Sponsored: Ashford 2025 Travel and Lodging Outlook
By Sponsored
U.S. Economic Growth Improving
Closing out a year of strong growth, the U.S. economy grew at a 2.3% annualized rate in the final three months of 2024 and is projected to remain positive in 2025, according to the Atlanta Federal Reserve’s GDPNow Model, as of Jan. 28, 2025.
Potential headwinds to this growth include fiscal policies, global economic conditions, and domestic economic drivers. However, resilient consumer activity continues to provide a strong foundation for economic momentum.
The Visa Spending Momentum Index has shown consistent growth in consumer spending throughout Q4 2024 and any softness seems to be decreasing. Notably, discretionary spending – which includes non-essential purchases such as dining out, entertainment, and luxury items – has experienced a significant uptick, suggesting increased consumer confidence and a willingness to spend on non-essential goods and services. This upward trajectory in discretionary spending aligns with broader economic indicators pointing toward a robust 2025.
For instance, during the seven weeks starting Nov. 1, 2024, American consumers increased their spending by 4.8% compared to the previous year, with online shopping seeing a 7.1% year-over-year increase (Visa, U.S. Spending Momentum Index, Jan. 8, 2025). According to Deloitte’s recent U.S. Consumer Spending Intentions Index, spending in 2024 on lodging accommodations and leisure travel continues to outpace growth in overall consumption.
We believe that rising consumer confidence is a tailwind for domestic leisure travel demand, and we expect to see positive momentum continue in 2025. If inflation continues to moderate this year, it could provide the Federal Reserve with the flexibility to consider interest rate cuts to support economic growth. Consensus points to a cautious approach to easing, with some analysts projecting two additional rate cuts in 2025. This will likely stimulate economic growth and lower capital costs for hotel investors, positively impacting the lodging industry.
Ashford Inc., or AINC, is a leading alternative investment management headquartered in Dallas, Texas. Ashford owns and/or manages more than 156 commercial real estate assets and a portfolio of strategic operating businesses that provide services to the real estate industry. Ashford’s principals have a long track record of success and over 250 years of experience investing in and operating real estate.
Ashford Securities LLC is a managing broker/dealer and FINRA member firm. Our parent company is AINC. Ashford Securities LLC is focused on the distribution of alternative investment products through financial intermediaries. Our goal is to offer highly differentiated investment solutions that intend to provide investors with diversification, income, and attractive returns. We pursue this goal through the thoughtful design of investment products, providing excellent customer service, and building long term relationships with all of our stakeholders.
Ashford Inc. is a sponsor of Alts Wire, and the article was published as part of their standard directory sponsorship package.
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