Essential strategies for hotel owners to attract buyers and lead to a successful sale of their asset include partnering with the right broker, providing thorough and precise financial records, and adapting to market feedback. This approach streamlines the sale process, builds buyer trust, and helps achieve a successful transaction.
Most owners and prospective buyers try to reduce their hotel’s Capex spend associated with PIP or Renovation work and with good reason- to keep their investment basis as low as possible.
This executive summary will provide novice hotel investors, new owners, and hotel associates new insights into hotel investments in Dubai. The hospitality industry in Dubai presents lucrative investment opportunities for business investors seeking to capitalize on the city's status as a global tourism and business hub. Investing in the hospitality industry in Dubai requires a thorough understanding of the market dynamics, the key factors that drive success as illustrated in Figure 1.0, and the challenges that investors may face.
Corporate Performance Management (CPM) refers to the processes and systems used by organizations to monitor, manage, and improve their business performance. CPM encompasses a wide range of activities, including planning, budgeting, forecasting, financial reporting, and analysis. It helps organizations align their resources and strategies with their goals, measure progress, and adjust tactics to optimize outcomes.
Texas has continued to grow into a top destination for hotel owners who want to expand their portfolio as a result of its strong economy, consistent population growth, vibrant tourist attractions, and diverse markets. Key cities in Texas include Houston, Dallas-Fort Worth Metroplex, Austin, and San Antonio, while the state’s emerging markets are secondary cities/towns around these cities that are often overlooked by hotel investors. This article examines the top cities within Texas in terms of revenue per available room (RevPAR) and provides expert insight into the most attractive and often overlooked submarkets for prospective hotel investors in Texas.
For H1 2024 a total of €655M was transacted, a near fourfold increase on the approximately €173M traded in H1 2023 – this pushed transaction volumes over the past year to an all-time high of almost €790M. Activity was supported by continued good operational performance across the sector and a couple of large deals including the sales of the Shelbourne Hotel and a majority stake in the Dean Hotel Group.
Prime yields have moved modestly higher over the past twelve months but looking forward we expect them to stabilise, boosted by gradually looser ECB monetary policy with the first steps in this journey occurring in June with a 25 basis point interest rate cut. With growing appetite among investors and liquidity in the debt markets, we expect to see a gradual yield sharpening for prime assets as we progress into 2025.
Despite ongoing supply growth, the occupancy and ADR in Irish hotels remained healthy in H1 2024, with only minor softening relative to H1 2023. While RevPAR in Ireland declined by 1.2% to €125 in H1 2024, it was the 3rd-highest level in Europe. In Dublin, the occupancy reached 80% in H1 2024, the second highest in Europe, albeit a minor decline from 2023. This, combined with a 4% drop in ADR, resulted in a 5% RevPAR decrease, although 23% above pre-Covid level in 2019.
510 new rooms were delivered in Dublin in H1 while Premier Inn also opened their first hotel in Cork in January. We estimate there are currently in excess of 1,700 hotel rooms under construction in Dublin (around 6% of Dublin’s room stock) while two hotels in Cork are also due to open later this year. The new supply is welcome to satisfy growing demand, particularly in the Dublin market, albeit the increased competitiveness might constrain occupancy and ADR growth.
Ireland’s economic outlook continues to support the hotel sector. Employment hit another all-time high of 2.71 million while wages (up 4.7% year on year in Q1) are now growing in real terms as inflation (2.2% in June 2024) eases. Tourist trends also continue to be strong. Overnight trips by foreign visitors (over rolling 12-month periods) gradually rose in the first half of the year as has the average spend.
Golf is experiencing a remarkable resurgence! Since 2020, the sport has seen unprecedented growth, with on-course rounds up 9.5% and off-course participation soaring by an impressive 115% compared to 2019. This surge has made golf the fastest-growing sport in America, boasting a total of 45 million participants in 2023.
When someone values a hotel, they are generally attempting to estimate its “Market Value.” My newsletter this month will focus on the term “Market Value” and provide insight as to what this term really means during a sales transaction.
