U.S. Hotels & Motels Industry
© 2009 Edition
U.S. Hotels & Motels Industry
© 2008 Trendology Research
TABLE OF CONTENTS
Economic Outlook Scenario Definitions
Economic Outlook Scenario - Estimated Number of Establishments
Economic Outlook Scenario - Estimated Industry Sales ($Millions)
Economic Outlook Scenario - Estimated Number of Employees
Industry Definition and Related Industries
Related Industries
U.S. Census Categories
SWOT Analysis - Internal Industry Strengths
SWOT Analysis - Internal Industry Weaknesses
SWOT Analysis - External Industry Opportunities
SWOT Analysis - External Industry Threats
Written Analysis - Financial/Industry Statistics
Written Analysis - Human Resources
Written Analysis - Inputs/Suppliers
Written Analysis - Consumers/Demand
Written Analysis - Government Regulations
Written Analysis - Technology
Written Analysis - Environmental
Written Analysis - Global Situation
Written Analysis - Mergers & Acquisitions
Written Analysis - Earnings & Profits
Written Analysis - Executives News
Written Analysis - Forecasts
5-Year Trend - Estimated Number of Establishments
5-Year Trend - Estimated Industry Sales ($Millions)
5-Year Trend - Estimated Number of Employees
Major Industry Players
2008 U.S. States - Estimated Number of Establishments
2008 U.S. States - Estimated Industry Sales ($Millions)
2008 U.S. States - Estimated Number of Employees
2008 U.S. Metropolitan Areas - Estimated Number of Establishments
2008 U.S. Metropolitan Areas - Estimated Industry Sales ($Millions)
2008 U.S. Metropolitan Areas - Estimated Number of Employees
Definitions and Terms
© 2009 U.S. Hotels and Motels Industry - Trendology Research 1
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Copyright © 2008 By Trendology Research
Printed in USA
All rights reserved. This publication may not be reproduced, stored in any information or retrieval system
or transmitted in whole or in part, in any form or by any means - electronic, mechanical, photocopying,
recording or otherwise - without the express written permission of Trendology Research.
Note: Every effort has been made to verify and ensure the accuracy of the information within this
publication. However, if any errors exist in this publication Trendology Research disclaims any liability for
any loss or damage to any party as a result of the information or errors in this publication.
© 2009 U.S. Hotels and Motels Industry - Trendology Research 2
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Economic Outlook Scenarios
Economic Outlook Scenarios are a unique Trendology method of projecting future industry growth or
decline. Each year when the Trendology reports are published, there are many factors that will impact
an industry in the upcoming year. Many factors would have a positive impact (termed optimistic economic
outlook scenarios) and others would have a negative impact (termed optimistic economic outlook scenarios).
Trendology Research believes these scenarios provide a useful tool for our clients so that they can 1) see
the factors that will potentially impact their industry's economy and 2) choose within a range the growth or
decline in their industry based on these economic factors.
The projections are based on regression analysis of past historical industry trends. 2006 and 2007 figures are
fixed. The 2008-2010 figures are projections are impacted by the economic outlook scenarios. 2008 figures
are impacted because at the time of publication, final data for the last months of 2008 were not available.
• Optimistic Economic Outlook Scenarios
1) Tax cuts remain in place
2) Consumer confidence continues to decline leading to a recession
3) U.S. dollar grows in value against competitive countries
4) U.S. government's economic stimulus package is effective
5) Housing foreclosures are minimal - mortgage companies and U.S. government solve crisis
6) Interest rate cuts are effective in stimulating investment
7) U.S. government is effective at stopping possible terrorist attacks on U.S. homeland
8) Oil prices decrease (supply increases or demand decreases due to conservation)
9) Illegal immigration decreases
10) Changes to trade regulation increases U.S. exports and improve trade balance
• Pessimistic Economic Outlook Scenarios
1) Tax increases are instituted
2) Consumer confidence improves or remains constant to avoid a recession
3) U.S. dollar continues to decline in value or remains at current value
4) U.S. government's economic stimulus package is ineffective
5) Housing foreclosures are significant
6) Interest rates cuts are mishandled and are not effective in stimulating investment
7) Terrorist attack on U.S. homeland
8) Oil prices continue to increase or remain at current level
9) Illegal immigration continues
10) No changes to trade regulations
© 2009 U.S. Hotels and Motels Industry - Trendology Research 3
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Number of Industry Establishments
• Economic Outlook Scenarios
Economic Year % Change from Year to Year
Scenarios 2006 2007 2008 2009 2010 06-07 07-08 08-09 09-10
Optimistic -- -- 50521 51056 51658 -- 1.1% 1.1% 1.2%
Stable 49468 49981 50495 51004 51565 1.0% 1.0% 1.0% 1.1%
Pessimistic -- -- 50468 50952 51471 -- 1.0% 1.0% 1.0%
*Economic Outlook Scenarios only apply to projected years.
