Special Considerations The GDP growth rate changes during the four phases of thebusiness cycle: peak, contraction, trough, and expansion. In an expanding economy, the GDP growth rate will be positive because businesses are growing and creating jobs for greater productivity. A period of contraction ...
Hotels are a form of property that is very sensitive to economic activity due to the type ofleasestructure inherent in the business. Renting a hotel room can be thought of as a form of short-term lease that can be easily avoided by hotel customers should the economy do poorly. On the ot...