PKF-Hospitality Research Releases Hotel Horizons® Forecast Accuracy Assessment

Hotel industry forecasting is not for the faint of heart. During the recession that began in earnest in 2008, the magnitude of the economic declines deviated so far from long run norms that it was virtually impossible for econometric models to predict what ultimately occurred in the hotel industry. Despite the challenge, the lodging forecasts still provided meaningful guidance for owners and investors trying to operate through the historic downturn. Because of the severity of the decline and its length, lodging forecasts had to be updated based on the ever changing economic outlook.