HVS Market Pulse: Lake Charles Metro Area
The following article outlines the impact of industrial growth in Metro Lake Charles on the area's hotel industry.
By Bunmi Oyinloye, Senior Vice President, Leader - Houston Office, Houston, HVS
Reports
South Korea Overview Opportunity: High-Speed Rail and Winter Olympics
Korea is a popular tourist destination for both Japanese and Chinese visitors, who, when combined, accounted for nearly 50% of its total international visitors in 2017. The geographic proximity plus its charming tourism offerings are ideal for short getaway visits, particularly to the capital city Seoul.The Korean tourism industry is driven by the peppy cultural trend called 'Hallyu', also known as the Korean wave. Originating from popular media, including K-Pop artists and TV dramas, it gradually spread to industries such as cosmetics, food, electronics, etc. According to the Korea Foundation for International Culture Exchange (KOFICE), the Korean wave effect on production inducement was estimated to be approximately KRW 15.6 trillion (USD 14bn) in 2015.Among the numerous regional tourism destinations, Korea consistently ranks within the top 5 destinations for Chinese travelers for more than 10 consecutive years.
By Jae Hyun YOO and Daniel Voellm
U.S. Markets with the Largest Construction Pipelines & Highest 2018 Growth Rates
According to analysts at Lodging Econometrics (LE), the five U.S. markets with the largest hotel construction pipelines by project count are: New York with 169 Projects/29,641 Rooms, Dallas with 159 Projects/19,149 Rooms, Houston with 148 Projects/16,158 Rooms, Nashville 119 Projects/15,992 Rooms and Los Angeles which has 115 Projects/17,155 Rooms in its pipeline. The top market in the U.S. by Census growth rate for 2018 is Nashville which is expected to grow its Census by 8.8% if all 27 Projects/3,703 Rooms of expected openings occur by the end of the year. Following is New York with a 7.3% growth rate for opening 50 Projects/8,437 Rooms and Seattle with 6.3% growth if the anticipated 20 Projects/2,890 Rooms open.
The HVS Quarterly Macau Update
With the introduction of various family-oriented resorts in the Cotai Strip, more diversified tourist base is embracing Macau as a destination, as compared to the casino crowd in the downtown area of old. The wide range of activities offered in these resorts, from gaming to non-gaming, have led tourists to visit Macau. The newly-opened resorts induced demand, notably tourists from mainland China, South Korea, and Japan, which greatly improved hotel performance in both occupancy and average rate (ADR).
By Christy Tung and Daniel Voellm
HVS Market Pulse: Paris - Spring in the Step
This market pulse provides an overview of the tourism and hotel market in Paris, France. It discusses recent tourism trends and the causes for optimism for 2018 as well as providing a summary of the extensive hotel pipeline.
By Sophie Perret and Dayk Balyozyan
Market Pulse: Annapolis, MD
Annapolis, Maryland's capital, is a historic seaport located 30 miles south of Baltimore and 30 miles northeast of Washington, D.C. Annapolis relies on tourism, state and local government activity, and renowned institutions of higher education for its economic livelihood. The Annapolis hotel market has been very stable over the last five years, with no proposed hotel development on the horizon. There have, however, been two hotel transactions in the last year, indicating the attractiveness and economic viability of this high-barrier-to-entry market to investors. Average rates for the city's hotels have risen steadily since the recession given the limited entrance of new supply, coupled with economic development in Annapolis and Anne Arundel County, as well as overall growth in the Washington, Baltimore, and the greater Mid-Atlantic region. The following article highlights several the fundamentals of the Annapolis economy and lodging market, as well as area development projects.
By Chelsey Leffet and Marcus Lee
The Outlook For U.S. Hotel Profits In 2018
Since 2014, U.S. lodging industry owners and operators have seen a steady decline in the pace of revenue growth. In 2014, rooms revenue per available room (RevPAR) increased by a healthy 8.2 percent according to STR. Per the December 2017 edition of CBRE's Hotel Horizons®, RevPAR is forecast to increase by just 2.5 percent in 2018. Facing lackluster revenue growth, hotelier's sights are now focused further on down the operating statement to determine what the impact of slow top-line gains will be on bottom-line profits.
