With no new supply, increasing demand, and growth in average rate, we expect the next several years to be very strong.

Nationally, Smith Travel Research (STR) reports that supply grew 2.2 percent during 2010, and demand increased 6.6 percent. They further project the industry will end 2011 with increases in all three key metrics: Occupancy is forecast to rise 1.4 percent to 57.9 percent; Average Daily Rate (ADR) is expected to be up 3.9 percent to US$101.55, and Revenue per available room (REVPAR) is projected to rise 5.3 percent.

With all the key metrics like Consumer Price Index, Gross Domestic Product, Industrial Production and even unemployment headed in the right direction, the hotel industry, which closely follows these metrics is beginning an upward cycle as we head toward the end of February. We expect the next several years to be very strong for several reasons; no new supply, increasing demand and growth in average rate.
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Bob Rauch answers questions from Craig Sullivan of The Hotel Inventory on the hospitality market in San Diego during the 2010 Lodging Conference.

Click here to see Bob’s article in The Hotel Inventory

By: Robert A. Rauch, CHA

Today’s economy has had an enormous impact on the fortunes of the U.S. lodging industry. Some markets have been impacted more than others. Thankfully, for San Diego, the access to millions of potential travelers within a short driving distance, along with a diverse economy and a strong convention center, has lessened the blow. This article seeks to show how San Diego is faring vis a vis overall industry financial performance.

According to Smith Travel Research, (STR) the U.S. hotel industry is projected to end 2010 with increases in two of the three key performance measurements, according to their most recent forecast update earlier this month.

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The recovery is real, as we reported in our last update in Hospitality Innsights. Double-dip recession fears are just that – “fears.” It has become clear to forecasters that the bearish predictions for 2010 were a bit over the top. On a macro basis, gross domestic product grew 3 percent in the first quarter of 2010, down from the nearly six percent growth in Q4 of 2009. This growth seems to be more sustainable, and unemployment levels seem to inching back, albeit at a slower pace than all of us would like to see.

Tourism spending rose at an annual rate of 3.9 percent during the first quarter, led by increased spending on hotels and other accommodations, according to The Bureau of Economic Analysis. The increase is significant when compared with a 1.5 percent drop during the fourth quarter of 2009.  Spending on hotels and other accommodations rose at an annual rate of 11 percent in the first quarter, after falling at a rate of 7.9 percent in the fourth quarter. The BEA said accommodations were the largest contributor to the growth in travel and tourism spending.
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Hydrating, Rejuvenating Sunless Tanning System Comes to Serenity Spa & Salon

In an effort to combat the most common form of human cancer, Serenity Spa & Salon is now offering the Infinity Sun spray tan to people who want a healthy glow, without the dangerous side effects that come from spending hours in the sun or tanning bed.

In addition to slicing the risks of skin cancer, Infinity Sun uses a cutting edge technology to deliver the most customized tan through anti-aging, hydrating elixirs for the ultimate beautifying experience. Celebrities like Jessica Alba, Giselle Bündchen, Paula Abdul, David Beckham stand by Infinity Sun, and apply the sunless spray tan before red carpet appearances and big events.

“As people are becoming ever more aware of the dangers of sun exposure and tanning beds, we are happy to offer this new service that will give our clients a healthy glow without aging their skin or putting them at risk,” said Jessica Woolfrey, manager of Serenity Spa & Salon. “This system, and our expert tanning consultant will deliver the longest-lasting, most natural looking sunless tan possible.”

Infinity Sun’s “Glow On the Go” eco-friendly sunless tanning aerosol is made with 7 essential oils, Vitamin A, E and vanilla aromatherapy. It is the only spray tan in a can that does not use propellants and alcohol, and keeps the skin soft and hydrated, while creating a luminous glow that lasts for up to 7 days.

Serenity Spa and Salon, a full-service Spa and Salon in Carmel Valley, serves locals and visitors to America’s Finest City. They offer a full range of services including hair, beauty, massage, and nail treatments. For more information about Serenity Spa & Salon visit www.serenityspasandiego.com or call 1-858-369-4900 to book an appointment.

Infinity Sun is featured prominently on many hit TV shows, including Millionaire Matchmaker, Entourage, Sunset Tan, The Style Network’s “Style Scenes”, E! Entertainment’s Academy awards “48 hour make-over”, Dr 90210 and many others. Infinity Sun was also the Official Spray Tanning system on the Britney Spears Circus Tour. For more information about Infinity Sun visit www.infinitysun.com or call 323-782-1049.