Markets & Performance Reports - Hospitality Net

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December 17, 2019

Luxury Hotels: Elevated Occupancy and Expenses

Despite the relatively high cost of construction and complexity of operations, developers are still attracted to owning and managing luxury hotels. As of August 2019, STR reports that just 0.7 percent of the hotels (2.3% of rooms) in the United States are chain-affiliated luxury hotels. Concurrently, the STR pipeline report shows that 1.2 percent of the properties (2.9% of rooms) either under construction or planned for development meet this criterion.

By Mark Woodworth and Robert Mandelbaum

December 5, 2019

Recovery continues in French travel market

Following several challenging years, recovery continues in the French travel market, according to Phocuswright's latest travel research report, France Online Travel Overview 2019. Since the election of reformist President Emmanuel Macron in 2017, the country has reduced its budget deficit while curtailing unemployment and restoring consumer confidence. Unfortunately, the country's reputation as a destination was badly affected by the violent Yellow Vest protests in early 2019, which disrupted locals and tourists alike. And the travel sector's reputation has also been tarnished by several high-profile bankruptcies in late 2019, most notably the collapse of industry giant Thomas Cook and the failures of the number two and three French airline players — XL Airways France and Agile Azur. Though unrelated, these near-simultaneous events have cast an air of malaise over the French travel market, casting a dark shadow over what would otherwise have been a stellar year.

November 29, 2019

Trump Hotel prices down 16% since Trump became president

International travel money expert Equals has revealed the cost of a stay in Trump hotels around the world is currently 16% lower than the weekend of the presidential inauguration in January 2017, equivalent to an average price drop of £661 per room.

November 13, 2019

Context matters: HSMAI members on signs of a downturn

Where the industry stands in terms of a downturn remains a question for many, and sales and marketing experts are no exception. During a recent think tank held in conjunction with the Hospitality Sales and Marketing Association International's Sales Leader Forum near Dallas, Allison Handy, SVP of sales, marketing and revenue optimization at Prism Hotels & Resorts, posed this question: "Is our industry creating its own recession?"

September 18, 2019

Managing RevPAR For Profits

Per the name, the historical role of revenue managers has been to maximize revenue - specifically rooms revenue or RevPAR. RevPAR growth is achieved by increasing occupancy and/or average daily rates (ADR).

By Bram Gallagher and Robert Mandelbaum

August 20, 2019

U.S. Hotel Interest Coverage

According to the March 2019 edition of CBRE's Hotel Horizons® forecast report, RevPAR growth for the U.S. lodging industry will be limited to under 2.5 percent through 2020. Further, CBRE is projecting a 0.6 percent decline in RevPAR for 2021 as CBRE expects the economy to slow down during the year. The combination of modest increases in revenue and rising operating expenses (especially labor) make hotel owners and operators nervous about their ability to enjoy profit growth the next few years.

By Jack Corgel and Robert Mandelbaum

July 8, 2019

How the UEFA Champions League Final Impacted Madrid Hotel Profits

Hosting a premier sporting event isn't just a mark of stature—it can be a boon for the city's hotel industry. From the Super Bowl and the World Series in the U.S., to the World Rugby Sevens Series held in a variety of locations, from the UAE and South Africa, to New Zealand and Hong Kong, sporting events are a facilitator of traveler demand.

By David Eisen, Content Director, Media, Questex

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July 2, 2019

Brussels Hotel Market – Recovery Now Complete

Brussels, with a population of approximately 1.2 million, enjoys a strategic location in the heart of Western Europe, making it both a regional metropolis and an international hub. In addition to its role as capital of Belgium, the city is home to NATO's headquarters and is widely known as the 'capital of Europe', hosting both the European Parliament and the European Commission. Described as the 'new Berlin' by the New York Times in 2015, an eclectic and creative facet of Brussels has recently emerged, represented by its community of artists, architects and designers.

By Lionel Schauder and Sophie Perret

Brussels, Belgium

June 10, 2019

HotStats Releases U.S. Annual Hotel Performance Tracker 2019

HotStats, the global leader in monthly profitability data benchmarking for the hotel industry, has released findings of U.S. hotel performance for 2018, in its "Profit Matters: U.S. Annual Report Performance Tracker."

June 7, 2019

What Is TRevPAR (Definition and Why It Matters)?

In a previous blog post, I took aim at RevPAR. My pursuit: to puncture the long-held notion that it's the most exemplary data point to consult within the hospitality industry. And, according to one comment, I succeeded in doing so (thank you, Don Weintraub, you made my mother very proud).

