As we have discussed recently, the hotel industry is experiencing great success that is expected to continue in 2015. Alongside operational performance results, hotel pipeline metrics are widely considered strong indicators of the industry’s overall health. In STR’s U.S. Hotel Pipeline July Report, the hotel reporting specialists revealed:
Across all segments, there are 3,228 hotels totaling 388,359 rooms Under Contract in the US.
- Represents a 12.3% year-over-year increase in rooms Under Contract.
- Also represents a 43.5% increase in rooms Under Construction compared with July 2013.
The Unaffiliated/Independent segment currently has 1,542,323 rooms in the US marketplace.
- Within the segment, there are 105,307 rooms Under Contract, a 7.7% increase compared with July 2013.
- Additionally, there are 15,259 rooms Under Construction, a 51.9% year-over-year increase.
With global travel trending positively and hotel financing improving, hotel owners and operators are taking advantage of these opportunities to increase supply and capture shares of revenue and profits.
Armed with this information, hoteliers currently positioned in the market must evaluate whether or not their properties are prepared to compete with the hotels that will soon open in their communities. Among the many questions operators should ask themselves, they should include:
- Are my front desk and back office operations efficient and organized?
- Am I booking enough new guests to withstand additional competition in my local market?
- Am I optimizing my revenue and profits to sustain long-term growth and success?
If hoteliers cannot answer these questions confidently, they should view this as an opportunity to make changes that will position their property to not only withstand increased competition, but maximize its profit-generating potential.
As a partner to the hospitality industry, innRoad provides independent hotel owners and operators with a cloud-based, all-inclusive hotel management software solution for enhancing operations, increasing reservations and improving profitability. The four core technologies within our fully integrated hotel management software equips managers with the tools needed for long-term success:
- Property Management System: Streamlines front desk and back office responsibilities, reducing the time operators spend on routine tasks, like check in/out and billing, and allowing them to spend more of their day developing loyalty-building relationships with their guests.
- Booking Engine: With more leisure travelers relying on hotel websites to make their lodging decisions, it’s critical to convert their curiosity into reservations while you have their attention. innRoad’s Booking Engine transforms hotel websites into revenue-generation channels by enabling them to capture commission-free direct bookings.
- Global Distribution: Attracting new guests is the key to long-term success in the hospitality industry. Our Global Distribution services connect hotels to the world’s leading Online Travel Agents, including Travelocity, Priceline and TripConnect from TripAdvisor, immediately enhancing their exposure to travelers worldwide who are looking to book their next trip.
- Revenue Management System: Alongside directing efficient operations and providing high-quality guest experiences, managing profitability is a primary responsibility for all hoteliers. innRoad’s Revenue Management System puts managers in complete control of important performance metrics, including Revenue Per Available Room (RevPAR), Average Daily Rate (ADR) and Occupancy, and ensures their hotel is optimized for maximum profitability.
innRoad equips independent hoteliers with the technology needed to thrive in a competitive and ever evolving marketplace. Download our Buyer’s Guide today to learn more about ensuring your hotel’s long-term success with our industry-leading hotel management software.
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