How is the U.S. hotel and motel industry doing? Quite well, it seems. In an article by Mary Ellen Biery on Forbes, Sageworks Analyst Brad Schaefer reports “in our data, we have seen some industries, like the retail sector, take a hit in sales growth but so far, hotel industry sales are still growing healthily and haven’t shown signs of stopping yet.” Sageworks’ data shows a growth of 7.87% in sales and 33.91% in profit. Privately held hotels and motels, thanks to the continuing improvement of tourism and business travel since the recession, have seen several years of solid sales and profit growth. Tourism and business travel improvements come as no surprise to Urbana Varro, which has chosen for its Opportunity Fund hotels that are ready to take advantage of this growth.
Urbana Varro is a private equity firm specializing in hotel real estate.