Finance Reports - Hospitality Net

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February 2, 2009

HVS EMEA Hospitality Enews – Week Ending 30 January 2009

Hello "Hip And Humble" Home2 Suites | Home2 Suites is a new brand from Hilton Hotels Corporation (HHC) that will target the midscale extended stay market. HHC is in receipt of ten franchise applications already, even though work to build the first property is not expected to start for at least another six months. Each property will rise to a height of four storeys and have around 108 guest rooms. The pleasure will be all North America’s to begin with; although by the end of 2012 HHC wants to have 100 Home2 Suites properties open, and undoubtedly some of these will be outside the Americas region.

January 29, 2009

PricewaterhouseCoopers Forecasts a Significant Reduction in Hotel RevPAR in 2009

NEW YORK -- PricewaterhouseCoopers LLP (PwC) today announced a revised lodging forecast that illustrates the effects of the sharp deceleration of the U.S. economy on the U.S. lodging industry. Based on current forecasts for the U.S. economy, and historical data from Smith Travel Research, PricewaterhouseCoopers forecasts an 11.2 percent decrease in room revenue per available room (RevPAR) during 2009, after a 1.9 percent decline in 2008.

January 27, 2009

Israel - Hospitality Struggles And Opportunities | HVS

This article provides an overview of the Israel hotel market and details both its susceptibility to and ability to rebound from the region’s volatility. Growth of Israel’s tourism industry has historically been hindered by political conflicts such as the Second Intifada, which began in September 2000, and the short-lived Second Lebanon War in July 2006. Table 1 highlights tourist arrivals from 2001 to 2007 and forecasts arrivals from 2008 to 2010.

January 23, 2009

STR reports U.S. hotel performance for year-end 2008 and December 2008

The U.S. hotel industry finished 2008 with a 60.4-percent occupancy rate, an average daily rate of US$106.55 and revenue per available room of US$64.37, according to data released today from STR. The occupancy rate was 4.2 percent lower than industry-wide occupancy at the end of 2007 (63.1 percent), while ADR was 2.4 percent higher than 2007 (US$104.04), and RevPAR was 1.9 percent lower than 2007 (US$65.61). “After a reasonably good start to 2008, the industry fell into an extremely negative pattern during the last four months of the year,” said Mark Lomanno, STR’s president. “The data during the last quarter of 2008 experienced a dramatic decrease, and that led to the disappointing year-end numbers.”

January 21, 2009

Video Interview: Randy Smith (Part 2) | hotelnewsnow.com

STR Founder and CEO Randy Smith reveals one of the greatest challenges facing the hotel industry in the first installment of an exclusive two-part video interview.

January 21, 2009

STR reports U.S. hotel Pipeline for December 2008

The total active U.S. hotel development pipeline includes 5,706 projects with 612,892 rooms, according to the December 2008 STR/TWR/Dodge Construction Pipeline Report released this week. This represents a 0.4-percent decrease in the number of rooms in the total active pipeline over December 2007. The total active pipeline data includes projects in the In Construction, Final Planning and Planning stages, but does not include projects in the Pre-Planning stage.

January 19, 2009

HVS EMEA Hospitality Enews – Week Ending 16 January 2009

First, It's Foremost | Foremost Hospitality is on a tour of its native Germany clutching a franchise agreement that covers the Holiday Inn and Holiday Inn Express brands. Foremost is visiting Germany’s key cities to open hotels with these brands, and will not rest until InterContinental Hotels Group (IHG) has counted up to 20. The countdown should be complete by 2016, and seven of the 20 hotels are already under development. Before IHG and Foremost embarked on their latest adventure together, there were 41 Holiday Inn hotels in Germany and 14 hotels with the Express by Holiday Inn brand.

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Why Hospitality Net Leads B2B in Hospitality

Learn what makes us the industry-leader in what we do.

Hospitality Net

January 16, 2009

STR reports U.S. hotel performance for the week ending 10 January 2009

The U.S. hotel industry experienced declines in all three key performance measurements, including double-digit drops in occupancy and revenue per available room, during the week of 4-10 January 2009, according to data from STR. Occupancy fell 16.9 percent from the comparable period a year ago to finish the week at 42.2 percent (50.9 percent in 2008). RevPAR dropped 22.9 percent to end at US$41.50 (US$53.82 in 2008). While not in the double-digit range, average daily rate experienced a decline as well, falling 7.2 percent to US$98.25 (US$105.83 in 2008).

January 15, 2009

2008 United States Hotel Valuation Index | HVS

The Hotel Valuation Index (HVI) tracks hotel values in 65 major markets and the United States as a whole. Created in 1987 by HVS, the HVI is derived from an income capitalization approach, utilizing market area data provided by Smith Travel Research (STR) and historical operational and capitalization rate information from HVS’s extensive global experience in hotel feasibility studies and valuations. From this information, it is possible to determine historical hotel values per room, as well as an indication of hotel value growth into the future.

January 14, 2009

November 2008 | From Double-digit Losses To Double-digit Gains

The global economic slowdown is having an impact on the hotel industry based on the world’s four regions reporting mixed year-over-year results when reported in U.S. dollars, euros and British pounds for November 2008, according to data compiled from STR Global. Figures for occupancy, average daily rate and revenue per available room range from double-digit losses to double-digit gains, depending on the market and the currency used for comparison. “Although year-to-date numbers still are fairly presentable due to a strong first half of the year, November saw a sharp drop in demand, and RevPAR is suffering as a result,” said James Chappell, managing director for STR Global. “Interestingly, the more mature markets with good international brand saturation are faring better as they are holding the rate more. Less mature markets, or those with a minimal amount of branded hotels, are falling in the trap of falling rate and occupancy. In general, Europe is suffering more than the Middle East, although there are reports of falling demand in those areas as well. 2009 will be an interesting year.”

