The “Perfect Storm” for Springwood Hospitality

It feels as if Springwood Hospitality is in the middle of a perfect storm – the good kind:

  • The U.S. hospitality industry is experiencing 4.5% demand growth with less than 2% supply growth.
  • Industry experts project U.S. RevPAR gains of 7.5% in 2015, with even better margin growth.
  • Asset pricing is knocking on the door of historic levels.
  • Millennial travelers (age 39 and younger) are poised to overtake Baby Boomers as the #1 market segment for moderate-to-upscale hotels within two years, and Hilton and Marriott are both leading the way with technology and features that Millennials find attractive (no surprise).
  • Hilton has launched a new brand (OK it’s three years old) conceived from the ground up to attract Millennials, and early results are outstanding.  It looks to me as if Home2 Suites by Hilton will be the fastest-growing hotel brand (of 50 hotels or more) in the U.S. in the 2015-2018 time frame.
  • Our high-barrier-to-entry local markets are growing, and our investors are poised to benefit from that growth.
  • Our investor following has never been larger or more loyal, because they like what they see.  This enables us to accelerate growth and benefit everyone we work with.
Charts from the 12/2014 issue of National Real Estate Investor tell the story of the perfect storm.

Charts from the 12/2014 issue of National Real Estate Investor tell the story of the perfect storm.

As we look at where we are, we are thankful for every investor who has trusted us to grow their hard-won cash.  We work every day to earn that trust.  We are thankful for the vendors with whom we partner, because they help us make it look easy to achieve the award-winning results that are part of our culture.

We are thankful for every associate who touches the lives of the weary travelers we love and comfort at our hotels.  We truly cherish the opportunity that we have to help make hundreds of lives just a little better every day because they chose to call a Springwood-managed hotel their home for a day, a week, or longer.

We wish you all the best and brightest this holiday season, whatever your tradition or faith may be.  For us, it is our pleasure to to wish you a very Merry Christmas, and a joyous and prosperous new year!

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