Those of us who have worked in hospitality long enough know the business is cyclical due to market forces of supply and demand. Fortunately, we have enjoyed several strong years as the economy rebounded from recession, and we are looking forward to another year of healthy growth in occupancy and rates.
The midscale segment — where most of M&R Hotel Management’s hotels operate—performed well in 2014 and is expected to continue to perform strongly this year. PKF Hospitality Research says revenue per available room, or RevPAR ̶ an indicator of profitability ̶ jumped 7.8 percent in 2014 and will grow another 5.5 percent in 2015.
M&R has benefited from the up cycle as owners seek expert management for their new and existing hotels. We recently opened the newly constructed Holiday Inn Staten Island in our home market of New York and expanded into the Boston and Caribbean markets as operator of the Holiday Inn Express Braintree and Alegria Resort in St. Maarten.
During the last 10 years, M&R Hotel Management has built a reputation for managing hotels efficiently, delivering excellent guest service and driving sales and revenue. While I’ll take an up cycle over a down cycle any day, I am confident our commitment to performance and quality and service will prevail in any economy.