Hotel Budget Season: Are you Ready for 2023?
No time to lose, the next year is almost here. And a good hotel budget plan isn’t made overnight.
By Patrick Landman, CEO & Founder, Xotels
Opinion Articles
How Financing Costs Are Impacting Transactions
Commercial real estate financing, particularly related to the hospitality industry, has been in a state of flux as the pendulum of the economy swings towards a correction. At the start of the year, many lenders were coming back to hospitality, and the general sentiment for both investors and lenders was bullish. In late February 2022, the war in Ukraine drove increases in the prices of oil and goods that started to shift the global economic outlook, which many lenders and hotel investors cautiously watched, uncertain of the impact this would have on the U.S. economy.
By Brad Hoban and Emil Iskandar
In High Demand: Florida Hotels and Resorts (Again)
In an article we published in February 2021, before the COVID-19 vaccines were broadly rolled out, we suggested to owners of hotels in Florida, and waterfront hotels in the Sunshine State in particular, that their assets would soon be in high demand.
By Nick Plasencia, Managing Director with The Plasencia Group, The Plasencia Group
A Return to 'Normal' Hotel Trading in Europe Requires a Global Approach
Summer 2022 has seen a return to travel around the world, with leisure travelers eager to feast on foreign sights and a sudden explosion in accents in sought-after destinations such as London, Paris and anywhere sporting blue seas and relaxing views.
By Alex Sogno, CEO, Global Asset Solutions
Hospitality Financial Leadership – How to Write a Great Monthly Executive Commentary
They go by many names: owner’s commentary, monthly commentary, executive commentary and more. The names can be different but in essence, they are all the same thing – a review of the prior month’s results plus a forward look into the coming months from a financial and market perspective.
By David Lund, The Hotel Financial Coach, David Lund
Do your financial end-of-year prep now or forever try to catch up
In a perfect world, the year-end financial process should be no more difficult than any other month-end closing. But we do not live in a perfect world and although all these boxes should be ticked at the end of each month, there are times when it is just not possible…and before you know it, another month has gone by!
By Candace Marshall, Hospitality Finance Expert, Strategic Solution Partners
F TAR W – The Secret Monthly Formula to Create Financial Leadership In Your Hotel
To get your non-financial managers to play ball with their numbers in your hotel you need a system that they can follow, a sort of roadmap they can use to stay on track every month. Teach them this and you will have an engaged team that buys into playing their financial part.
By David Lund, The Hotel Financial Coach, David Lund
Why Hospitality Financial Leadership is More Important Than Ever
With the rapid changes we have seen since 2020 in hospitality comes many additional challenges. It seems like everything is up for grabs these days. Our employees, our distribution, our markets, our customers, and most of all our bottom line. What you do now and into the future is going to determine the health and longevity of your hotel business. That’s what this piece is all about. I’m going to lay out the strategy that will give you the greatest change of “operational” financial success. This strategy works best when its lead by the owner or the GM.
By David Lund, The Hotel Financial Coach, David Lund
Hospitality Financial Leadership – How to Prepare a 5-Year Proforma
Preparing a five-year financial plan for your hotel might sound daunting, but it is all in your head. Let’s lay it out. You are either dreaming about a business that does not exist yet and you need a plan, or you are up and running and you want to look into the future and pave a path forward. Either way you need to same tools.
By David Lund, The Hotel Financial Coach, David Lund
Hotel Currents: Economics and Hotel Financial Performance
CBRE Hotels Research specializes in translating national and local economic conditions into measures of hospitality market and property-level financial performance now and into the future.
By Jack Corgel, Managing Director, CBRE Hotels’ Americas Research, CBRE Hotels
The 2023 Annual Budget - A Captivating Story of Intrigue and Suspense
As summer tumbles into fall, hotel asset managers are challenged with reviewing and approving annual budgets. As they analyze page after page of next year’s proposed budgets from their management companies with input from all facets of hotel operations — from housekeeping and F&B to maintenance and marketing — hotel and resort asset managers ought to look beyond the spreadsheets and revenue projections before concluding whether they have a best-seller on their hands.
