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We've already hit some plateaus in the last few months, and in 2006 we are going to see things moderating. But even with that, hotels are going to be full and there will be a good chance of a record year in room numbers.
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The Big Island, as with other market expansions, has always lagged the market. We began to see the Big Island catch up in 2005, and we should continue this strengthening in 2006.
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We can expect continued increases in the U.S. East market.
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The hotel capital markets continue to be flush with cash, due in part to the record profits the U.S. industry will have earned in 2005. There will be several major trophy hotel sales that will be completed or announced in the first half of 2006 with more to come after.
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Hotel demand should level off given the already high occupancy and tight capacity. We actually still have some capacity, so there is still likely some room for growth in occupancy and room demand.
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