The U.S. hotel industry has been growing steadily for almost a decade according to CBRE Hotels Americas Research. And this trend is expected to continue. In January 2019, we sat down with CGI Founder and CEO, Gidi Cohen to discuss projections and plans for company growth in 2019. One of the things he talked about was the company’s plan to focus on and possibly increase hotel assets. This is because expert analysis predicted a surge in occupancy levels to 66.2%, driven by a 2.1% increase in demand. And so far, occupancy is exceeding that projection at just over 68%.
Here’s why we think that is. Post-recession, more and more people are throwing the towel in on traditional 9-5 jobs and are instead opting for more work-life balance and the rise in the Internet as an opportunity multiplier. More and more people are discovering how they can make a decent living freelancing or working for themselves. The concept is allowing for more flexible work arrangements, including many of our guests who choose to work and live in one city or in one part of town for a month or three, and then they move on to another.
In Los Angeles, our properties, many of which require a 30-day minimum stay are magnets for actors, musicians and other creatives who are in town for a shoot or a gig and want to feel at home and relaxed in their environment.
