Indonesia Hotel Watch 2017
The fifth edition of the Indonesia Hotel Watch highlights Indonesia's current hospitality landscape, analysing domestic and international demand and hotel supply dynamics of classified and non-classified hotels.
Reports
HVS Lodging Tax Report - USA 2017
In this sixth annual Lodging Tax Study, HVS Convention, Sports, and Entertainment Consulting surveys lodging tax rates and revenues across the United States. Our study includes a broad range of cities and tracks policy trends in lodging tax impositions. This research identifies the lodging tax rates levied at the state, county, city, and special district levels. We provide data on the collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest cities in the United States.
By Thomas Hazinski and Alex Moon
U.S. Hotel Demand Hits an All-Time High
Hotel demand has just reached an all-time high in the U.S., according to CBRE Hotels' Americas Research. Occupancy levels and demand for rooms are also buoyant in Europe and Asia Pacific.
By Richard Barkham, Ph.D., Global Chief Economist, CBRE Hotels
Hurricane Harvey will send ripples through U.S. hotel industry, expert says - usatoday.com
Hurricane Harvey put a big asterisk beside a U.S. lodging market forecast at the Southern Lodging Summit in Memphis on Wednesday. Hotel industry expert Jan Freitag, senior vice president, strategic development for STR, formerly Smith Travel Research, fears Harvey could wipe out a year’s worth of gains in hotel room growth.
Kenya: Tourism stakeholders react to sector’s performance post elections
With diminutive effect from the elections anxiety, Kenya's tourism sector has withstood the pressures of uncertainties that resulted to some tourists having to hold their travel plans. As one of the most volatile sectors, tourism stakeholders remain obliged to Kenyans for choosing peace during a considerably fraught time. This, according to Cyrus Onyiego, Jumia Travel's Kenya Country Manager, is a factor that has saved the industry a major blow as compared to previous election periods.
By Josephine Wawira, Consultant, Jumia Travel
HVS Market Pulse: Boise, Idaho
Boise is closing in on the ranks of the top ten cities in which to live in the U.S., according to the 2017 survey by U.S. News & World Report. The reasons for the elevated ranking—number 12, as of this year—include affordability, job prospects, and overall quality of life. This reflects Boise's ascendance in other spheres, including population, visitation numbers, and the number of proposed hotels, especially in the city's downtown corridor.
By Breanna Smith, Senior Vice President, Portland, HVS
Travel and Hospitality Industry Outlook 2017 | deloitte.com
Will 2017 be a growth year for the travel and hospitality industry? Deloitte’s recent industry analysis reports that forward thinking companies with an eye towards innovation could turn some of the challenges into opportunities in the coming year. Looking back to our 2016 travel and hospitality industry trends report, shifts in the global economy, game-changing innovation, geopolitical turmoil, natural disasters, pandemics, and rising consumer demands reshaped the travel landscape. Our 2017 travel and hospitality industry outlook points to more of the same.
Hotel Bulletin Q2 2017: UK Sees Record Level Of Room Openings As Q2 2017 Reports Strong Results For Hotel Sector
The first six months of 2017 has seen the highest number of hotel bedrooms opening in the UK since 2012, according to Hotel Bulletin Q2 2017, published this week by HVS, AlixPartners, STR and AM:PM. Growth in hotel RevPAR [rooms revenue per available room] in all but two UK cities; double-figure growth in Edinburgh, Cardiff and Belfast; and London recording an 8% uplift demonstrates that international visitors are still coming to the UK on the back of a weaker pound and a number of high-profile events. The hotel sector is well placed for further growth in visitor numbers with more than 7,500 new hotel bedrooms opening during the first half of 2017, up 40% on last year's figures. Budget brand Premier Inn continued its expansion during Q2, with two new hotels opening as well as the group's fifth hub by Premier Inn, at London's King's Cross. However, Q2 also saw notable activity from independently branded hotels, striking an alternative to the more traditional hotel offer. 'While there will always be a strong demand for branded hotels, we are certainly seeing a growing appetite amongst hotel guests, primarily those in London, for something a little different. Boutique hotels in quirky buildings with a strong stamp of personality and a more unusual proposition are becoming very fashionable amongst discerning customers,' commented HVS London chairman, Russell Kett. Typical examples include the new 252-room, five-star The Ned, opened by Soho House in May. The hotel, converted from the former Midland Bank, boasts nine dining venues and a bar in the Bank's former vaults. In a similar vein, plans have been submitted for a four-star, 214-room Hoxton Hotel in London's Shepherd's Bush with a café and leisure scheme, a third London hotel for Hoxton Hotels. A number of designer hotels have also opened in Shoreditch, billed as London's new creative hub, including the high-end Curtain Hotel and The Nobu Hotel, a first for London, although the third Nobu restaurant to open in the capital. 'A recognised brand name is less important in London as it's a strong market. The new, independent hotels emerging like the Hoxton benefit from their association with Soho House for their restaurants and bars; and The Ned benefits from its co-ownership by Soho House,' added Kett. There is also a clutch of luxury hotels in London's hotel pipeline bringing new brands to the capital such as the Armani at Admiralty Arch, Raffles in the Old War Office, Belmond in the redeveloped Cadogan Hotel, and Cheval Blanc in the former US Embassy. In addition, The Peninsula London on Hyde Park Corner, due to open in 2021, will have the largest rooms of any luxury hotel in the city. 'This activity confirms that London is still a magnet for high-end global hotel brands and demonstrates that the hotel sector is adapting to customer demand and the need to stay ahead of the game by offering something on-trend and edgy,' Kett said.
