The industy’s oracle, Barry Sternlicht of Starwood Capital, spoke on CNBC this morning and made a noteworthy comment about business conditions, particularly in New York City. Listen and watch here.
While talking about the slow-growing economy and the somewhat surprising lack of U.S. consumer spending during the past holiday season, he also mentioned how he likes to closely follow hotel action in New York City as an indicator.
He said, “I always watch New York City hotel rates and occupancy from my days with Starwood Hotels as it leads the economy up and down. It started to recover before the economy recovered and it went over the hill before the economy went over the hill, and right now New York City is a little soft and it kinda bothers me that way.”
No, Barry does not have a crystal ball, but he is about as financially astute as they come in the hotel business. So, draw your own conclusions.
I am also curious to know what you think about the current trends in our global economic rollercoaster and its potential impact on hotel performance for the rest of 2014. It’s not CNBC, but speak up here.