Ahh, budget season… a time every hotelier knows all too well. It’s that annual crunch when departments scramble to justify their numbers, and finance teams work around the clock, pulling their hair out trying to predict next year’s revenue.
Like every other calendar year before it, entering 2025 presents a series of challenges and opportunities for every hotel organization. Labor issues persist, the need for integrated technology continues to become pivotal for operations and guest demands are evolving for every amenity or brand feature.
TPGAG and Kenedix to Purchase Grand Nikko Tokyo Daiba in Japan for JPY106 Billion, Ichigo Hotel to Sell Valie Hotel Hiroshima in Japan for JPY1.785 Billion, EVT Sold Rydges Hobart in Tasmania, Australia, Roma Explorers Inn Sold in Queensland, Australia.
The business world is an eternal cycle of reinvention, where actors adapt to market conditions by establishing a new ecosystem that appears most relevant. Hospitality investors are no exception. Along the way, they’re integrating today’s new data for value creation into a 3.0 model that revives interaction over specialization.
A capitalization rate, or cap rate, is a measure of the income return on an asset, such as hotel or rental property, relative to its purchase price. It is calculated by dividing the net operating income (NOI) of the asset by its purchase price. That’s what this piece is all about. It also must be said from the get-go that understanding cap rates is not so difficult.
MCK Acquires The Mayfair for NZD31.9 Million in Christchurch, New Zealand, The Adelphi Hotel on Flinders Lane Sold for AUD19 Million in Melbourne, Australia, CLAS Divests Somerset Olympic Tower Tianjin in China, Joint Venture between Ascott China and Jin Jiang China, New Mixed-Use Development with Co-Living Units to be Launched in Singapore by 2029.
BirchStreet Systems, a leading provider of cloud-based procure-to-pay solutions for the hospitality industry, announces the extension of a partnership agreement with Sodexo North America, a leading provider of sustainable food and integrated facilities management.
On March 16, 2023, the Federal Council of Switzerland declared an emergency order introducing the Public Liquidity Backstop (PLB)1. In doing so, the Swiss National Bank (SNB) granted a CHF 100 billion loan to Credit Suisse (federal default guaranteed)2. In September of the same year, the Federal Council also presented its (provisional) draft bill concerning the PLB for banks of systemic importance3.
The Fed recently gave us a surprise similar to the one my grandfather used to give my father. My father recently recounted to my son how his grandfather would give him a quarter and a Dr. Pepper each time he saw him. Occasionally, he would surprise him with a half dollar instead, and my father would be thrilled.
In an industry-leading move, Capella Hotel Group announces the acceptance of Digital Payment Tokens (DPTs) at its flagship properties, Capella Singapore and Patina Maldives, Fari Islands. As a leader in luxury hospitality, Capella Hotel Group recognises the growing demand for this as a secure and convenient payment option, and has partnered with dtcpay, a Singapore-based DPT payment service provider licensed by the Monetary Authority of Singapore, to enable guest transactions without any risk of price volatility.
Although the coronavirus pandemic is in the rearview mirror, the hotel industry is still rebounding from the financial distress caused by the severely reduced number of travelers during that time. Years later, some positives have emerged for the industry. Lenders are cautiously optimistic about the potential for growth in hotel and hospitality investments. Increased consumer confidence, a rise in domestic travel, and a growing interest in experiential tourism are driving demand for new supply. Spread between cap rates and borrowing costs are narrow, attracting both institutional and non-institutional investors. Even though the gap between borrowing costs and cap rates are narrow, positive trends in hospitality along with projected interest rate declines make hotels an attractive investment compared to a lot of other real estate asset classes that are either overbuilt or suffering due to macro trends.
Acure Acquires Quest Dubbo Hotel for AUD17 Million in Australia, JPR Acquires The Royal Park Canvas Nagoya for JPY6.5 Billion in Japan, TFE Hotels and Heritage Hotels Announce Strategic Partnership, Hong Kong has Established New Routes to Sendai and Tokushima, Japan.
Welcome to the "exciting" world of hotel accounting policy manuals and internal control reviews. Having a set of "rules for the road" is an essential tool that any hotel needs to be successful. Join us and explore what you need to know to get cracking!
A highlight of the Hospitality Financial and Technology Professionals’ (HFTP®) upcoming Annual Convention is the session, “Navigating Challenges in 2025: How Hotel Owners and Management Companies Can Collaborate Successfully.” Speaking on the panel are top hoteliers John Murray, president and CEO for Sonesta International Hotels Corp. and Blair Wills, president and CEO for StepStone Hospitality. Scheduled for October 23, the conversation will be moderated by Robert Mandelbaum, research director for CBRE Hotels Research and a director on the HFTP Global Board. The Annual Convention is October 23–25 at The Mohegan Sun Resort & Casino.
So what are hoteliers doing to remain competitive in this climate, and what opportunities and challenges are they facing in the road ahead?
The Middle East hospitality industry is at the brink of transformation, driven by technological advancements, shifting consumer preferences, and an increasing focus on sustainability.
It’s that time of year – budget season. "Budget" – even the word sounds daunting to most people. The good news is the budgeting process for your hotel doesn't have to be overly difficult. The key assets when building a budget for your hotel company are:
In just one year, CBRE's Global Hotel Asset Management practice has grown to oversee 40+ properties with 8,500+ rooms worldwide. Our success stems from leveraging CBRE's vast resources and our team's global expertise to deliver unmatched results.
Userguest, the pioneering force in hotel technology dedicated to maximising direct revenue, is thrilled to announce the successful closure of a €2.2M seed funding round. Led by Al Mada Ventures and bolstered by CDG Invest, Saviu Ventures, UM6P Ventures, Kalys VC, Plug & Play and esteemed business angels Philippe Limes and Thane Kuhlman, this investment marks a transformative moment for the hotel tech start-up as it prepares for rapid expansion and groundbreaking product innovation.
The hospitality sector is experiencing major transformations influenced by several key factors. As the industry grows, investors will prioritize opportunities that balance profitability with social and environmental responsibility, ensuring a dynamic and forward-thinking hospitality industry.