Study Finds Lodging Demand More Stable in University Towns
The new International Council on Hotel, Restaurant, and Institutional Education Penn State Research Report, entitled “University Lodging Demand: An Analysis of its Stability and Guidance for Estimating its Growth Potential at the Market Level,” reveals the demand for college and university lodging is more stable than the typical lodging demand, and that markets dominated by a college are more stable in terms of not only occupancy rates, but also average room rates.
“At many recent hotel-investment conferences and in recent issues of hotel-trade magazines, hotel developers have proposed that a hot prospective location for hotel development is near colleges and universities,” said School of Hospitality Management director John O’Neill, who conducted the study. “The primary reason often cited for this optimism is the relative stability of lodging demand generated by colleges. However, until now, this proposition has never been empirically tested, and no empirical research has shown hotel developers what variables about colleges they should study to determine the feasibility of hotel development in any given college marketplace.”