On the front lines of rising seas and extreme weather, the hospitality and tourism industry recalculates real estate and insurance risks Memorial Day weekend ushers in the unofficial start to summer tourism season, and the strong economy suggests this may be an especially great season for the hospitality industry. But, while throngs of vacation travelers head for sunny beachfronts, it?s also the start of the hurricane season, which, as the impacts of climate change continue to accelerate, will become a growing risk to the industry.
As homeowners, businesses, and corporate America adjust to the realities of a world shaped by climate change, coastal real estate faces increasing risk. Hotels have been riding a wave since 2009. According to an analysis by industry data firm STR, RevPAR?a metric that measures revenue per hotel room?has risen for 105 of the last 106 months, and overall occupancy hit a record of 66 percent last year. A Wall Street Journal report finds overcapacity, an ?excess of success,? may be one of the hospitality industry?s biggest challenges going forward. But that risk may be dwarfed by the substantial portfolio of resorts and hotels located in at-risk coastal areas. Few industries will face the reality of rising sea levels more directly than the hotel industry, which has prime assets located on waterfronts across the country and around the world, putting it in the crosshairs of a rising number of extreme weather events.
?[The hotel industry has] to d...