Miami, FL -- (SBWIRE) -- 03/29/2012 -- Time Magazine published an article recently titled, “Why Hotel Rates Spiked in February” on record increases in hotel rates across the country. Hotel rates hit a record number last month since the recession began which is a positive sign for the hotel industry as this is a direct response of increased occupancy. This is good news not just for hotels but hotel employees and other businesses in the hotel industry.
Matrix Renovations, a hotel renovations company, took particular notice to rate increases in February – as this means hotels will now need to compete with one-another for quality rather than just price. Matrix Renovations performs instillation and renovations projects ranging from installing new TVs for hotel rooms to renovating lobbies. Matrix Renovations has also seen an increase in projects as the hotel industry continues to show signs of strength. Mike Kistner chief executive at Pegasus Solutions stated, “Ever since the recovery started in late 2009, occupancies crept up, but they weren’t supported by rate increases….we were waiting for market leaders, someone who would have the guts to step up and say, ‘My product is worth this much'”.
Hotel renovations companies like Matrix Renovations expect a lot of projects in the coming months. Primarily because many hotels held off on updating their features and appliances during economic downtime. Now that hotels are starting to see more occupancy and are able to increase their rates across the country – it has become imperative for hotel owners to increase the amount of instillation and renovation projects.
Implications of economic recovery for hotels are not limited to that particular industry. Hotels are directly tied to both travel and business travel industry which, if in recovery, would be a broader sign of widespread economic recovery. The Time magazine article mentioned above has many people in the hotel and travel industry wondering if 2012 will be the year they see steady economic growth.