Financing the lodging industry in the next millennium

Abstract

Lending to the industry has seemed to occur in 5-year cycles where lenders alternate between a period of marked flexibility with generous lending terms and then followed by a period of austere lending terms. During the last decade of the 20th century indications are that there is prudence both in the demand and supply markets and some expect that this environment will persist long enough into the new millennium to prevent the recurrence of the boom and bust cycle of hotel financing. With many new financial instruments and new sources of financing introduced in the last decade of the century this paper presents the results of a Delphi study about lodging financing in the next millennium. It highlights the predictions of selected experts from the lodging and financial services industries.