Abstract
Lodging-industry data from Texas, 1976-1992, reveals trends with national implications. While lodging demand overall was down from 1981 to 1987, the chain-hotel market never stopped growing while independents experienced a decline. Many consumers are buying products that represent good value and avoiding low-price and low-quality offerings, yet budget-category business will improve modestly. It is not feasible to operate an on-site restaurant with a midprice hotel-such properties are being replaced by high-quality, limited-service chains. It's worth paying the premiums to get a brand that performs; for example, suite- and courtyard-style properties generally are popular and profitable. In 1990 Marriott's hotels passed the rest of the upscales in yield and they have widened the gap since. The U.S. lodging industry is entering the most consistently positive period of occupancy and rate growth in more than 30 years.
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