This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.  Find out more here  Close
HIP: US hotel recovery outpacing economy
January 5 2012

The Hotel Industry Pulse index rose to a reading of 106.4 in November, following an increase of 0.4 % in October. The index was set to equal 100 in 2005.

DURHAM, New Hampshire—Business activity in the U.S. hotel sector increased during November, according to the latest reading of’s Hotel Industry Pulse index.

The Hotel Industry Pulse index, or HIP, is a composite index that gauges monthly overall business conditions in the U.S. hotel industry. It rose to a reading of 106.4 in November, following an increase of 0.4 % in October. The index was set to equal 100 in 2005. 

HIP's six-month growth rate, which has historically confirmed the turning points in U.S. hotel business activity, had a positive rate of 5.2% in November, following a positive rate of 5.4% in October. This compares to a long-term annual growth rate of 3%, the same as the 30-year average annual growth rate of the industry's gross domestic product.

The probability of the hotel industry entering into recession, which is detected in real-time from HIP with the help of sophisticated statistical techniques, registered 7.7 % in November, up from 7.1% reported in October. When this recession-warning gauge passes the threshold probability of 50%, the U.S. hotel industry enters a recession.

Default Ad Will Appear Here

“While business activity has slowed for hotels in the U.S., it appears the year will close out with little risk of an upcoming recession,” said Evangelos Simos, chief economist of     
Two of the three demand and supply indicators of current business activity that constitute HIP had a positive contribution to its change in November: Spending on Hotels and Hotel Capacity. The current business activity indicator, which had a negative or zero contribution to HIP's change in November, was Hotel Jobs.  
Continues Dr. Simos, “In the last 12 months (November 2010 to November 2011) overall economic activity, measured by's monthly U.S. GDP, rose by 1.7%.  Over the same period, economic activity in U.S. Hotels, measured by HIP, increased by 6.4%."

The Hotel Industry Pulse index, or HIP for short, is a hotel industry index that was created to fill the void of a real-time monthly index for the hotel industry that captures current conditions. The index provides useful information about the timing and degree of the industry’s link with the US business cycle for the last four decades. Simply put, it tracks monthly overall business conditions in the industry, like an industry GDP, and points in a timely way to the changes in direction from growth to recession or vice versa. The composite index is made with the following components: revenues from consumers staying at hotels and motels adjusted for inflation, room occupancy rate and hotel employment, along with other key economic factors which influence hotel business activity.

Login or enter a name   Post Your Comment  Check to follow this thread via email alerts (must be logged in)
(4000 characters max)

Comments that include links or URLs will be removed to avoid instances of spam. Also, comments that include profanity, lewdness, personal attacks, solicitations or advertising, or other similarly inappropriate or offensive comments or material will be removed from the site. You are fully responsible for the content you post. The opinions expressed in comments do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Please report any violations to our editorial staff

Airbnb accounts for 5.4% of NYC demand
AC brand enters US, 50 more on tap
NYC Plaza saga continues to unwind
IHG’s Kimpton buy a ‘perfect fit,’ CEO says
6 things about Expedia you didn’t know
Indigo Chelsea GM living the NYC dream
Wyndham focused on management
Greg Mount talks RLHC's turnaround
The Lodging Conference in review: Day Two
The Lodging Conference in review: Day One
US supply growth not a problem
Freitag’s forecast: 10 predictions for 2015
STR: US results for week ending 13 December
US hotel conversion list
The future of Facebook in hotel marketing
Secondary US markets ripe for development
Dear millennials, we need to talk
Contact Us
Hotel News Now
18500 Lake Rd.
Suite 310
Rocky River, Ohio 44116
Copyright © 2004 - 2014 Hotel News Now, a division of STR, Inc. All Rights Reserved.   Privacy