10 Effective Cost-Saving Strategies for Hotels
Inflation, labour issues, and rising cost to meet the needs of an increasingly tech-savvy and sophisticated guest journey.
By Patrick Landman, CEO & Founder, Xotels
Opinion Articles
Q1 2023 Major U.S. Hotel Sales Survey
With continued elevated levels of inflation and interest rates, and fears of an impending economic recession, the U.S. commercial real estate industry continues to find itself in choppy waters. The recent stunning and swift collapse of Silicon Valley Bank (SVB), and subsequent failures of Signature Bank (SB), and Credit Suisse Group AG (CS) has created a perceived credit crunch now rippling across the global financial system.
By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)
Does opportunity knock for hotel investors?
Investors have been waiting in the wings of the hotel sector since the start of the pandemic, certain that there would be bargains to be had in the form of distressed assets. In the event, government support and understanding banks (we understand banks don’t want to find themselves owning hotels) kept everyone in business.
By Alex Sogno, CEO, Global Asset Solutions
Barriers to Hotel Ownership for Women and How To Break Them
After 25 years in the healthcare industry, I made a significant career change.
By Tracy Prigmore, Founder of TLTsolutions and She Has a Deal, She Has a Deal
How the Asset Manager has Moved from Elective to Essential
It is said that to truly learn a foreign language, one must leave the classroom and immerse themselves in that language day to day, preferably in a country where it is spoken. Language is not just vocabulary, it is the interpretation that comes from also understanding culture, feel and colloquial nuance. The same can be said of many professions, employing a specialist language that can sometimes feel designed to keep the outsider at bay.
By Alex Sogno, CEO, Global Asset Solutions
If Hotels are a Good Long-Term Investment, Why, and Where?
A recent Globe Street article chronicles observations from industry professionals that hotels are now a ‘hot’ asset class and a good long-term investment due to a ‘compelling growth story’.1 This is excellent news for CBRE hotel clients who own or invest in hotel property if near-term economic problems do not become long-term ones. The headliners include historic inflation with associated interest rate increases and a slow-growth economy elevating recession probabilities. Erosion of savings and growing debt loads signal softening consumer discretionary spending while the latest earnings reports don’t bode well for corporate travel budget health. The assertions in the Globe Street article may be correct although empty without the support of a well-reasoned growth story. I agree with the claim that hotels are a good longterm investment, and I have a growth story that supports the claim.
By Jack Corgel, Managing Director, CBRE Hotels’ Americas Research, CBRE Hotels
10 Inspections and Logs Every Hotelier Needs in 2023
Running a hotel is an intricate and demanding task, where guest satisfaction and reliable service are of utmost importance. Hotel general managers and owners must navigate numerous challenges daily, balancing multiple responsibilities while maintaining a high level of service. The hospitality industry is ever-evolving, with new technologies, changing customer preferences, and an increasingly competitive landscape. As a hotelier, staying ahead of these challenges and providing exceptional service can be the key to success.
By Garrett Peppelman, Head of Growth, Xenia
Hotel “Broker” vs. Trusted Advisor
When I first started out in hotel brokerage back in the late 1980s, the market was unsophisticated and had not adopted the fiduciary focus that was required to establish trust. Consequently, the term hotel “broker” had mostly a negative perception. Over the course of the past 35 years, for many professionals, “broker” has moved to a role as a trusted advisor for those who passionately make paramount their fiduciary responsibilities. In this article, I would like to distinguish the difference between the negative connotation of “broker” from the role of a trusted advisor.
By Robert J. Webster, Vice Chairman, President CBRE Hotels Investment Properties, CBRE Hotels
H&LA’s Takeaways From the Hunter Hotel Investment Conference
H&LA’s Adam Zarczynski attended the Hunter Hotel Investment Conference in Atlanta in March. Here are some key highlights from the conference.
By Adam Zarczynski, CHIA, Associate, Hotel & Leisure Advisors (H&LA)
Hunter Hotel Investment Conference: Revenue Strategy Panel Recap
Our team at Cogwheel Marketing attended the 2023 annual Hunter Hotel Investment Conference for a consecutive year and we wanted to be sure to share with our network the 10 Key Takeaways we extracted after packing in 3 days of education, collaboration and relationship building with hotel industry experts.
By Stephanie Sparks Smith, CEO & Digital Matriarch, Cogwheel Marketing, Cogwheel Marketing & Analytics
Hunter Conference Takeaways – A Well-Performing Hotel Industry Lives Through a Tough Financing Environment
Another exceptional Hunter Conference is in the rearview mirror, with much thanks to Lee Hunter and his team, as well as the Atlanta Marriott Marquis, for pulling off a terrific event. Never a dull moment in the hotel industry, which is why many of us never leave the sector, with attendees having such varied opinions on how this year may play out.