By Robert Mandelbaum and Bram Gallagher
HVS Market Pulse: Birmingham, AL
Birmingham's economy is largely driven by the healthcare sector, with top employers such as the UAB Health System, Baptist Health System, and St. Vincent's Health System, whose hospitals and clinics are expected to change their name to Ascension. The name change is part of a greater effort to coordinate healthcare efforts across the entire Ascension system, which is the largest chain of Catholic hospitals in the world. The UAB Healthcare System is also undergoing some changes. U.S. News & World Report's top ranked hospital in Alabama added seven operating rooms to the Callahan Eye Hospital in April 2017, while in August 2017, a new, 60,000-square-foot expansion of the John N. Whitaker Building opened. Known as the Whitaker Clinic, the new facility includes primary care, dermatology, podiatry, and rheumatology clinics. Additionally, the Ronald McDonald House Charities of Alabama's three-story, 28,543-square-foot addition opened in January 2018. The healthcare sector is the largest demand driver for hotels in and around Downtown Birmingham, with year-round demand driven by patients, relatives of patients, doctors, and pharmaceutical sales representatives.
By Benjamin Levin, Chief Investment Officer, Cliffrose Group
The HVS Quarterly Taiwan Update
The positive impact from Taiwan's tourism source market diversification supported its increase in visitor arrivals, which witnessed a 10.1% YoY rise to 3.1 million in 2017 quarter four. To compensate for the loss of mainland Chinese tour groups, Taiwan strategically improved its relationships with other Asian countries, particularly in Southeast Asian countries. Notably, South Korea passed the 1 million visitor arrivals mark in the fourth quarter. Amid the shift of source markets, hotel players in Taiwan experienced the rebalancing towards more value-based demand.
By Christy Tung and Daniel Voellm
HVS Market Pulse: New Orleans, LA
New Orleans has continually been voted one of the top leisure destinations in the country; in 2017, the city and select institutions ranked top on lists from Condé Nast Traveler, Travel + Leisure, Southern Living, and Food & Wine, among others. By March 2018, the city had earned new accolades from almost 30 publications, notably starting off the year as the first stop on the New York Times' "52 Places to Go in 2018." The city's visibility increased in many ways in 2017, from hosting the relocated NBA All-Star Game, to providing the backdrop for the movie Girl's Trip, and counting down to 2018 for the central time zone on Dick Clark's New Year's Rockin' Eve. While the hospitality industry remains a mainstay of this Louisiana market, continued development in the CBD should help bolster activity in the city.
By Lauren Hock, Senior Vice President and Leader of HVS New Orleans, HVS
HVS: Kenya
Kenya lies along the eastern coast of Africa. An estimated (2016) 46 million people reside in Kenya with a population increase of around one million people per annum. Kenya is establishing itself as an important gateway to the high growth East Africa region. In November 2016, Kenya was in the top 10 most improved economies in the annual World Bank report on the ease of doing business. The country moved up 21 places from 113th to 92nd. Kenya is outperforming most of its African counterparts in terms of infrastructure with a number of large projects expected to continue attracting foreign investment. In addition, the country has just completed the SGS acquisition of compliance certification in the Oil and Gas sector and the oil sector is thus expected to become a significant economic driver. ECONOMIC INDICATORS - KENYAKenya has made significant structural and economic reforms that have contributed to sustained economic growth. The country has received support of the World Bank Group, International Monetary Fund and other development partners and they have brought positive economic changes to the country. The new constitution and improved court system pushed investor's confidence and improved the political situation in the country.
