When it comes to investing in oneself many times people overlook the outcome and instead concentrate on the up-front cost. When we look at the opportunity to improve our own personal prosperity, we need to see the full picture. We need to realize in life we have a window that opens and closes on our career and its fortunes. It reminds me of a line from Shakespeare:
I do not know about your experience, but for me growing up in the hotel world, and especially my first decade working in F&B and rooms, the adage, “Look after the guests and the money will look after itself,” was literally beat into my head.
Hotels Owners Interested in Interest To analyze the impact that declining EBITDA levels had on the ability of hotel owners to pay their interest expense, CBRE studied a sample of 1,121 hotels that reported interest payments in their operating statements for the years 2019 and 2020.
Overseeing a large hotel renovation is no easy feat. Complicating matters: a pandemic.
Before we jump into 2022 plans, please take the quick survey/debate above of how you view the business and feel free to opine on why. Answers will appear on sided.co and on the hotelguru.com website.
A lot gets written about certain things in the hotel industry and others not so much as a mention. I am not saying it is simply a matter of blatant favoritism or anything like that but it is not lost on me that certain items get the limelight. In this piece, I am going to shine a light on two of the hotel team’s third-line mainstays. This pair keeps us on track month after month and they need a little more respect.
After the year that was 2020, 2021 seems to be a period defined by cautious optimism. A world on the precipice of a long-awaited reopening, with a predicted surge of social and economic activity ready to shift our respective communities from the ‘new’ normal to the normal we once knew. The desire for this return is palpable and warranted, but we must acknowledge that much still remains uncertain in that same breath. Our attention is fixed on the future, but what does that future hold from an economic perspective? More importantly, what is the most fiscal path forward for businesses – especially those in sectors that were severely shuttered by the pandemic, like hospitality?
Based on CBRE’s survey of monthly operating performance, U.S. hotels experienced a 58 percent decline in total hotel revenues from 2019 to 2020. This resulted in a decrease of 78 percent in profits at the Gross Operating Profit (GOP) level, along with a 107 percent fall off in Earnings Before Interest, Taxes, Depreciation, and Amortization.
The ALIS Conference came and went this week, bringing Downtown L.A. hotels to life with optimism and hope that normal for the hotel industry is coming in the not-too-distant future. Here are some collective takeaways from our team that was in attendance.
From time immemorial, revenue per available room, or RevPAR, has been the go-to key performance indicator in the hotel industry. A simple calculation of average daily rate and occupancy rate, it is often thought of as the barometer of health for a hotel by those who work in the industry and those who make a living analyzing it.
The hotel industry's recovery is accelerating, overcoming the crisis. In the first half of 2021, the stocks of the major hotel groups have recovered and outgrown the indexes. And the organizations are investing massively in new international offerings. For example, the Hilton group has announced the construction of 160,000 rooms over the next few years, while new entrants are benefiting from the support of the largest financial institutions.
Fintechs have experienced a significant development over the last five years. Some smart technologies are emerging with obvious potential for the hospitality industry such for making booking reservation and payments, often linked to management systems of access to rooms and services. The pandemic has accelerated the implementation of these innovations.
This article lays out why it's important to differentiate distribution costs from customer acquisition costs (CAC). Distribution costs refer to commissions paid to travel agents, OTAs, discounts to tour operators, etc. Whereas customer acquisition costs include the distribution costs, website-related costs, sales & marketing department salaries (after all, they are here to acquire customers), social media costs, advertising, loyalty and brand-related expenses, channel manager fees, etc.
The pandemic has made it difficult for anyone to relax. Beyond being a drag on a hotel’s core business—room sales—it’s also been an assault on ancillary revenues, such as spa business.
Over the many years I have worked in hotels, I have had the pleasure of working with some exceptionally fine and talented individuals. This story is about one GM and his penchant for simplicity.
This year has already seen many of the various cryptocurrencies grace the front page of major news outlets. This trend will continue throughout 2021 and, by our predictions, for the rest of everyone’s natural lifespans who happen to be reading this article. Pure hype or not, the technologies underpinning these altcoins are going to keep expanding and maturing as the applications for blockchains are too great to ignore.
Hotel real estate investors need to measure both the absolute and relative financial performance of their properties. A 10% annual return may appear solid unless a collection of comparable investments earned 15%. Risk-adjusted returns measured against the appropriate index provide a way to assess managers’ abilities to generate excess returns. Measures of investment return come in many flavors.
See how JMBM’s Global Hospitality Group® can help you.Click here for the latest articles on EB-5 Financing here for C-PACE Financing.
With a 40% drop in the number of overnight stays in 2020, the Swiss hotel sector is on the verge of suffocation. An exceptional season this summer, however, could limit the damage.
The U.S. isn’t the only country having issues filling hotel positions. In the wake of pandemic-induced layoffs and furloughs, properties around the globe are having trouble staffing up.