Projecting Hotel Operating Flow-Through in a Volatile Economy | Erich Baum

Whereas hotel industry revenue levels will decline significantly through 2009 and perhaps through 2010 as well, many analysts and operators are programming rapid recovery in future years. By putting our store of historical operating data from our industry’s last periods of rapid decline (2000 to 2002) and recovery (2004 to 2006) to use, HVS herewith provides empirical historical data as a reference point, as well as a forecasting tool developed to help analysts and operators predict changes. The study focuses solely on those income and expense items with both fixed and variable components.