Oil Spike Could Derail Hotel Recovery

 If oil prices reach $125 per barrel this year, the U.S. lodging industry should see minimal disruption, according to a new report by PKF Hospitality Research, Oil Prices and Lodging Risk. But prices above that will have an increasingly negative effect on the industry, the report posits; at $150 per barrel, the industry's recovery could be seriously affected. The report's analysis was based on economic data from Moody's Analytics, specifically two "oil spike" scenarios the company created in April. PKF based revenue-per-available-room estimates on these models, although Moody's highlighted the low probability of the scenarios occurring. "The price of oil should be on everyone's radar when planning for the future," concluded the report. The price of oil fell slightly on Monday, to about $98 per barrel.