The document provides an overview of the hotel industry in the United States. It discusses how the industry was impacted by the economic downturn in 2008-2009 but is now showing signs of recovery. Key points include occupancy rates and average daily rates increasing in June 2010 compared to the previous year. The outlook is for continued growth over 2010-2011, with occupancy rates predicted to rise to over 55% and demand for hotel rooms to outpace new room supply. The recovery is expected to continue into 2011 as stimulus measures take effect.

1. APPENDIX A--Background
The Hotel Industry In The United States
by Joel N. Morse, Ph.D.
INTRODUCTION
The hotel industry of the United States has experienced
slowdowns in the year 2009 because
of the recent economic slump. But slowly the industry is now
recovering from the losses
incurred earlier. The outlook for growth of the hotel industry in
the United States is expected
to be positive at the end of the year 2010 or by the middle of
2011. The performance of the
three key factors that represent the growth of the United States’
hotel sectors are discussed
below with respect to the year 2010. Several other topics related
to the growth and failures of
the hotel industry of the United States are discussed, as well as
metrics that are used in this
industry.

2. CURRENT SCENARIO
Due to the economic situation that began in 2008, certain hotels
in some of the most
expensive cities of the United States dropped the prices of their
hotel rooms to revive
occupancy rates. Marriott and Hilton are two such major chains
of hotels which reduced
room tariffs in order to overcome their losses.
PERFORMANCE OF THE HOTEL INDUSTRY DURING JUNE
2010
During June, 2010, the hotel industry in the United States
experienced some increase in the
performance of several measures of hotel occupancy and
profitability. In year-on-year
measurements of the hotel industry reported that there was an
increase of 1% in the average
daily rate (ADR) at the end of the month, leading to US$98.33.
The occupancy rate (OR)
also increased, to 65%. 1
Occupancy for June, 2010

3. During June, 2010, some of the highest ranked markets of the
United States economy marked
an increase in their occupancy rates. The lead was taken by
Oahu Island, Hawaii with an
increase from 61.3% to 78.8%. It was then followed by
Minneapolis-St. Paul, Minnesota-
Wisconsin and Denver, Colorado from 55.2% to 71.6% and
61.3% to 76.6% respectively.2
1 STR Reports US Hotel Industry Performance for June 2010.
Retrieved August 5, 2010, from Asia Travel Tips:
http://www.asiatraveltips.com/news10/227-
USHotelIndustry.shtml
2 STR Reports US Hotel Industry Performance for June 2010.
Retrieved August 5, 2010, from Asia Travel Tips:
http://www.asiatraveltips.com/news10/227-
USHotelIndustry.shtml
0
10
20
30

4. 40
50
60
70
80
90
Pre-June Period
During June Period
But overall, the hotel industry in the United States showed
mixed results. San Francisco,
California reported the an increase in three key metrics of
performance. For example, the
occupancy rate increased to 78% from 65.9%. Miami - Hialeah,
Florida also showed positive
results. Its occupancy rates jumped to 63.3% from 53%, and
Nashville, Tennessee increased
from 46.2% to 57.3%. However, certain markets of hotel
industry in the United States
showed a decrease in their occupancy rates. The market with the
highest decrease in the

5. occupancy was Louisiana in New Orleans which fell from 63%
to 53.3%. Similarly,
Washington, DC reported a decrease of 75.2% to 66.3%. This
was followed by Dallas, Texas
where there was a decrease from 58.8% to 50.1%. 3
FORECAST OF US HOTEL INDUSTRY
3 STR Reports US Hotel Performance for the Week Ending June
5 - 2010. Retrieved August 5, 2010, from Hotel
News Resource:
http://www.hotelnewsresource.com/article46476.html
Industry sources acknowledge that the U.S. hotel industry will
exhibit improved performance
in several key metrics by 2010-2011. It has been predicted that
the room occupancy rate will
increase to 55.8%. In the United States, the demand for rooms
is expected to increase by
about 4.1% and the supply to service this demand is expected
only to grow by 2.2%, which
means that there will be a situation of excess demand at the
margin. According to industry

6. experts , the recovery of the hotel industry will be turning
positive during the second or the
third quarter of this year. The industry will also experience an
increase in three basic
performance measures during the year 2011. 4 The statistics of
occupancy, revenue per
available room and average daily rate are metrics or
performance measures of interest. 5
US HOTEL OCCUPANCY RATES
The United States’ hotel industry should experience any upturn
positive signs before the
commencement of the year 2011, governmental stimulus
measures and "animal spirits"
ameliorate the recession that hit the world wide economy during
2008. 6
4 Stronger US Hotel Industry Forecast for 2010, 2011 (2010,
April 8). Retrieved August 5, 2010, from Hotel
News Resource:
http://www.hotelnewsresource.com/article44978.html
5 Urie, R.S. (2010, January 27). STR: US hotel industry ends

7. '09 with double-digit RevPAR drop. Retrieved
August 5, 2010, from Bright Hub:
http://www.hotelnewsnow.com/Articles.aspx?ArticleId=2573&A
rticleType=0
6 Slow recovery seen for U.S. hotel industry (2010, January
27). Retrieved August 5, 2010, from Reuters:
http://www.reuters.com/article/idUSTRE60Q4G920100127
During the period when the supply of the rooms was being
handled, the occupancy rates of
the hotels in the United States had fallen marginally as
compared with the previous records.
However, it has been forecasted that during this year the
occupancy rates are going to
increase to 55.4% as compared with the last year’s occupancy
rate, which was 55.1%. But
this statistic which has been forecasted for this current year is
somewhat below the 20 year
average which is approximately 62.8%. Hoteliers in the United
States state that pricing
power will return once they see a high rate of occupancy

8. prevailing in the industry, which
should emerge in three to four years. 7
CONCLUSION
To conclude, the United States hotel industry is currently
reacting to the economic crisis of
2008. But with time, the industry will be growing in most major
aspects.
REFERENCES
Sharkey, J. (2010, July 5). Credit Card Hackers Visit Hotels All
Too Often. Retrieved August
5, 2010, from New York Times:
http://www.nytimes.com/2010/07/06/business/06road.html?_r=1
7 Slow recovery seen for U.S. hotel industry (2010, January
27). Retrieved August 5, 2010, from Reuters:
http://www.reuters.com/article/idUSTRE60Q4G920100127
Slow recovery seen for U.S. hotel industry (2010, January 27).

