Hotels Move from Owning to Managing

Recent predictions of the hotel business making a comeback from the recession have some large hotel companies prepared to sell off some of their properties and focus on the "less capitalist" business of managing hotels. Hotel brands such as Marriot International and Hilton are prepared to sell off several of their properties and cash in on the comeback of the hotel industry. Buyers are poised to purchase these properties as revenue per available room is estimated to rise as much as 10.8% by 2011. In turn, they will continue to withhold contracts with the initial owners of the hotels, corporations such as Marriot and Hyatt, who will continue to manage the hotel for a price.

This transfer of the managing and owning power of the major players in the hotel industry will significantly decrease the amount of new hotels opening in the nation. With the major corporations wanting to own only a few significant hotels, it will become increasingly difficult for new hotels to find the funds to open and stay open. In return, the hotel industry will be narrowed down even further to a few big players such as Marriot, Hilton, Hyatt and Starwood owning and managing the few hotels left in the industry. As a result, these businesses will boom and property values will significantly increase.

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