Hotel fundamentals are improving slightly in the United States, but industry analysts say the real growth in the industry is happening in international markets, especially in developing economies. Large hotel corporations, including Hilton and Hyatt, are entering markets like China and India to build new properties. The Brazilian market is also expected to grow significantly in the coming decade, with the hosting of the FIFA Soccer World Cup and the Summer Olympics in 2014 and 2016, respectively.

Jones Lange LaSalle Hotels is forecasting that international hotel transaction volume will hold steady in 2012. Their experts are expecting 2012 worldwide transaction levels to at leach match 2011 levels. That represents a 13 percent increase over 2010 volume.

The construction of new hotels in the U.S. market has historically grown at an average of approximately 2 percent per year, but the recent growth rate has been less than 1 percent. This low growth rate is expected to continue as demand does not warrant significant growth.

Major markets such as New York, Chicago and Boston are likely to see more demand than the secondary markets. In addition, the U.S. industry is starting to see smaller boutique properties being developed to meet the preferences of a new generation of travelers.

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MCB has over 35 years of real estate and hotel accounting experience providing audit, tax and financial statement services. Contact an Adviser today at info@mcb-cpa.com or call 703.218.3600 to discuss your hotel accounting and tax needs or to receive a proposal for your next financial statement audit.

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