According to Geoffrey Moore in his book Living on the Fault Line: Managing for Shareholder Value in the Age of the Internet, stock price is a measure of future potential based on present competitive advantage. Competitive advantage consists of two components, GAP and CAP. The first, GAP, is the distance between your hotel offerings and your nearest competitors or the competitive advantage gap. The second is CAP, the competitive advantage period…
As the landscape continues to change on this subject, it is important to keep the facts straight which is why I felt it is a good time to provide an update. Remember, this is one man’s opinion. There is nothing here but a love for San Diego and the Chargers (despite their current record). Below are my thoughts.
This past week, many of us got together at the Lodging Conference in Phoenix. The forecast, depending on who you believe, is cloudy. Aran Ryan, Director of Lodging Analytics at Tourism Economics stated that business investment and the energy sector are down and the overall economy has plateaued.
This article is designed to include the keys to business planning and development success but there are changes occurring in our industry that require monitoring. These include disruption (is it really disruption or is it innovation?) and changes that have transformed our industry from an art to a science. Before we complete our business plans for 2017, a review of macroeconomic data is in order. China’s growth is slowing, Europe remains suspect due to the Brexit and limited growth signs but we do not anticipate a recession in the U.S. economy in 2017. Despite the economic uncertainty and global terror threats, we believe a soft landing will keep the U.S. slowing to about a 1.5 percent GDP growth rate in 2017.
Horton Plaza served as the catalyst for San Diego’s development in the recent past and it became the anchor for future development. Not only did it impact downtown but it also shepherded a resurgence in leisure market getaways including Mission Bay, Pacific Beach, and La Jolla.
There are a number of misconceptions floating around the hotel industry about our largest growing demographic, the Millennials. This stems from an overgeneralization of the key trends that they have brought to the forefront of our industry. The Millennials, generally categorized as those born between 1980 – 1995, are a maturing group that prizes the use of technology for efficiency and ease of doing business.
The first half of 2016 included a bit of a negative impact from China’s economy, some terrorism events and a softer than predicted first half in terms of financial performance. Here is a primer on where we are in this noble institution of hospitality as of the 2016 midpoint.