9. Retrieved August 5, 2010,
from Reuters:
http://www.reuters.com/article/idUSTRE60Q4G920100127
STR Reports US Hotel Industry Performance for June 2010.
Retrieved August 5, 2010, from
Asia Travel Tips: http://www.asiatraveltips.com/news10/227-
USHotelIndustry.shtml
STR Reports US Hotel Performance for the Week Ending June 5
– 2010 (2010, June 11).
Retrieved August 5, 2010, from Hotel News Resource:
http://www.hotelnewsresource.com/article46476.html
Stronger US Hotel Industry Forecast for 2010, 2011 (2010,
April 8). Retrieved August 5,
2010, from Hotel News Resource:
http://www.hotelnewsresource.com/article44978.html
Urie, R.S. (2010, January 27). STR: US hotel industry ends '09
with double-digit RevPAR
drop. Retrieved August 5, 2010, from Bright Hub:
http://www.hotelnewsnow.com/Articles.aspx?ArticleId=2573&A
rticleType=0
US hospitality industry in doldrums (2010, May 17). Retrieved
August 5, 2010, from Press
TV:

10. http://www.presstv.ir/detail.aspx?id=126742&sectionid=351020
3
Definition: Evaporation is a type of vaporization that occurs on
the surface of a liquid as it changes into the gas phase. The
surrounding gas must not be saturated with
the evaporating substance.
How evaporation is related to Chemical Engineering process?
Evaporation is regularly used in the food processing, chemical,
kraft paper, and pharmaceutical industries to produce liquid
concentrates. ... Evaporation can be used as the initial step in
producing a dried product if the liquid concentrate then
undergoes a drying process such as spray drying.
There are two types of vaporization: evaporation and
boiling. Evaporation occurs at temperatures below the boiling
point, and occurs on the liquid's surface.
How the process goes:
Evaporation is a phase transition from the liquid phase to the
gas phase that occurs at temperatures below the boiling point at
a given pressure.
For molecules of a liquid to evaporate, they must be located
near the surface, be moving in the proper direction, and have
sufficient kinetic energy to overcome liquid-phase
intermolecular forces.
Boiling is a phase transition from the liquid phase to the gas
phase that occurs at or above the boiling temperature.
Boiling is the rapid vaporization of a liquid and occurs when a
liquid is heated to its boiling point. A liquid’s boiling point is
the temperature at which the vapor pressure of the liquid is
equal to the pressure exerted on the liquid by the surrounding
environment (air).

11. How to relate to chemical engineering in specific:
Spray drying is a method of producing a dry powder from a
liquid or slurry by rapidly drying with a hot gas. This is the
preferred method of drying of many thermally-sensitive
materials such as foods and pharmaceuticals.
Calculate Evaporation Using Mathematical Equations
Where:
· E = Evaporation Rate (Gallons/Day)
· A = Pool Surface Area (ft2)
· W = Wind Speed Above Pool (mph)
· P = Water's Vapor Pressure (mmHG) at Ambient Temperature
· T = Temperature (°F)
The following equation was developed by Warren Stiver and
Dennis Mackay of the Chemical Engineering Department at the
University of Toronto. It can be used to estimate evaporation
from the surface of a pool of liquid that is at or near ambient
temperature. Please note that the equation as been modified
from its general form to be applicable to calculating evaporation
from swimming pools.

12. Evaporation
In Chemical Engineering
DEFINITION
Evaporation is a type of vaporization that occurs on the surface
of a liquid as it changes into the gas phase. The surrounding gas
must not be saturated with the evaporating substance.
There are two types of vaporization
evaporation and boiling. Evaporation occurs at temperatures
below the boiling point, and occurs on the liquid's surface.
Parameter
Why choose evaporation?
Social benefit of evaporation
How the process goes?

13. How is it related to Chemical Engineering?
Comtrarison with other similar separation process
Application
Benefits of evaporation
Compare with similar separation techniques
Sheet1Pool Surface Area (ft2)400Wind Speed Above Pool
(mph)1Water's Vapor Pressure (mmHG) at Ambient
Temperature23.8Temperature (°C)25Temperature
(°F)77Evaporation Rate (Gallons/Day)70.0488834773
Instructions
A component of any business valuation report is a study of the
industry within which the firm operates. You will present an
industry paper, which could be inserted into a larger report (a
full valuation report, or an offering memorandum, or a
document to accompany a fund-raising presentation) if your
client retained you for that. For this assignment, you will create
a report on the Electric Car Industry. It relates to another
assignment in the course, the valuation of Tesla. However, you

14. will turn this industry component in separately, using the
submission link here in the ASSIGNMENT FOLDER.
Turn in here, one WORD or pdf document. And spreadsheet
work must be pasted into the document, because TURNITIN
only looks at WORD or PDF formats.
Aim for 5-7 typed pages (double-spaced), not including
Exhibits.
NOTE:
The pdf is an example of industry paper.