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Opinion Articles

Opinion Article

Hotel Market Beat H1 2024 - UK

Transaction volumes in the UK hotel real estate market have significantly increased in the first half of 2024, reaching levels unseen since H1 2015. According to new data from Cushman & Wakefield, this revival saw around £3.9 billion transacted by hotel investors in the first half of the year. Fuelled by several major private equity portfolio deals, half-yearly investment saw a 210% upswing in activity versus the same period in 2023.

Jack WallsworthArsh Gupta
By Jack Wallsworth and Arsh Gupta
United Kingdom
Opinion Article

HVS Monday Musings: Hotel Sector’s Big Debate - Asset Light or Asset Right?

The Indian Hotels Company Limited (IHCL) has recently been making significant strides in the global hospitality industry. With Brand Finance ranking Taj as the world's strongest hotel brand for the third time recently, and the remarkable growth in the company’s market capitalization, IHCL's ascent into the Top 5 global Hotel Management companies (by market cap) is a testament to its growing global presence and influence. This recognition not only highlights IHCL's success but also places the Indian hospitality market in the global spotlight in line with the country’s ascent among the top 5 global economies.

Mandeep LambaDipti Mohan
By Mandeep Lamba and Dipti Mohan
India
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Opinion Article

APAC: Economic Boom or Financial Gloom?

2024 has been very intense. Throughout my career as a hotelier, I've gone through 9/11, a few wars, a world financial crisis, pandemics, and a tsunami to name but a few significant milestones. And yet, 2024 has been the most intense year for me thus far in the quarter century of hospitality life. So, what is going on?

Tareq Bagaeen
By Tareq Bagaeen, Senior Consultant, HotStats
Opinion Article

Unique Factors Shaping the Buffalo Lodging Market

As a border town, Buffalo has historically been heavily reliant on Canadian visitors and U.S. travelers stopping over en route to/from Canada for lodging demand. Based on a recent hotel market study and many hotel appraisals in the greater Buffalo-Niagara area I have performed, it is clear that traffic volume at the land crossings has an impact on these border markets. Below is a brief timeline of the changing restrictions for border crossings from 2020 until 2023.

Christian Cross
By Christian Cross, Vice President, HVS Buffalo, HVS
Buffalo, New York, United States
Opinion Article

Management Company Compensation Slows in 2023

Prior research conducted by CBRE Hotels Research revealed that hotel management companies were rewarded handsomely as the U.S. lodging industry recovered from the COVID-19 pandemic. An analysis performed by CBRE in April 2023 found that total hotel revenue increased by 153% from 2020 to 2022, while Gross Operating Profits (GOP) grew by 437%. This resulted in a 68% increase in the fees paid to management companies and brought management fees back to pre-pandemic levels. The increases in fees were largely due to the improved performance of U.S. lodging properties, which in turn triggered the payment of incentive management fees.

Robert MandelbaumTim Dick
By Robert Mandelbaum and Tim Dick
United States
Opinion Article

May 2024 Hotel Industry Outlook: Bright Spots and Challenges

Mixed messages abound these days, comprising some bright spots, some not so bright spots, and some challenges. With no coherent theme, the greatest challenge may be developing a forecast for the industry as a whole. But we are undaunted and herewith present our current expectations for the U.S. lodging industry.

Anne Lloyd-Jones
By Anne Lloyd-Jones, MAI, CRE, Director of Consulting & Valuation Services, National Practice Leader, at HVS New York, HVS
United States
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Opinion Article

2024 Q1 Trends in Hotel Guest Experience: Surge in Satisfaction and Responsiveness

2024 kicked off with exceptional growth in the hospitality sector, particularly in Q1, where we observed a notable surge in hotel guest satisfaction and responsiveness. This trend, especially pronounced in the 3 and 4-star hotel categories, not only mirrors but also exceeds the upward trajectory seen in the previous year’s first quarter. The latest Guest Experience Benchmark Report reveals key trends shaping the sector in early 2024.

Bruno Saragat
By Bruno Saragat, Sales Engineer, Shiji
Opinion Article

Venice Market Pulse

The resurgence of travel activity in Venice following the years afflicted by the COVID-19 pandemic has not only been a sign of recovery but also an indicator of evolving trends within the city's tourism sector. In line with what was observed in other Italian cities, Venice's hotel market experienced an unprecedented surge in the post-pandemic era. While overall occupancy rates remain below pre-pandemic levels, the upper upscale and luxury market segments appear to have fully rebounded. This recovery, along with a significant increase in average rates, has resulted in a notably positive impact on Revenue Per Available Room (RevPAR).

Ezio PoinelliLorenzo GullottaGiammarco Pignocchi
By Ezio Poinelli, Lorenzo Gullotta, and Giammarco Pignocchi
Venice, Italy
Opinion Article

Paris Market Pulse 2024 – Going for Gold

The City of Light enjoys a well-balanced blend of business and leisure demand resulting in both a broad seasonality and strong average rates. Since 2015, Paris has faced multiple challenges which highly disrupted hotel performances. As the city was recovering from the 2015-16 terrorist attacks, the ‘yellow vests’ movement and pension reform strikes of 2018-19 and the transportation strike of 2019, the COVID-19 pandemic hit the world. The market has since shown remarkable resilience and has gradually recovered, reaching record levels of RevPAR in 2023. Despite and throughout this tumultuous period, Paris has maintained its status as one of the most sought-after destinations for hotel investment, owing to its robust underlying fundamentals.

Maxime GauthierAlexandra Dumoulin
By Maxime Gauthier and Alexandra Dumoulin
Paris, France
Opinion Article

Sun, Sand, Sea, and Luxury: The Rebound of Barbados Following COVID-19

Barbados is an independent English-speaking Commonwealth country and the easternmost island of the Caribbean. It is one of the most mature tourist destinations in the Caribbean. The island is known for offering some of the most serene beaches in the world, as well as an abundance of dining options, local shopping experiences, outstanding golf courses, and numerous other attractions. According to Barbados Tourism Marketing Inc. (BTMI), approximately 80% of visitors to the island come for vacation or tourism purposes. The following graph shows the historical stopover visitation data for Barbados.

Kristina M. D'Amico
By Kristina M. D'Amico, Senior Vice President - Director, Caribbean Region, Miami, HVS
Barbados