‘Another day, another brand’ could well be the catchphrase of our sector, but as with everything in this industry we call home-from-home, it’s never as simple as that. The past couple of decades have seen a rapid evolution away from the owner/operator model, which has kept the sector ticking along for thousands of years, and we’d all be forgiven for feeling dizzy from the shift.
In today's dynamic and complex environment, the task of extending your travel or hospitality services into new markets is fraught with distinct challenges. The hotel and travel industry, characterized by its close-knit community and exclusive dynamics, often poses significant barriers to new entrants. When you introduce your platform into these markets, it's not just about offering a new solution; it's about understanding and integrating into an established ecosystem.
A 363 room hotel and conference center was purchased early in 2021, but one year later, there remained significant inconsistencies between the expected operational goals by corporate and the actual performance of management. The hotel was located in Clarksville, Indiana, just a few miles from Louisville, Kentucky, the home of the Kentucky Derby.
In my life, there are few if any financial moments that have created a lasting positive memory. At least that is how it has been for me. Not too many earth-shattering activities, but one on the money side stands out. So that is what this one is about, one of those moments where a financial miracle happens, and it is at the hand of one of my heroes.
Switzerland is justly famous for many things; from stunning natural beauty to watches and diplomacy but perhaps most notably are their banks. Inscrutable, discrete and going about their business for centuries with a watchful eye over both profit and risk. Perhaps coincidentally, another great Swiss icon is the eponymous multi-faceted Army Knife; an item noted for versatility and adaptability.
Credit Suisse’s recent troubles can partly be put down to a series of scandals that have eroded confidence in this banking giant. Indeed, a company’s reputation can be totally ruined by the uncovering of accounting irregularities. If all companies wish to preserve their image, are they all in the same boat?
As an asset manager, it’s my job to create and manage the relationship between owner and brand, to ensure that all parties are working together towards one goal: a profitable property.
As we head to the end of 2023 and towards 2024, a certain uneasiness rests in the air. Hotels are budgeting to be up in revenue for 2024, albeit at diminished increases relative to the preceding three years. Operators are cautiously optimistic along with their owners. Buyers and Investors stand by as interest rates remain above the average of the last two decades and the economy shifts between slow and moderate speeds.
In our previous article, we shared insights and advice from global hospitality experts on how to make the 2024 hotel budget process as smooth and painless as possible. Here, we share five ways to improve budget accuracy and performance in uncertain times.
Hala Matar Choufany, President & Managing Partner, Middle East, Africa & South Asia at HVS, together with Engr. Suwaidan Al Dhaheri, CEO Imkan Properties, Fahad Abdulrahim Kazim, CEO Lakhraim Group & Millenium Hotels MEA, and Michael McGovern, Director Compass Project Consulting, discuss the topic of building hotels in a challenging environment within the Middle East. Hala Matar Choufany shares her view on the current and future hospitality market in the region. The main takeaways are:
In this piece, you will discover highlights from the 7th Hospitality Finance & Economics Conference jointly organized by NUS Institute of Real Estate & Urban Studies and EHL Hospitality Business School, including research paper presentations, panel discussions, fireside chats, and a keynote address exploring the latest advancements in hospitality and real estate.
E-procurement has a new ally in AI. Recently introduced generative AI tools, like ChatGPT, have taken the business world by storm. And they have the potential to supercharge e-procurement and potentially even make up for a significant part of the losses that were inevitably incurred by the impact of the last few years.
Hotel supply grew a meager 0.5% in 2022 and is forecasted to grow just 1% on average for the next three years, according to a CBRE June report.Meanwhile, demand is expected to exceed supply with some projections showing demand increased as high as 2%.
The hospitality industry has long been a cornerstone of the global economy, providing millions of jobs and contributing significantly to local economies.
Heading into the fourth quarter of 2023, economic uncertainty and cautious optimism can characterize the past nine months. Many are becoming increasingly frustrated by the ongoing transition into a lenders’ market (compared to the borrowers’ market we have experienced for over a decade). We continue to navigate in real time the commercial real estate industry’s reaction to the Fed’s decision to raise rates by more than five percentage points over the past 16 months. Increased borrowing costs combined with strong consumer spending and historical lows in unemployment have created a unique and challenging environment for investors and capital providers alike.
As the saying goes, especially in this competitive market, ‘you need to make money and save money’ in order to survive! As a golf professional, you are the expert at ‘making money’ but there is another type of professional who can assist you with ‘saving money’.
A common question for hotel and restaurant operators is: How do I get insurance that effectively covers my operation for the lowest price available? While insurance is a complex topic with many intricate layers, the answer to this specific question is simple – control the process.
Based on a sample of more than 3,000 hotels from CBRE’s Trends® in the Hotel Industry database, U.S. hotel property tax expenditures averaged $2,626 per available room (PAR) in 2022. This is 10.8% less than the $2,943 PAR recorded in 2019, before the COVID-19 pandemic. Concurrently, the earnings before interest, taxes, depreciation, and amortization (EBITDA) for these same properties fell by 1.7%.
Since room sales generate lodging tax revenues, an overview of hotel market trends provides a perspective on the industry's current and future fiscal impacts. While the negative impacts of the COVID-19 pandemic were unprecedented, as documented in our 2022 HVS Lodging Tax Study, nearly all lodging markets have reached or exceeded pre-COVID levels of revenue generation. Revenue per available room (“RevPAR”), the product of average daily room rate and occupancy rate, is a standard industry metric that combines the effects of occupancy and average daily room rate changes on hotel revenue performance. The figure below compares the amounts of RevPAR in the 25 US urban markets for each month from January 2019 through July 2023.
Welcome to the world of hospitality development, where unique developments and unforgettable moments come to life. We are thrilled to introduce you to our latest publication, "Navigating the Investment Terrain: Trends in GCC Hotel Development Costs" where we delve deep into the intricate world of hotel development costs, unveiling the secrets that impact project costs and hotel values. In this joint publication, we outline the main hotel development expenses and recent trends in hotel development and design. Whether you are a seasoned developer, an aspiring hotelier, or simply an enthusiast curious about the inner workings of the industry, we hope this publication equips you with the knowledge to navigate this dynamic industry successfully.