By David Eisen, Content Director, Media, Questex

March 18, 2019

HVS Market Pulse: Detroit, MI

Detroit's image of a proper rust-belt city in the depths of despair during the Great Recession and the subsequent filing of bankruptcy in 2013 has been reshaped into an inspiring story of resilience and resurgence. Detroit's economy is strong, with unemployment decreasing every year since 2014 and an employment base that continues to diversify. While the economic mainstays—General Motors, Ford, and Fiat Chrysler—still thrive in the city, other major employers belong to the financial and healthcare sectors; moreover, the technology sector continues to grow.

By Brandon Leversee, Vice President with HVS Detroit, HVS

Detroit, Minnesota, United States

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March 1, 2019

HVS Market Pulse: Minneapolis - After the Super Bowl

Surrounded by the beauty of lakes and the Mississippi River, Minneapolis is home to many Fortune 500 companies and more than 11,000 hotel rooms. High quality of life, diversity of employers, and leisure attractions continue to entice demand and an ensuing level of hotel development to the area.

By Justin Westad and Tanya Pierson

Minneapolis, Minnesota, United States

February 13, 2019

Slowing U.S. Hotel Growth Could be Worst in 10 Years

Growth in the booming U.S. hotel industry is cooling off, data tracker STR forecasts, setting the stage for the lodging industry's worst stretch since 2009.

The Wall Street Journal

December 21, 2018

2019 United States Hotel Industry Outlook

We live in interesting times. Each day, we cannot be sure which way the stock market will swing, with its volatile nature and seemingly knee-jerk reactions to the trade and policy headline of the day. If the stock market serves as a leading indicator of times to come, the economy in 2019 is likely to slow in comparison to the one to which we've become accustomed. Despite this trajectory, other factors still signal that the hotel industry isn't likely falling off a cliff anytime soon.

By Rodney Clough, President - HVS Americas, Denver, HVS

November 12, 2018

Market Snapshot: Asia Pacific 2018

Transaction activity has been observed to be on a downward trend from 2013 until 2017, owing to the transactions of Dalian Wanda China portfolio to R&F Properties. Since then, the frequency of transactions have been high, with 228 recorded transactions from 4Q2017 to 3Q2018, slightly lower than the 251 recorded the previous four quarters.

By Hok Yean Chee, Regional President of HVS Asia Pacific, HVS

October 22, 2018

U.S. Lodging Performance Fell Short Of Budget In 2017

In 2017, the actual achieved levels of occupancy, average daily rate (ADR), total revenue and profits for U.S. hotels were less than their respective budgeted amounts. After a five-year period (2011 through 2015) of extremely accurate budget projections, this marks the second consecutive year that owners and operators failed to meet their operating goals.

By Robert Mandelbaum, Director of Research Information Services, CBRE Hotels

October 4, 2018

Hotel Industry – Q4 2018 and Beyond

Many of us who attended The Lodging Conference this past month heard Bernard Baumohl, Chief Economist for the Conference Board, provide his economic forecast. He covered topics in his usual fast, effective and entertaining style. Some interesting takeaways were that business spending is not up much, oil is going to see oversupply and is up markedly due to politics (not the market), and GDP will be up 3 percent this year, 2.2 percent next year and 1.4 percent in 2020, according to the Consensus Forecast.

By Bob Rauch, President of RAR Hospitality, R.A. Rauch & Associates, Inc.

September 20, 2018

North American Hoteliers Kick Off Second Half of 2018 with Continued Steady Rates and Bookings; Q2 2019 Shows Signs of Softness

TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company's August 2018 North American Hospitality Review (NAHR). According to this data, the second half of the year has stable rates and bookings across all travel segments, up 1.80 percent in average daily rates (ADR) and 0.51 percent in bookings in the third quarter when compared to the prior year. Group travel in Q3 is also up 1.81 percent in ADR and 0.50 percent in bookings, and the transient segment overall is up 1.80 percent in ADR and 0.52 percent in bookings in the same time period.

TravelClick, Inc.

September 20, 2018

Ten Years Later: Has The U.S. Lodging Industry Really Recovered?

Lodging is a cyclical industry meaning that it passes over time through four distinct phases: peak, contraction, trough and expansion. Most industry participants believe that 2007 was the previous peak of the current business cycle following six years of expansion from the 2001 industry recession. According to STR, the demand for lodging increased for six consecutive years from 2002 through 2007, while average daily room rates (ADR) grew in excess of 4.5 percent during the latter four years. Per CBRE Hotels' Trends® in the Hotel Industry survey, gross operating profits (GOP) were growing at a 10 percent annual pace leading up to 2007.

By Robert Mandelbaum and Keval Rama

September 7, 2018

To Q3 and Beyond: Hotel Industry Forecast for San Diego, Arizona, Colorado, and Other U.S. Markets

U.S. Economy

By Bob Rauch, President of RAR Hospitality, R.A. Rauch & Associates, Inc.