US hotels are falling further and further behind their peers, according to hotel and restaurant ratings agency, Standard & Poor’s.
The agency said last week that the number of US hotels was down 3.6% in the 12 months to June, compared with a similar period last year.
That has sent US hotel sales down by a quarter, S&P said.
S&P’s latest annual report shows US hotel occupancy rates were down 4.7% in June, down from 5.9% a year ago.
But the agency also said that the US hospitality industry is struggling to meet the pace of growth expected in coming years.
The hotel industry is forecast to see a 2.4% annual increase in new business in 2021, compared to a 3.4%, the agency said.
S&’s latest data comes after the Federal Reserve said last month that it would begin raising interest rates in early 2019, possibly on the heels of a record-setting rally in the stock market.
The Fed also said on Tuesday that it expects to begin buying long-term government debt, potentially through a bond-buying program known as quantitative easing, in the second quarter of 2021.