Moody's: Stable view for U.S. lodging sector

Moody's Investors Service said it revised the industry sector outlook for the U.S. lodging and cruise industries to stable from negative.

The revision reflects a belief that fundamental credit conditions across the lodging and cruise sectors will be generally stable over the next 12 to 18 months and are unlikely to materially erode or improve, Moody's said.

Improvement in occupancy rates is the precursor to operators' ability to increase average daily room rates, which then leads to a rise in profits, the agency said. Industry-wide, average daily room rates are still declining but have been doing so at a decelerating pace since September 2009, Moody's said.

While the agency said it believes that industry conditions are stable, they are at weak levels.

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