Take my hotel valuation quiz, and if you come within 5% plus or minus of the value, I will send you a free copy of my Hotel Market Analysis and Valuation Software—a $250 value—and recognize your achievement in my next Rushmore on Hotel Valuation newsletter. If you don’t come up with the correct value, I will give you a $200 off coupon so you can purchase the software for $50. So everyone is a winner!!
While many U.S. markets have experienced a slowdown in hotel development amid rising construction costs, increasing financing costs, and general uncertainty, the greater Jacksonville market area has continued to support a robust hotel development pipeline. Factors contributing to this growth include ongoing infrastructure projects in the market, such as the JAXPORT dredging project and Interstate 295 expansion; the ongoing work of the Jacksonville Downtown Investment Authority (DIA) to broaden the city’s appeal as an international business destination; and the availability of land suitable for development.Thus, contrary to other large U.S. markets, Jacksonville did not experience a slowdown of new supply in the post-pandemic period, with over 9% of Duval County’s roughly 20,000 guestrooms being added from January 2021 through June 2024. The following properties represent some of the market’s most noteworthy additions during that period:
Multi-story complexes of similar-looking rooms with cozy lighting, finely-pressed sheets, and a corporate, sterile feel. These kinds of hotels abound, found on every street corner in the U.S. However, research suggests that guests are starting to crave more from their away-from-home experiences.
FIAF Florence Gould Hall Theater was bustling in early June with another successful Boutique Hotel Investment Conference. Kudos to the BLLA team for executing a great event! This article presents some key takeaways from HVS attendees Patricia Shih (HVS Consulting & Valuation) and Marcus Lee (HVS Asset Management & Advisory).
They say everything’s bigger in Texas, and for IHG Hotels & Resorts (IHG), it just keeps getting bigger. Texas already is a booming state for transplants and travelers alike, with its growing population and diverse range of attractions drawing in hundreds of millions of visitors each year. This surge in tourism has led to an increased demand for guest accommodations, with more than 11,000 hotel rooms set to be built in the state this year alone. Economic impact from these new hotels will trickle down into the surrounding community, with guests venturing out to frequent restaurants, bars, shopping locations and attractions.
The world of hospitality has seen remarkable changes over the past few decades, driven by advancements in technology. As a hotel project director with decades of experience, overseeing over 20 hotel openings and renovations, integrating artificial intelligence into the field raises significant questions and opportunities.
When implemented effectively, partnering with the right asset management firm can help maximize investor returns and real estate property values. Asset management is particularly important in this post-pandemic environment where macroeconomic conditions are in constant flux, geopolitical issues continue to intensify, and domestic monetary policy has considerable implications for real estate wealth management.
Several times a month, I get a call that usually goes like this:
The hotel transaction market continues to face significant headwinds. Investors are still concerned about the prohibitive cost of debt, and with the chances of a summer rate cut from the Fed becoming slimmer, expensive debt may remain for the foreseeable future. Additional challenges to getting deals done are the bid-ask spread, rising operational costs, and extensive change-of-ownership property improvement plans (PIPs). As ownership groups consider placing their hotel assets on the market, they should consider how these headwinds are affecting buyer underwriting so that they have realistic pricing expectations.
Effective financial management is paramount for the success of a hotel business. One of the critical aspects of financial management is budgeting, a process that traditionally involves significant time, effort, and coordination among various departments within a hotel organization. However, with the advent and adoption of modern budgeting technology, hoteliers can streamline their annual financial budgeting processes and dedicate fewer resources toward building an accurate budget.
On May 18, Otelier is once again asking hotel leaders to come together to shine a spotlight on the dedicated overnight crews that keep our establishments running seamlessly through the night. We have several ways you can recognize their hard work this year, including nominating exceptional team members for 2024 Night Auditor of the Year.
Luxury hospitality epitomizes excellence in every facet of its operation, striving for unparalleled superiority in design aesthetics, offering incomparably attentive service, presenting the most exquisite culinary delights, and providing an exceptionally rejuvenating spa experience.