INTERNATIONAL REPORT—Ask David Kong when Best Western International first started showing signs of recovery, and he’ll tell you February of this year. The turning point wasn’t hard to pinpoint, said the president and CEO of Best Western International. It was just a matter of tracking an uptick in demand.
Demand is the basis of recovery. While its return might not signal the throes of industrywide growth, it does act as an accurate bellwether of performance, blazing the way for strengthening fundamentals behind it, according to most of the sources interviewed for this report.
“Demand is the critical (recovery sign),” said Tom Hewitt, chairman and CEO of Interstate Hotels & Resorts. “It’s the foundation of any trend up or down. Fortunately we’re seeing demand moving (upward).”
The data wonks at PKF Hospitality Researchshared a similar sentiment.
“I focus first and foremost on demand,” said Mark Woodworth, president of the Atlanta-based research company. “If demand is contracting or stagnating, that’s a pretty important thing for me to understand. I have to fundamentally change my management outlook and focus more on what do I need to do now to increase my share in a contrasting market … as well as what do I need to do in the way of cost cuts to try to save my bottom line.”
Total United States demand is up 5.7 percent this year through April, according to STR. This is a vast improvement from year-end 2009, when demand was down 6.0 percent.
In real numbers, demand is stronger than it was in 2002 or 2009, but still behind the fast times of 2007.
U.S. total room nights sold (in millions)
| Year |
April year to date |
Year end |
| 2002 |
292.6 |
937.5 |
| 2007 |
320.2 |
1,027 |
| 2009 |
290.7 |
944.3 |
| 2010 |
307.3 |
N/A |
Source: STR
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HNN- Recovery signs: Demand
Demand is the basis of recovery. While its return might not signal the throes of industrywide growth, it does act as an accurate bellwether of performance, blazing the way for strengthening fundamentals behind it, according to most of the sources interviewed for this report.
“Demand is the critical (recovery sign),” said Tom Hewitt, chairman and CEO of Interstate Hotels & Resorts. “It’s the foundation of any trend up or down. Fortunately we’re seeing demand moving (upward).”
The data wonks at PKF Hospitality Researchshared a similar sentiment.
“I focus first and foremost on demand,” said Mark Woodworth, president of the Atlanta-based research company. “If demand is contracting or stagnating, that’s a pretty important thing for me to understand. I have to fundamentally change my management outlook and focus more on what do I need to do now to increase my share in a contrasting market … as well as what do I need to do in the way of cost cuts to try to save my bottom line.”
Total United States demand is up 5.7 percent this year through April, according to STR. This is a vast improvement from year-end 2009, when demand was down 6.0 percent.
In real numbers, demand is stronger than it was in 2002 or 2009, but still behind the fast times of 2007.
Source: STR