The Lodging Conference 2024 kicked off in Phoenix yesterday and while the temperatures are hitting a heat-wave record, the mood inside was cautious but also optimistic looking ahead.
Economist Bernhard Baumohl told the audience of 2,900 that the lodging fundamentals generally remain strong but three things would impact the 2025 outlook:
- How much and how quickly would the Fed lower interest rates
- The implications of the geopolitical crisis across the world
- The 2024 U.S. presidential election
Baumohl did predict further 25 bps interest rate cuts in both November and December from the Federal Reserve, which was welcome news. But the industry could plateau despite the positive news.
The View from the Top panel also declared optimism looking forward for the industry as a whole. The panel was moderated by Kevin Carey, interim president and CEO, AHLA and featured Julie Arrowsmith, president and CEO, Motel 6 & Studio 6; Arash Azarbarzin, principal and CEO, Highgate; Geoff Ballotti, president and CEO, Wyndham Hotels & Resorts; Joe Berger, president and CEO, BRE Hotels & Resorts and John Murray, president and CEO, Sonesta.
When asked what the headline for 2024 would be, the panelists had varying remarks from "ugh" to "steady 2024 but be ready for growth in 2025," Murray told the audience.