January 8, 2009

STR posts results for week ending 3 Jan.

The U.S. hotel industry experienced declines in three key performance measurements during the week of 28 December 2008-03 January 2009, according to data from STR. Revenue per available room fell 3.6 percent from the comparable period a year ago to finish the week at US$44.40 (US46.05 in 2007-2008). The industry’s occupancy for the week dropped 0.5 percent to end at 42.9 percent (43.1 percent in 2007-2008), while average room rate declined 3.2 percent to complete the week at US$103.43 (US$106.80 in 2007-2008).

January 2, 2009

STR reports U.S. hotel performance for the week ending 27 December 2008

The U.S. hotel industry experienced steep declines in three key performance measurements during the week of 21-27 December 2008, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 16.4 percent to end the week at 35.8 percent (42.8 percent during the comparable week in 2007). Average daily rate dropped 9.5 percent to finish the week at US$92.49 (US$102.22 in 2007). Revenue per available room for the week decreased 24.3 percent to finish at US$33.13 (US$43.78 in 2007).

December 28, 2008

STR reports U.S. hotel performance for the week ending 20 December 2008

The U.S. hotel industry posted increases in all three key performance measurements during the week of 14-20 December 2008, according to data from STR. The results mark the first time in four weeks that occupancy, average daily rate and revenue per available room saw positive growth. In year-over-year measurements, the industry’s occupancy rose 2.0 percent to 42.9 percent (up from 42.0 percent during the comparable week in 2007). ADR saw a modest boost from US$91.89 in 2007 to US$92.44, an increase of 0.6 percent. RevPAR for the week increased 2.6 percent to US$39.61 (US$38.61 in 2007).

December 22, 2008

The economy’s effect in Asia/Pacific | hotelnewsnow.com

International tourism started strong in 2008. According to the UNWTO World Tourism Barometer, the first four months of the year saw an average of 5.7 percent growth. However, this number fell to 2 percent between June, July and August, and we anticipate that it will continue to decline. UNWTO has forecasted growth for the year at 2 percent to 3 percent, thanks to the strong start. It projects international tourism to be flat to up 2 percent in 2009. These statistics do not bode well for the hotel industry, and they are beginning to have a negative impact on many regions throughout the globe.

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December 21, 2008

HVS EMEA Hospitality Enews – Week Ending 19 December 2008

The Iberotel Fleesensee is not due to open until 1 July next year, but that has not deterred Lloyd Fonds, the German investor, from wanting to take early possession of the four-star hotel. Lloyd Fonds is to pay its compatriot the developer GBI roughly €17.6 million for the 156-room hotel, which is part of the Land Fleesensee development in northeastern Germany. GBI must be delighted when it sees Lloyd Fonds coming up its front path: the Iberotel Fleesensee is the fifth hotel that Lloyd Fonds has bought from it.

December 19, 2008

The Changing Face of the Greek Hospitality Market

This article summarizes the historical tourism trends in Greece until 2007 and describes the most significant new hotel developments expected to beacon the tranformation of the country into a major competitive player in the global hospitality industry. This article is written by Themis Trakas and Pavlos Papadimitriou.

December 19, 2008

Hong Kong Market Outlook

Over many years, Hong Kong has been one of the leading commercial centres in Asia. The local hotel market is among the strongest in the region and globally. In this article we highlight some of the historical trends and challenges that hotels will face in light of a global economic recession. Over the last decades, the Hong Kong hotel market was counted among the strongest in the world. The characteristics of the city mentioned earlier ensured occupancy levels largely above 80% for High Tariff A and High Tariff B hotels over the period from 1990 to 2007. The following charts present the historical supply and demand trends of these two categories from 1990 until the year-todate through October 2008 period, as provided by the HKTB. We note that average rate data was only compiled as of mid-1998.

By Daniel Voellm, MRICS, CEO & Founder, AP Hospitality Advisors

December 18, 2008

STR reveals U.S. results for 7-13 December

Tennessee—The U.S. hotel industry posted declines in all three key performance measurements during the week of 7-13 December 2008, according to data from STR. In year-over-year measurements, the industry’s occupancy rate fell 5.6 percent to end the week at 49.6 percent (52.6 percent during the comparable week in 2007). Average daily rate slipped 0.2 percent to finish the period at US$101.80 (US$102.04 in 2007). Revenue per available room for the week dropped 5.8 percent to finish at US$50.52 (US$53.66 in 2007).

December 16, 2008

Hotel project abandonment soars in U.S. as total development pipeline increases | STR Reports

Tennessee—The number of hotel guestrooms in the construction pipeline in the U.S. that have been abandoned increased 75 percent in November 2008 over November 2007, according to data from the STR/TWR/Dodge Construction Pipeline Report. The Total Active Pipeline for the U.S. through November includes 631,680 guestrooms—including 191,807 that are in the In Construction phase. The Total Active Pipeline figure is 6.7 percent higher than it was in November 2007, while the number of rooms in the In Construction phase is 6.8 percent lower than it was in November 2007.

December 15, 2008

HVS EMEA Hospitality Enews – Week Ending 12 December 2008

A Second Park Inn For Berlin | In 2003 Germany’s capital Berlin became the owner of the world’s first ever Park Inn property and for five years the 1,012-room Park Inn Berlin-Alexanderplatz has operated as the only Park Inn in Berlin; however, this Christmas Rezidor Hotel Group is to give it a companion. Through a project with German hotel company Proventhotels, its Park Inn franchise partner in the country, Rezidor is to rebrand the former 94-room Avalon Hotel as the Park Inn Berlin City West before the end of 2008. This will be Rezidor’s fourth hotel in the city.