Hotel Industry Leading Indicator weakens

The U.S. Hotel Industry Leading Indicator decreased 1.1% during September after a slight drop of 0.5% during August, reports economic research firm e-forecasting.com in conjunction with STR.  The U.S. Hotel Industry Leading Indicator, or HIL, is a monthly leading indicator for the U.S. hotel industry that, on average, leads the industry’s business activity four to five months in advance. The latest monthly change brought the index to a reading of 113.3. The index was set to equal 100 in 2000.

“As noted the last few months, the decline in the Hotel Industry Leading Indicator continued in September. This month marks the first month since last August that the six-month growth rate is below its long-term trend, which historically means an upcoming slowdown in growth for the industry,” said Maria Simos, CEO of e-forecasting.com.

The U.S. Hotel Industry Leading Indicator, or HIL for short, is a monthly leading indicator. Building off the tracking success of HIP, the real-time indicator for the U.S. hotel industry, HIL was built as a composite indicator that uses nine different components that, on average, when put together have led the industry four to five months in advance of a change in direction in the industry business cycle. The indicator provides useful information about the future direction of the U.S. hotel industry.

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