The Yo-Yo Effect

Hotel Interactive, Inc.:

It sure doesn’t seem like the good times are over. At least that’s what it felt at from this year’s NYU Hospitality Investment Conference and the whirlwind of events that were surrounding this heavy hitting financial meeting.

Between corporate spending on lavish events, free flowing champagne at the main event and all around town, as well as a decidedly upbeat attitude resonating from a record 2,400 conference attendees, it was easy to believe the industry was still in a surging up-cycle. Instead, many executives and financial seers believe the industry here in the United States has slowed down considerably.

Truth is, at least from the franchisor side of equation, U.S. based hotel corporate managers have made the mental switch from perceiving themselves as companies that dabble overseas to being involved in expanding in a wealth of new markets.

And this new way of looking at bottom line possibilities has caused many executives to believe the potential for riches made overseas will mitigate any domestic losses. It’s a state of thought permeating the business and is a likely explanation for the duality of the conference mood: Both upbeat about the future and somewhat sullen from declines of U.S. occupancy growth and a tight credit market. More.