We’re all always asking to some degree where the hotel industry is going. At the ownership level, it’s a matter of timing in terms of whether or not to buy, sell, renovate, expand or reflag.
When most people hear the term “inventory management,” they are likely to think of warehouses that ship products to consumers or manufacturing facilities that need to keep track of the different parts and equipment used in their work. But inventory management is just as applicable in the hospitality industry as well.
You might be reading this and saying to yourself, “Well, for sure every hotel needs a daily pick-up report.” But I bet you would be surprised how many hotels do not use their pick-up report and or they do not use it properly. They are missing the financial opportunity that a good strategy around the daily pick-up represents.
Hunter Hotel Advisors sponsored their annual hotel investment conference March 22-24, 2022, at the Atlanta Marriott Marques, attended by 1,726 hotel industry participants. The first Hunter conference in the late 1980s attracted 100 participants from almost entirely the Southeast and Atlanta at a less elaborate airport hotel setting. This year’s event had the aura of a national conference such as NYU and ALIS but retained the intimacy of earlier conferences and a distinct regional flavor of the Southeast U.S.
With statistics showing that only 29.1% of invoices are paid on time in the post-pandemic United States, the already-fraught world of invoices just got messier.
To analyze recent changes in hotel insurance costs, and the factors that influence those changes, we examined the operating statements of 3,156 U.S. hotels that reported insurance expenses for the Trends® survey each year from 2015 through 2021 (estimated).
Having a monthly financial statement for your hotel is the key to creating an effective management process inside your business. But, like many things in life, hotel financial statements are not all equal. To be effective your statement needs to be in shape, and it must have the proper features that allow you the insight you need to make better operating decisions in a timely manner.
The Annual Asia Pacific Hotel Operator Guide (HOG) is the most established publication in the industry in Asia Pacific to guide investors and owners in understanding the scale, presence, and capabilities of hotel operators in the region. The HOG highlights geographic distribution and brand presences of existing properties and pipeline supply, as well as management structure by operators. The publication aims to serve owners and investors a unique reference about the growth and scale of international and regional operators of esteemed reputation and footprint in Asia Pacific.
According to a recent GlobalData report, the global mergers and acquisitions (M&A) activity in the travel and tourism sector was worth US$155 billion in 2021, representing an 84% increase year-on-year, with the lodging segment accounting for the largest share in terms of deal value and volume. During the year, the sector saw 27 billion-dollar-plus global M&A deals, up from 20 the previous year. This, however, is a sharp contrast to the situation in India. Hotel transactions in the country have not increased significantly post-COVID, and the sector has not yet seen a flurry of distressed transactions, as was expected as a likely result of the pandemic.
In your hotel internal controls are a mission critical element you must have up and working well to adequately safeguard your assets. If you forgo these controls, you leave yourself wide open for – and I hate to use this word – fraud.
Driven by more flexible legislation, hotel management leasing in France is attracting a growing number of investors thanks to its excellent risk-benefit ratio.
The hotel business is a form of retail business. Every day we must balance our revenues with our settlements, just like you would if you owned a store. Or for that matter any business that has sales every day and the customers pay for their purchases at the time of the sale.
After spending a few days with 1,800 or so hotel industry participants at the Americas Lodging Investment Summit at and around the J.W. Marriott L.A. Live hotel in Los Angeles, the prevailing mood can best be described as “eager to move ahead.”
If you complete a regular monthly close in your hotel, and I certainly hope you do. And if closing your books takes longer than three-five working days, then this is meant for you. Doing your month-end and having a final financial statement each month within one week is the benchmark for a team and system that works well. Taking any longer just means you are really wasting valuable time. If you are not the one who closes the books, but you would like the statement faster, then this is also for you.
Its January 2022, cold in most of the U.S., and we are all dreaming of our next vacation.
When buying or selling a hotel, there are many steps to conducting a hotel appraisal. Previously, we highlighted the needed market research including environment, supply/demand, location and highest and best use in our guide to practical hotel appraisals.
That’s a big statement because if you are involved in the budget in your hotel and you have played baseball then you are probably saying to yourself that I am off my rocker.
COVID-19 and the ensuing travel restrictions have wreaked havoc on the travel and hospitality industries all over the world. To mitigate the impact, governments around the world have taken a variety of measures over the last two years, ranging from prioritizing vaccination for tourism employees to providing financial and liquidity support as well as making policy changes to aid the recovery of their respective travel and hospitality sectors. In fact, with low international travel demand, governments in some countries like Singapore, Hong Kong, Slovenia, Switzerland, and Thailand, have even introduced incentives and refunds to encourage citizens to travel within their own country.
I heard this about 40 years ago and it has stuck with me. I was a newbie cocktail waiter working part time in my hometown hotel. One of my regular weekend customers was the controller and he was telling me he needed an income auditor for the summer line-up. I suggested my brother who was recently out of work at his articling job at a CA firm.
Interest rates are low, consumer confidence is stronger, oil prices are high and employment is very uneven. The Purchasing Managers Index (PMI) is at 58.7 in December 2021, down from 60 in November and 61 in October. Any number over 50 shows that the economy is expanding so the PMI is good news. Threats from COVID-19 variant Omicron should peak this month. Perhaps the biggest threat is inflation as that is starting to impact the middle class as well as the poor. The silver lining is that this inflation might cause hotel room rates to grow beyond the 6% inflation rate.