Development Opinion Articles - Hospitality Net

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Opinion Article

August 28, 2019

10 Powerful Ways to Use Instagram for Real Estate Marketing

Real estate and Instagram are a match made in marketing heaven. Pretty much everything about the social network is well suited for real estate marketing: its photo- and video-based content formats make it easy to showcase properties; its mobile-first nature easily incorporates location data and geo-targeting; its huge user base—now numbering more than 1 billion monthly active users—enables reach across many demographics and geographies; and its integration into parent company Facebook’s advertising platform provides sophisticated campaign targeting options.

By Anthony Del Gigante, Chief Creative Officer, MDG Advertising

Opinion Article

August 27, 2019

Food and Beverage Boosts Hotel Revenue

According to an AMPM Hotel supply statistics (October 2018), approximately 150,000 new hotel rooms are expected to enter London by 2020. Research by Knight Frank indicates that investment in the UK hotel industry reached £7.4 billion, demonstrating a 29% year-on-year rise and a £1.7 billion increase in 2018 alone. This extraordinary growth was due to a 50% increase in international investment, with overseas buyers accounting for £4.9 billion invested into the UK hotel market with Asian investors such as mainland China, Singapore and Hong Kong being principally responsible.

By Korosh Farazad, Founder & Chairman of Farazad Group of Companies and Member of Board for Trinity Hospitality Group, Farazad Group Ltd.

Opinion Article

August 7, 2019

Q2 2019 U.S. Lodging Market Update

With 121 consecutive months of growth through Q2 2019, the U.S. economy is now in record territory for the longest expansion period in history. The decade long economic expansion has been fueled in part by job growth, record low unemployment rates, and low-interest rates in the capital markets. During the first half of 2019, America has continued to add jobs, albeit at a slower pace compared to last year. U.S. consumer confidence remains vigorous and stock market indices continue to set record high levels. To mitigate the risks of slower global growth and trade-policy uncertainty, during the near term, the Federal Reserve is widely expected to reduce interest rates. While current economic indicators are a healthy backdrop for the lodging industry, the duration of this expansion has rendered many economic pundits now fearful of the U.S. entering a recessionary environment during the near term. With this said, most anticipate that when a recession does occur, it will be less severe than the Great Recession of 2009-2009.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

Opinion Article

July 11, 2019

Digital Marketing Timeline For New Hotel Opening

A new hotel opening or changing of flags has so many moving parts. As an owner or manager overseeing this transition, you are likely wearing multiple hats. Here is a hotel digital marketing timeline for opening hotels to ensure you are building your website presence and a healthy channel mix that has reduced OTA dependency later down the road.

By Stephanie Sparks Smith, CEO & Digital Matriarch, Cogwheel Marketing, Cogwheel Marketing & Analytics

Opinion Article

July 4, 2019

Opening a Hotel? An Asset Manager Can Help!

Hotel openings are an elaborate affair that seek focused inputs from the ownership at a pre-opening stage. While the hotel management company and operations team are largely responsible for the pre-opening preparation, the owner also has his/her tasks cut out. Here's a look at the very basic set of expectations from an owner of a managed-hotel at this stage:

By Saurabh Gupta, Managing Partner, Hotelivate Private Limited

Opinion Article

July 3, 2019

Navigate the Pitfalls Motel Valuations – Part 2

In Part 1, I discussed the importance of determining the true revenue and expense levels of a property, which may not be overtly evident by statements or tax returns provided by a motel owner. When reconstructing a true (or as close to true as possible) statement, this may diminish the reliability of the direct capitalization method and discounted cash flow in the reconciliation if these opinions are based on estimated statements. Conversely, this heightens the importance of the RRM if the rooms revenue is the most documented line item, as well as the importance of the sales comparison approach; moreover, these two may be the most highly relied-upon methods by sellers and buyers in the motel investment space.

By Rodney Clough, President - HVS Americas, Denver, HVS

Opinion Article

June 3, 2019

Gonna Take Some Time To Do The Things We Never Had: Why Africa Needs A New, Local-based Strategy Right Now

INTRODUCTION (I HEAR THE DRUMS ECHOING TONIGHT) - Ever since its release in '82, Africa by TOTO became a quadruple platinum record, with around 300M streams on Spotify, 400M YouTube views and even a solar-batteries-powered sound installation in the Namib Desert, "to keep TOTO going for all eternity". But what makes this song so special after all these years? I doubt it's simply because of the '80s wave of nostalgia we are experiencing and, even though TOTO was (and still is) a super-band of extremely skilled musicians, there must be a deeper reason. Most genetic experts today agree that the entire humankind originated in Africa, and that all non-African people descend from what anthropologists describe as the "Out of Africa Migration", happened some 70,000 years ago. It is undeniable, therefore, that this continent does strike a chord in us. The reason, quite simply, seems to rely on our DNA.

By Simone Puorto, Head of Emerging Trends and Strategic Innovation, Hospitality Net

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The next-gen metrics that move hotel P&L

Hotel tech has changed what's possible – and measurable. RevPAR and ADR aren't enough; discover the metrics that really matter.

Opinion Article

May 17, 2019

The growth of asset management: The importance of understanding both points of view

Asset managers are a conduit between a hotel’s owner and the company operating the hotel, writes HOSPA’s Jane Pendlebury, and as such they add great value to both parties. One key to their success is the ability to carefully manage both parties’ expectations.