By Laura Dutrieux, Consulting and Valuation Analyst a HVS Cape Town, HVS
The HVS Quarterly Hong Kong Update
As one of the major pillars of the Hong Kong economy, the tourism sector in 2017 marked a good year given that the number of visitor arrivals bounced back from 2016 and reached 58.5 million, albeit not as strong as the peak at 60.8 million visitors in 2014 and 59.4 million visitors in 2015. Particularly, the fourth quarter recorded the highest number of visitors in three years, thanks to the Golden Week and Christmas holidays that charmed both mainland Chinese and non-mainland-Chinese visitors. Hotels in the city also benefited from the boost in visitor arrivals, where occupancy and average rate both recorded growth.
By Christy Tung and Daniel Voellm
German hoteliers set for profit squeeze in 2018
The German accommodation market is in the midst of a strong period of high demand, with the number of overnights stays in German accommodation establishments with 10 or more beds rising from an estimated 436.4 million in 2015 to 459.6 million in 2017. Despite the recently buoyant market, 2018 will see hotel profits in the country under pressure as demand growth from German travelers slows, room supply increases and costs grow says a new report, an excerpt for which can be downloaded for free here.
EyeforTravel report finds Germany’s outbound market will have its best performance in years in 2018
Germany's outbound market accounts for over 30% of the overnight stays made by EU citizens but the market is set to get even bigger in 2018 on the back of strong economic performance, receding security concerns and high consumer confidence finds the report, an extract of which can be downloaded for free here.
Germany’s outbound market will have its best performance in years in 2018
Germany's outbound market accounts for over 30% of the overnight stays made by EU citizens but the market is set to get even bigger in 2018 on the back of strong economic performance, receding security concerns and high consumer confidence finds the report, an extract of which can be downloaded for free here.
Barcelona's Stress Test – Will the hotel market ride it out?
This article presents recent supply and demand trends for Barcelona, before discussing some of the sociopolitical events that have impacted the market over recent months, as well as their effect on hotel performance and the outlook for the coming year.Barcelona is Spain's second-largest city, with a population of approximately 1.6 million in 2017, and is the capital of Catalonia. Located on the Mediterranean coast, 180 km southwest of the French border, Barcelona is the country's principal seaport and is the third-largest port in the Mediterranean region.Since the organisation of the Olympic Games in 1992, Barcelona has become a favourite short-break leisure destination in line with cities such as Paris, London and Amsterdam. It is also an increasingly important port for cruise ships. In addition, Barcelona is an established centre for meeting, incentive, conference and exhibition (MICE) business: the city was 3rd in the International Congress and Convention Association (ICCA) ranking in 2016 with a total of 181 meetings.
By Sophie Perret and Magali Castells
HVS: Cape Town
Cape Town is South Africa's oldest city and the second-most populous city in the country. It is the provincial capital and primary city of the Western Cape. As the seat of the National Parliament, it is also the legislative capital of the country. The city is famous for its harbour as well as its natural setting in the Cape floral kingdom, including such well-known landmarks as Table Mountain and Cape Point. Cape Town is also Africa's most popular tourist destination.Cape Town is one of the most multicultural cities in the world, reflecting its role as a major destination for immigrants and expatriates to South Africa. As of 2016, the city had an estimated population of 3.8 million. The city was named the World Design Capital for 2014 by the International Council of Societies of Industrial Design.EXCHANGE RATE USD:ZAR The economy is sophisticated, relying on the tertiary sector, primarily the financial and insurance sectors, and tourism. Infrastructure is adequate with extensive roads networking the city and the electricity network reaches most areas in the city. However, Cape Town is suffering from a massive drought that has an impact on daily activities and tourism. ECONOMIC INDICATORS - SOUTH AFRICA
By Laura Dutrieux, Consulting and Valuation Analyst at HVS Cape Town, HVS
Spring Hotel Outlook Shows Stability and Consistency in North American Markets
TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company's March 2018 North American Hospitality Review (NAHR). According to this data, North American hoteliers are continuing to see growth across all travel segments, up 0.7 percent in average daily rates (ADR) and 1.7 percent in bookings during the first quarter of 2018. This marks an ongoing positive trend from the beginning of the year.Transient travel in particular is experiencing solid growth in bookings, up 2.2 percent overall, 1.7 percent in transient business and 2.6 percent in transient leisure. This segment is also seeing a boost in revenue per available room (RevPAR), up 3.3 percent for transient travel overall, 2.9 percent for transient business and 3.6 percent for transient leisure. "With the spring travel season kicking off, the improved month-over-month performance across business and leisure transient bookings is very encouraging news for hoteliers," said John Hach, senior industry analyst, TravelClick. "Additionally, as we head into the second quarter of 2018, the data shows that both rates and occupancy are continuing to hold steady for now." Twelve-Month Outlook ( March 2018 - February 2019) For the next 12 months (March 2018 - February 2019), transient bookings are up 3.4 percent year-over-year, and ADR for this segment is up 2.3 percent. When broken down further, the transient leisure (discount, qualified and wholesale) segment is up 4.7 percent in bookings, and ADR is up 2.2 percent. Additionally, the transient business (negotiated and retail) segment is up 1.4 percent in bookings, and ADR is up 2.8 percent. Lastly, group bookings are slightly up 0.4 percent in committed room nights* over the same time last year, and ADR is up 1.3 percent. "Hoteliers today have a number of available tools in their toolbox to differentiate themselves from the competition," added Hach. "At the same time, consumers are becoming increasingly sophisticated in selecting hotels that cater to very specific and time-sensitive needs. Therefore, it becomes especially important for hoteliers to actively invest in digital marketing and forward-looking business intelligence solutions to maximize online exposure and revenue throughout the upcoming peak travel season."
HVS Market Pulse: Downtown Chicago, IL
Chicago, America's "Second City" or, in the words of the poet Carl Sandburg, the "City of the Big Shoulders," has long enjoyed global recognition for its stories, intrigue, and ingenuity. The city's tourist attractions, international companies, celebrities, special events, and North America's largest convention center place it among the prime destinations in the U.S. for business, leisure, and conventions. The diverse neighborhoods surrounding the Loop are abundant in music, art, and culture, while Downtown Chicago's commercial and tourist attractions include Willis Tower (formerly Sears Tower), Navy Pier, and Millennium Park.
By Dana Waud Floberg and Stacey Nadolny
HVS In Focus: Capri Island, Italy
Capri, together with Ischia and Procida, is the one of the three main islands of Campania, a region in Southern Italy with an area of about 13,500 km² and a population of 5,836,317 (2016). The distinctive features of the region are its mild climate, the abundance of art and historical sites, the strong passion for music and food as well as the presence of Mount Vesuvius, one of the most active volcanos in Europe located in the Gulf of Naples. Being largely washed by the Tyrrhenian sea, many leisure tourism destinations were developed over the years in Campania, such as Capri, Amalfi, Positano and Sorrento; besides Naples, which is the regional capital.Capri's area spans over approximately 10,5 km2, while the inhabitants of the two municipalities (Capri and Anacapri) are about 15,000. Its precipitous coast and its numerous caves give a very peculair configuration to the natural setting of the island. Moreover, Similar to Campania region, music, food and history are always there, but what established the island as such an attractive tourist pole is the exclusivity and the "dolce vita" that visitors experience during their stay, through the sea life and the nightlife, which certainly revolves around the timeless "piazzetta".The charm of this island is remembered since the Roman Empire. Some of the first known admirers and visitors of Capri were the Emperor Augustus, that made the island his private dominion, and the Emperor Tiberius, who built 12 properties to retire from Rome's life, some of them are still visible today. The current tourism status begun with the two World Wars, where the island hosted many political figures which gave birth to a small political-literary oasis. After that, a gradual change of the island's economy accomplished through a progressive decline in agriculture and coral production in favour of the tourism sector.