By Rodney Clough, President - HVS Americas, Denver, HVS
Sponsorship Can Help Close Generational Wealth Gap for Women, Minorities
When I began investing in real estate, I focused on single-family rentals because I did not know that I could actually buy a commercial building with my level of income and savings.
By Tracy Prigmore, Founder of TLTsolutions and She Has a Deal, She Has a Deal
Key Takeaways from the GF Hotels Forum, Q1 2023
It’s a difficult lending environment across the nation at the moment, but RevPAR is expected to continue to rise in the foreseeable future, particularly supported by ADR growth. Debt, while very expensive, is available, and one lesson learned from the pandemic is the importance of sponsorship, including relationships with the brands.Below is the SWOT analysis for the U.S. hotel real estate and investment industry as outlined at the GF Hotels Forum in Towson, Maryland.
By Jerod Byrd, Senior Vice President, Partner and Director of Operations of the HVS Philadelphia Consulting and Valuation division, HVS
New York City’s 2018 & 2021 Hotel Zoning Amendments
Hotels are a vital part of New York City’s economy, accounting for approximately $13 billion of revenue per year. In recent years, however, the City Planning Commission has adopted certain amendments to New York City’s Zoning Resolution in an attempt to curtail hotel development. These changes have been top-of-mind for owners and developers involved in the New York City hotel real estate market.
By Cole Masler, Project Manager, New York, HVS
The Miami Market Rises to the Occasion
Nicknamed “the Magic City,” Miami has maintained its position as a world-class destination despite the national economic challenges experienced since 2020. At the height of the pandemic, Miami’s favorable weather and relaxed restrictions attracted new residents and businesses from all corners of the country and the world. In the post-pandemic era, the greater Miami area remains a top U.S. market. In 2022, hotels in this market realized year-over-year growth in all metrics across each submarket. Furthermore, new hotel supply continues to be added, with numerous recently opened hotels and countless proposed developments.
By Emeldina Paratusic, Project Manager, Miami, HVS
U.S. Real Estate Market Outlook 2023
High interest rates and a recession will make 2023 a challenging year for commercial real estate. Though inflation eased in late 2022, it was still running at more than 7%. The Fed will continue raising rates until it sees a marked reduction in inflation nearer to its 2% target. Weakening fundamentals and higher cost of capital will generally lower asset values.
By Richard Barkham, Ph.D., Global Chief Economist, CBRE Hotels
Recent Trends in Washington, D.C.’s Luxury Hotel Market
According to data compiled by STR, in recent years, the luxury segment has fallen 2–5% behind the Washington, D.C. market average in occupancy, while luxury rates have paced roughly $150 to $200 above average. This rate difference is largely due to a few luxury hotels that perform at a higher rate threshold than the remainder of the luxury class, including the Four Seasons, the Waldorf Astoria, both Ritz-Carlton properties, the Hay Adams, and the St. Regis. These higher-rated hotels make up 15% of the total luxury room supply in the District.The 2022 market-wide operating performance for District of Columbia hotels was roughly 62%, at an ADR of just above $240. The 2022 RevPAR falls more than $20 below the 2019 level. The luxury hotel segment, which comprises around 30 hotels, also did not fully rebound to the historical 2019 RevPAR levels in 2022. However, ADR for this segment grew to roughly 115% of the 2019 level.
By Chelsey Leffet and Caroline Dioso
Six opportunities for global hotel development
In light of the tumultuous global challenges which have dramatically affected the hospitality industry, now more than ever we need to fully understand the reality of developing properties in international contexts. For owners, developers, investors, managers and other professionals involved in hotel development and investment, the operating environment has shifted to such a degree that as we begin 2023 we need to consider how to respond to the latest challenges. For every challenge, however, there is opportunity. Here are six opportunities for global hotel development projects.
By Debra Adams, Program Director, Master’s in Real Estate, Finance and Hotel Development, Glion
Will Traditional Hotel Operators Ditch Beds for Data Banks?
The hotel sector, until the past few decades, had been largely unchanged for hundreds, if not thousands of years. But the growth of models that have allowed operations to be split away from ownership has caused a shift in the industry that is still playing out.
By Alex Schneider and Alex Sogno
Managing the Whole Asset
Before March 2020, hotel operations varied hugely. The sector was on a high. STR reported a record year in 2019 and, although costs and supply were both rising, it seemed that a cyclical dip was being pushed ever farther back, and the good times could continue indefinitely.
By Alex Sogno, CEO, Global Asset Solutions