ECONOMY CEO BARRY Flashcards
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What are the Signs Of Troubled Economy?
Economy is not growing, rising financing costpricing power, contracting bottom lines.competition for capitallack of jobs
Impact of a declining economy
Business has moved into a vacuum everything is bit destabilised by covid, signs of inflation in shopping/deflation (in hotel rates)yield curve has taken a negative trend for a long period and now for some flattening out. Economy will roll over perhaps in 2022.
What are the signs of prosperous recovery?
I think we have a growing economy, rising revenues, expanding bottom lines some wage growth,We were weeding out the portfolioThe current Situation has not sparked a feeding frenzy among prospective travelers or a windfall for hotels. We need to see if theincreasing rates are sustainable and the phase of price growth is in line with sales.
The fierce competition
The fierce competition means many properties are selling at a significant premium to their listing price, favouring those on higher incomes or younger first-time buyers whose parents are willing to stump up the cash required to win a bidding war.The house price spiral is feeding into the rental market too.
What are the signs of recovery?
There are few ways the market will pick up and the(occupancy) will go up; one is economic growth; that will happen with less restrictions, travel bans & lockdowns.if there is economic growth job growth wage growth that would be great. especially for hotel business , people have more money to go on vacation, bank accounts are good they pay more in rent, businesses are expanding absorbing office space industrials being absorbed by the companies, increasing bottomlines etc.However, This Situation has not sparked a feeding frenzy among prospective travelers or a windfall for hotels. We need to see if theincreasing rates are sustainable and the phase of price growth is in line with sales.
