Ad Opportunities: New Hotels Opening Nationwide

 

Business and leisure travelers are about to have a lot more accommodations options to choose from.  Up to 100 new hotels are opening their doors in major markets like New York City, Atlanta, Boston, Chicago, and Los Angeles in the next few months.  This expansion comes as hotel occupancy rates plummeted in 2009 to 55.2%.  Even if there’s a slight improvement in the 2010 accommodations market, as predicted by some analysts, inventory will greatly exceed demand.

The problem stems from a lack of supply in markets such as New York City and Houston, especially during the boom years of 2004 – 2008. The logical solution was to increase supply to meet projected demand.  The lead time between planning these structures and opening the doors for business can run as long as six years. After the recession started, investors had little choice but to move forward with the buildings already under construction. In the long run, some revenue coming through the door is better than no revenue.

Writing for the New York Times, Jane Levere reports that “[f]or the time being, all the new hotels will add to what was already a buyer’s market.” Industry watchers expect steep price discounting to occur. Hotel marketers will need to increase their ad campaigns to reach both business and leisure travelers with this good news.

[Sources: U.S. Occupancy Rates, Hotels Magazine, 11.6.09; Levere, Jane. Even More Room at the Inn, New York Times, 1.18.10]