Industry Establishments (Stable Economy Scenario)
52000
51500
Number of Establishments
51000
50500
50000
Number of Establishments
49500
49000
48500
48000
2006 2007 2008 2009 2010
© 2009 U.S. Hotels and Motels Industry - Trendology Research 4
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Industry Sales
• Economic Outlook Scenarios
Economic Year
Scenarios 2006 2007 2008 2009 2010 06-07 07-08 08-09 09-10
Optimistic -- -- 157102 163197 170979 -- 6.6% 3.9% 4.8%
Stable 141095 147355 155011 160886 167162 4.4% 5.2% 3.8% 3.9%
Pessimistic -- -- 152919 158575 163346 -- 3.8% 3.7% 3.0%
*Economic Outlook Scenarios only apply to projected years.
Industry Sales (Stable Economy Scenario)
170000
165000
160000
155000
Sales ($M)
150000
145000 Sales ($M)
140000
135000
130000
125000
2006 2007 2008 2009 2010
© 2009 U.S. Hotels and Motels Industry - Trendology Research 5
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Number of Industry Employees
• Economic Outlook Scenarios
Economic Year
Scenarios 2006 2007 2008 2009 2010 06-07 07-08 08-09 09-10
Optimistic -- -- 1456276 1471676 1489049 -- 1.1% 1.1% 1.2%
Stable 1425912 1440710 1455508 1470182 1486352 1.0% 1.0% 1.0% 1.1%
Pessimistic -- -- 1454741 1468687 1483655 -- 1.0% 1.0% 1.0%
*Economic Outlook Scenarios only apply to projected years.
Industry Employees (Stable Economy Scenario)
1500000
1490000
1480000
Number of Employees
1470000
1460000
1450000
1440000 Number of Employees
1430000
1420000
1410000
1400000
1390000
2006 2007 2008 2009 2010
© 2009 U.S. Hotels and Motels Industry - Trendology Research 6
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Industry Definition and Related Industries
NAICS 72111: Hotels (except Casino Hotels) and Motels. This industry
comprises establishments primarily engaged in providing short-term
lodging in facilities known as hotels, motor hotels, resort hotels, and
motels. The establishments in this industry may offer services, such as
food and beverage services, recreational services, conference rooms
and convention services, laundry services, parking, and other services.
Related Industries
Full-Service Restaurants
Drinking Places
Resorts and Casino
Fast-Food Restaurants
U.S. Census Categories
NAICS 72111 – Hotels & Motels is:
77% comparable to SIC 7011 – Hotels & Motels
22% comparable to SIC 7041 – Organization Hotels
© 2009 U.S. Hotels and Motels Industry - Trendology Research 7
U.S. Hotels & Motels Industry
© 2008 Trendology Research
Internal Industry Strengths
• According to Hotel Brokers International, US hotel investors see the next 12 months as an opportune time to
invest in conventional real estate.
• The US hotel/motel industry is preparing to accept International Financial Reporting Standards.
• H. Brandt Niehaus, president of Hotel Brokers International with over 30 offices in the US, says that financing for
hotels under $15 million is still available.
Internal Industry Weaknesses
• A 2008 industry expectation by Smith Travel Research calls for a 2.5 percent increase in supply industry-wide.
• Pessimism was strong at this summer’s NYU investment conference where industry speakers discussed recession
and economic concern.
• 2008-2010 projections for the U.S. Hotel industries by Smith Travel Research says to expect no new growth in
occupancy.
External Industry Opportunities
• Travelers are using the internet now more then ever to research budget travel