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Recovery from the pandemic resulted in fast improvement of hotel market conditions and is now considered a strong market. Because of this, the owners of
Recovery from the pandemic resulted in fast improvement of hotel market conditions and is now considered a strong market. Because of this, the owners of the Bear Hub Resort are weighing the options of building another resort in the Southern Interior of BC. However, the resort's financial advisor explained that it is dangerous to rely on irrational exuberance and added that from the revenue management point of view, it would be better to a. decrease the hotel room rates since the market is strong. b. invest in building as many hotels as possible in Okanagan Valley. c. take on large bank loans and increase the number of units as much as the owners can afford since the repayment of such loans covers a long period. d. be cautious about building more units because market conditions follow cyclical patterns and may worsen
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