By Gary Isenberg, Vice President, Asset Management, The Plasencia Group
The Benefits and Importance of Budgeting and Forecasting
Budgeting and forecasting (B&F) in the hospitality industry is critical to determine, formulate, and align short-term and long-term goals for an organization. This detailed process is typically managed by a company’s finance department under the Chief Financial Officer's (CFO) guidance. During the B&F process, businesses will outline their financial direction, create a model of expectations for the next three to five years, allocate resources accordingly, and create a proper financial strategy to benefit the company.
By Haley Wolf, Marketing and Public Relations Manager, M3
Controlling U.S. Hotel Utility Costs
Annual changes in U.S. hotel utility costs and in the Consumer Price Index (CPI), or inflation, have historically proven to be strongly correlated. As of August 2022, CBRE is forecasting CPI growth to be 7.7 percent in 2022, followed by another 3.6 percent in 2023. Since inflation has averaged just 2.2 percent since 2000, these inflation projections have hoteliers concerned about operating costs. Given that rising energy costs are a significant driver of the current rise in CPI, hotel managers are especially worried about utility department expenses.
By Robert Mandelbaum and Ethan Gabany
2022 HVS Lodging Tax Report - USA
While the lodging industry is recovering from impacts of the COVID-19 pandemic, this twelfth annual HVS Lodging Tax Study quantifies the revenue impact of the pandemic over the past year. An analysis of 25 major US hotel markets shows that overall revenues have recovered to 2019 levels, but markets with high levels of leisure demand are faring better than those without. The lag in collections of lodging taxes will prolong the impact of the pandemic state and local government collection of the taxes. The report also provides historical data on tax rates and the collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest US cities.
By Thomas Hazinski and Peter J Gonzalez
A Review of Equity Yields and Discount Rates in a Post-COVID Environment
Equity yields and discount rates remain at or below pre-COVID levels; however, rising debt costs will result in changing investor return expectations.
By Katy Black, Senior Vice President at HVS Denver, HVS
Hospitality Financial Leadership – What Really Counts and Why
If you do not have all three of these metrics on your radar screen at the same time, you are flying the profit picture in your food operation with at least one eye closed. All three metrics must work together at the same time to get the best view of the potential profitability of your food sales. Let’s explore these three different measurements and see what we find.
By David Lund, The Hotel Financial Coach, David Lund
Hotel Performance Analysis – What Is It, and How Could It Improve Your Hotel Operation?
In the post-COVID-19 world, the hospitality industry has had to reevaluate and adjust how it does business. From shifting market segments, to redeploying sales teams, to addressing operational challenges, hoteliers have been forced to evolve as they continue the path to recovery.
By JoAnn M. Mulnix-Morris, Senior Vice President Sales & Marketing, Newport, RI, HVS
Hotel operators got a pass, but now they’ll be held accountable for performance
Jarrad Evans is the Chief Investment Officer for Remington Hotels, which manages more than 120 branded and independent hotels. In his role, he works closely with hotel owners and investors to help them get the most out of their properties.
By Josiah Mackenzie, Host and Producer, Hospitality Daily
Conference Takeaways – The Lodging Conference 2022
The halls of the JW Marriott Desert Ridge were buzzing this week as thousands descended upon the Phoenix resort for this week’s Lodging Conference. If you couldn’t make it to the event, here’s a quick recap of what you missed.
By Rodney Clough, President - HVS Americas, Denver, HVS
HVS Monday Musings: Indian Hotel Industry Exploring the IPO Route
India’s initial public offerings (IPO) market has been thriving for the past few years, and 2021 ended up being a record year with over 60 IPOs, as the country’s stock market reached new highs, putting the COVID fears to rest. This positive trend has continued in 2022, with 19 companies launching their IPOs so far. However, hotel industry IPOs have been few and far between, with Lemon Tree Hotels and Chalet Hotels being the noteworthy ones, but even those were before the pandemic.
By Mandeep Lamba and Dipti Mohan