Hotel segments and the laws of economics
With an opportunity to examine hundreds of hotel markets and thousands of competitive sets since joining STR Analytics, I have observed that, to its detriment, the hotel industry operates somewhat counter to other sectors of the economy. During a severe economic recession, most industries find products that cater to the budget-conscious lose less or even increase demand relative to those that appeal to the luxury segment. But STR data indicates the opposite occurs in the hotel industry.