By Jane Pendlebury, CEO, HOSPA

Opinion Article

April 13, 2019

Bigger isn’t better: Investors favor boutique stores and hotels

Bigger is better, right? That's why there are more hotel mergers and acquisitions in recent years; there are also many hotel chains are building larger loyalty programs to pull in more travelers. Besides hotels, Airbnb and OTAs (online travel agents) also want to get bigger through acquisitions.

By Linchi Kwok, Professor and Department Chair, CAL Poly Pomona

Opinion Article

March 14, 2019

3 Important Reasons Why Hotel Asset Managers Have Become Such Hot Property

Thanks to the increasing complexities of today's hospitality market where disruptors seemingly turn up out of nowhere and operators consolidate at a fast rate - it is easy to understand why.

By Fred Novella, Managing Director Hotel Asset Management, Global Asset Solutions

Opinion Article

March 14, 2019

Synchronised for Success - The Red Sea Development Company

In the lead up to the 2019 Arabian Hotel Investment Conference (AHIC), we asked a number of industry partners how they synchronise for success.

By Jay Rosen, Head of Finance and Investments, The Red Sea Development Company, MEED

Opinion Article

March 6, 2019

Five Practices That Ensure Hoteliers Make the Most of Property Updates

Planning for a major property renovation can give any hotel management team a major headache. Still, keeping your hotel property fresh and inviting increases guest satisfaction, leading to more repeat customers, referrals and a major boost in revenue.

By Kacey Bradley, Lifestyle Blogger, The Drifter Collective

The next-gen metrics that move hotel P&L

Hotel tech has changed what's possible – and measurable. RevPAR and ADR aren't enough; discover the metrics that really matter.

Opinion Article

March 5, 2019

Looking Back on the Great NYC Hotel Race

In 1919, two grand hotels were racing to completion. The Hotel Commodore connected to Grand Central Terminal and owned by The New York Central Railroad officially opened on January 28, 1919. Named after 'Commodore' Cornelius Vanderbilt, the founder of The New York Central Railroad System, it had a whopping 2,000 guestrooms. It also housed the single largest room ever constructed.

By Larry Mogelonsky, Partner, Hotel Mogel Consulting Limited

New York, New York, United States

Opinion Article

February 25, 2019

INTERVIEW: Hotel Investment Trends in Europe

If you're thinking of investing in the hotel sector in Europe where should you be looking to put your money? Patrik Hug, Senior Consultant, Advisory & Valuation Services at Christie & Co based in Munich, Germany, says much depends on how risk averse the potential investor is.

By Stuart Pallister, Head of Academic Editorial Content, EHL

Opinion Article

February 14, 2019

Why Retail Owners Are Partnering With Hotels

Recently, my partner, Guy Maisnik, and I spoke about hotel retail mixed-use development with Kelsi Maree Borland of GlobeSt.com. Her article, Why Retail Owners Are Partnering With Hotels ran with the subtitle, With retail evolving to be more experience-driven, retail owners are finding the benefits of adding boutique hotels to shopping centers.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

Opinion Article

January 17, 2019

Hotel Cap Rates Hold Steady - Values Under Pressure

Following a year of robust transaction activity, hotel capitalization rates remain stable, while hotel NOI and values are under pressure due to slowing RevPAR growth and increasing operating expenses. This article looks at hotel sales and capitalization rate trends, the impact of slowing RevPAR growth on hotel values, and the outlook for 2019. [1]

By Suzanne Mellen, Senior Managing Director - Practice Leader, San Francisco, HVS

Opinion Article

January 17, 2019

Possessory Interests in Hotel Real Estate

A possessory interest is created when a private-sector tenant is granted exclusive use of real property (land and/or building) that is owned by a tax-exempt entity, typically a municipality or a state or federal government agency. The right to occupy and use the land and/or building is usually conferred via a lease

By Erich Baum, Senior Vice President, HVS

Opinion Article

January 17, 2019

Many Hotel Sellers Won Big in 2018

On average, hotel prices increased significantly in 2018, as a strong pool of buyers with favorable outlooks kept downward pressure on cap rates. A strong bidding environment for hotels, particularly those in markets where barriers to entry were high and PIPs had already been completed, kept prices strong, resulting in some big wins for hotel sellers that purchased their hotels at the right time during the last downturn.

By Rodney Clough, President - HVS Americas, Denver, HVS

Opinion Article

December 3, 2018

Agree to Agree: Aligning Hotel Owners’ and Operators’ Goals

Hotel owners increasingly rely on hotel management companies to operate their hotels through formalized hotel management agreements (HMA). Separating ownership and operations supposedly benefits both parties: owners are able to invest in hotel real estate and access the professional operating expertise of hotel management companies, while operators can generate important income streams, expand any brands they may have, and earn profits, all without having to invest in the underlying real estate.

By Demian Hodari†, Michael J. Turner, and Michael Sturman

Opinion Article

November 16, 2018

Dual-branded Hotels: Beware Expectations Of Significant Operating Efficiencies

For the past four years the opening of dual-branded properties has been very popular among hotel developers. The perceived benefits of building a property with two or more brands are many:

By Robert Mandelbaum, Director of Research Information Services, CBRE Hotels