SOURCE: Rothman Research
JOHANNESBURG, SOUTH AFRICA–(Marketwire – August 2, 2010) – www.RothmanResearch.com undertakes intensive analysis of the REIT – Hotel/Motel industry and provides systematic research on Diamondrock Hospitality Co. (
With the hospitality industry being one of the hardest hit by the current recession, shareholders will be glad to hear that a turnaround is expected this year. In 2009 all three of the key metrics – occupancy, average daily rate, and revenue per available room – used to determine the financial health of the Hotel/Motel industry fell during every month. However, the industry is beginning to show signs of recovery at the midpoint of 2010.
www.rothmanresearch.com is a source for investors seeking free information on the REIT – Hotel/Motel industry; investors and shareholders of Diamondrock Hospitality Co. and LaSalle Hotel Properties are encouraged to sign up for free at http://www.rothmanresearch.com/index.php?id=6&name=Register.
Recent company earnings reports show that some industry players are meeting their Wall Street projections. This turnaround from last year is accredited primarily to strengthening business travel. As confidence in the economy returns, business and group travel has increased greatly. The increase in business and group travel will result in a top-down recovery as these travellers prefer more expensive hotels meaning the hotel chains with limited offerings will feel the effects of the turnaround more slowly.
On the Lodging REITs side, Diamondrock Hospitality Co. posted a revenue growth to $151.1 million for the quarter as compared to the same quarter a year ago. Nonetheless, the company saw a drop in profit due to its expansion for the quarter and higher taxes. Conversely, a week before LaSalle Hotel Properties another player in this space saw earnings at par with the same quarter 2009. However, the company reported higher room rates and a noteworthy improvement concerning the hospitality industry as a whole. www.rothmanresearch.com provides technical analysis and free downloadable research reports on Diamondrock Hospitality Co. and LaSalle Hotel Properties by signing up now at
A recent study released by JD Power and Associates has shown that despite the cost cutting by the hotel industry to accommodate decreased revenue, the expected decrease in customer satisfaction has not manifested itself. With hoteliers focusing their cost cutting on areas that mitigate the effect on customer experience, satisfaction actually rose across the board aside from the anticipated area related to the lowered rates and fees. This counter-intuitive increase is reportedly due to lower occupancy increasing the quality of traveller stays. With occupancy and room rates stabilizing along with the economy, it will be interesting to see if the hotel industry can manage the new expectations of their customers and maintain their upward trend.
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