Advertisement

Opinion Articles

Opinion Article

A Deep Dive Into Japan’s Hotel ADR Growth Trends

Japan’s growth in hotel revenue per available room (RevPAR) has remained extremely impressive over the past 15 months – a function of a later opening post-pandemic, above-average inflation, and an influx of international demand. That’s largely reflected in average-daily-rate (ADR) growth, although through much of 2023, the first and third points helped drive double-digit occupancy increases as well.

Kelsey Fenerty
By Kelsey Fenerty, Manager Analytics, STR, CoStar
Japan
Opinion Article

Amsterdam Market Pulse – Full Recovery in Sight

With a population of more than 930,000 , the capital city of Amsterdam lies on the coast of the province of North Holland. The city – known for its historic canals, the famous Van Gogh Museum, the Rijksmuseum, and the coffee shops of the Red Light District – is also a significant financial and business centre in Europe. There were more than 3,500 international companies in the Amsterdam Metropolitan Area (AMA) in 2023, representing more than 30% of the private-sector jobs. The city is highly accessible via local, national and international transport links. Amsterdam has excellent domestic and international connections via Amsterdam Schiphol Airport, the European high-speed rail network and the North Sea Canal.

Maxime Gauthier
By Maxime Gauthier, Senior Associate, HVS
Amsterdam, The Netherlands
Opinion Article

Cornell Hotel Indices First Quarter 2024: Large Hotels Reach a New Statistical Low

Only the Midwest, South Atlantic, and West South-Central regions posted moderate single-digit hotel-price gains in the first quarter 2024 (Midwest, 3.2%; South Atlantic, 3.8%; and West South-Central, 1.6%). Hotels in gateway cities experienced a reversal, exhibiting better performance than hotels in non-gateway cities this quarter. Transaction volume fell year over year and quarter over quarter for both large and small hotels in gateway and non-gateway cities. Standardized prices of large hotels continue to soften while those of smaller hotels remain relatively stationary. The cost of hotel debt financing and the delinquency rate for hotels rose in the recent quarter, even though credit spreads continued to tighten and relative risk narrowed. As in prior periods, borrowing costs still exceed the return on hotels. Expect to see a rise in the price of large hotels and a decline in prices for small hotels next quarter based on our leading indicators of hotel price performance.

Crocker LiuAdam D. NowakRobert M. White
By Crocker Liu, Adam D. Nowak, and Robert M. White
United States
Ad Social Strategy
Turn Social Into Commercial Growth

A two-day working summit, live and online, for hospitality teams ready to improve bookings, reputation and results.
KORDIE®
Opinion Article

HVS Las Vegas Casino and Hotel Market Outlook 2024

Las Vegas continues to evolve, with billions of dollars being spent on the development of new world-class venues in recent years. In 2023, occupied room nights, as well as total occupancy (83.5%), continued to lag 2019 performance; however, like gaming revenue, the market’s ADR ($191.29) and RevPAR ($159.73) for 2023 reached record levels for the second year in a row. This article examines the latest trends and developments that are relevant to the Las Vegas casino and hotel markets.

Shannon Okada
By Shannon Okada, Managing Director of Gaming with HVS, HVS
Las Vegas, Nevada, United States
Ad Tambourine One
All you need is one.

Some call it a website with a booking engine built in. Some call it a booking engine with a website built in. We call it One.
Tambourine
Opinion Article

Waterparks Maintain Momentum in 2024 Amid Growth and New Opportunities

In 2023, waterpark owners and operators saw a more competitive market as attendance levels remained similar to 2022 while ticket pricing growth was more subdued. This occurred due to increased competition from a variety of additional attractions and entertainment venues in the post-pandemic economy. In 2023, 16 indoor waterpark openings and expansions added 480,000 square feet of indoor waterpark space while twelve new outdoor waterparks opened. New growth is forecasted for indoor and outdoor waterparks in 2024 as several large-scale projects will open that will alter the waterpark landscape. These projects will continue to encourage existing properties to innovate and update to keep market share. The planned merger of Cedar Fair and Six Flags will create the largest owner-operator of outdoor waterparks in North America.

David Sangree
By David Sangree, MAI, CPA, ISHC, is President of Hotel & Leisure Advisors, Hotel & Leisure Advisors (H&LA)
Opinion Article

Hotel Market Beat 2023 - Italy

Following a slow start, hotel investment activity surged in the second half of 2023, exceeding €1 Bn (+74% vs H2 2022). Total investment volumes for 2023 amounted to €1.5 billion (+1% vs 2022), reaffirming hospitality as a leading sector in the Italian real estate market. Key transactions included the acquisitions of Six Senses Rome, Aermont Pellicano Portfolio, and the sale of Blackstone’s 35% stake in HIP.

Cushman & Wakefield
Italy
Opinion Article

2023 European Hotel Transactions

High inflation and consequential rises in interest rates had major impacts on investment markets throughout 2023, including slowed hotel transaction activity in Europe. Reaching €10.7 billion overall[1] , total volume was 19% lower than in 2022, which represented the second lowest level of investment in the last decade. There were 6% fewer transactions than in 2022, indicating that the average price per room was also down in 2023.

Matthias HechtSerena YangGauthier Champlong
By Matthias Hecht, Serena Yang, and Gauthier Champlong
Opinion Article

Hotel Market Beat 2023 - Spain

Spain was the most active hotel investment market in Europe, with €4.2Bn transacted during 2023, a 44% increase relative to 2022. Portfolio dealsrepresented more than half of 2023 volume, among which are the sale of Blackstone’s 35% stakes in HIP to GIC (63 properties out of 77 in Spain) andPortfolio Equity Inmuebles to ADIA (17 hotels). Sovereign funds and other players with less reliance on debt drove the activity.

Albert GrauBruno Hallé
By Albert Grau and Bruno Hallé
Spain