hospitalitystyle.com

(June 2011) posted on Wed Jun 22, 2011 EDT

There are enough green shoots to get hospitality design firms growing again.

By Mary Scoviak

The hotel industry’s numbers aren’t so scary anymore. STR reports that the US hotel industry posted increases in all three key performance measurements in May: occupancy was up 4.6 percent to 61.5 percent, average daily rate ended the month with a 4.0-percent increase to US$101.54 and RevPAR rose 8.8 percent to US$62.47.

“The U.S. hotel industry continues to get closer to peak ADR levels reached in 2008,” says Amanda Hite, president at STR. “May’s gains and the steady ADR gains for the year are positive signs that hoteliers are starting to feel comfortable leveraging rates. With consistent demand for hotel rooms it is clear that the industry is on the right path, and we are looking for even more improvement in ADR for the remainder of 2011.”

So, where should you be looking for business? Not in the usual places. Among the Top 25 Markets, STR found that Detroit experienced the largest occupancy increase, rising 13.7 percent to 61.4 percent, followed by Tampa-St. Petersburg, Florida, with a 13.0-percent increase to 58.6 percent. Nashville (-5.8 percent to 63.7 percent), and New York City  (-1.9 percent to 85.9 percent), reported the only occupancy decreases among the top markets. Okay, so New York is always on the radar, but this does indicate that there’s a lot happening across the country.

Chains continue to capitalize on the growing demand both domestically and internationally. Starwood Hotels & Resorts has plans to open more than 30 hotels this year. Ritz-Carlton unveiled a $2 billion expansion program which will add 100 properties over the next five years. Regional developers are also on the move. Urgo Hotels, a major operator, developer and owner of upscale hotels, acquired two Miami Beach landmark hotels for $26.7 million in a joint venture with The Carlyle Group, a global alternative asset manager. “Significant renovations” are planned for the 75-room Blue Moon Hotel and the 71-room Winterhaven Hotel, both located in South Beach’s art deco district. Both public spaces and guest rooms will be upgraded.

It’s news like this that’s building confidence. Not only are firms hiring again, but there are new studios starting up. One that promises to be a force to be reckoned with: La Cour Chodos. Cheryl Rowley Design alum Robert La Cour and Alisa Chodos have decided to open their own firm. “We worked together at CRD for six years and loved partnering so much that when Cheryl closed her office last month- we decided to put out a shingle! We’re focusing on hotels and high end residential (as before),” says Chodos. Best of luck.