...Competing Macro Factors: Fitch Ratings expects currency translation losses caused by U.S. dollar strength to temper systemwide RevPAR growth for most lodging C-Corps by 100 to 200 basis points (i.e. 4%¡6% versus 5%¡7% in constant currency). The strong dollar will also lower inbound international visitation rates to the U.S. and prompt more Americans to travel abroad. Lodging REITs' predominantly domestic focus protects them from currency losses, but not lower visitation rates. The global focus of most lodging C-Corps will balance the effect from lower net visitation to the U.S. Lower oil prices should help lodging demand and provide cloud cover for price increases, given higher discretionary income and lower transportation costs. Lower Oil Mostly Positive: The roughly 50% drop in oil prices since summer 2014 is expected to provide a net benefit to U.S. lodging demand. Lower oil prices should increase consumer discretionary income and reduce gasoline and jet fuel costs, making travel more...