By Russell Kett, Chairman at HVS - London Office, HVS
Market Pulse: Bermuda, the Host Island for CHICOS 2017
Known for its iconic pink-sand beaches, the island of Bermuda is nestled in the North Atlantic Ocean, just 650 miles east off the coast of North Carolina. Most associate the island as part of the Caribbean, but Bermuda is actually located hundreds of miles to the north. Less than a two-hour flight from New York, Bermuda is an ideal tourist destination with mild temperatures and a unique culture, growing in popularity among younger, experiential travelers and hotel investors.
By Kristina M. D'Amico, Senior Vice President - Director, Caribbean Region, Miami, HVS
Summer Continues with Inconsistent Rates and Bookings for North American Hoteliers
As North American hoteliers push forward into the third quarter of 2017, both average daily rates (ADR) and bookings remain inconsistent across all travel segments, according to new data from TravelClick's July 2017 North American Hospitality Review (NAHR). This marks an ongoing trend for the year.
U.S. Hotels See Enthusiasm Amid Headwinds in Q2
Although the eight-year bull market in the US lodging industry is showing signs of deceleration, the sector posted record performance metrics on a national level during 2016 including: 65.5 percent occupancy, $124 average daily rate, $81 revenue per available room, 1.8 billion available room nights, 1.2 billion occupied room nights, and $149 billion in rooms revenue. Q1 2017 compared with Q1 2016 indicates a continued increase in every major category of measurement. Although US Gross Domestic Product (GDP) growth remains muted, anticipated legislation relating to tax reform and infrastructure spending should accelerate GDP and positively impact demand for transient lodging. Additionally, the current US Presidential administration's pro-business policies are seemingly beneficial for the sector.
By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)
Israel Hotel Market Overview 2017
Israel's hotel sector saw a relatively stable performance during 2016 with significant potential for growth due to a rise in tourism and expansion of the sharing economy. This article explores the hotel performance and development pipeline in Israel.
By Russell Kett and Lionel Schauder
European Tourism – Most Countries Show Positive Results | tourism-review.com
European tourism sector is booming. According to the European Tourism Commission's latest report "European Tourism 2017 - Trends & Prospects", 28 out of the 30 destinations registered growth in the arrivals of foreign tourists in the first half of 2017 - some even in the double-digit range.
On the top of the ranking is Iceland which reported 56 % more tourism arrivals. Significant growth is also reported by Montenegro (+ 25%), Malta (+ 23%) and Cyprus (+ 18%). These countries all show that they can also score increasingly in the off-season.
Finland (+ 18%) and Bulgaria (+ 17%) also belong to the countries boosting European tourism sector. Portugal, Serbia and Croatia (+ 15% each) reported significant increase as well.
Tourism Sector In Mexico Is Stronger Than The Oil Industry | tourism-review.com
Far from being affected, the tourism sector in Mexico benefited from the volatility and depreciation of the exchange rate, the outcome of the 2016 electoral process in the United States, and the international uncertainty that negatively impacted other sectors of the economy.
Tourism sector in Mexico represents 8.7% of the country's Gross Domestic Product (GDP), a figure exceeding the contribution of oil industry, which amounts to 7%, according to Teresa Solis Trejo, Deputy Director of Planning and Tourism Policies of the Ministry of Tourism.
"The tourism sector is an industry that, thanks to its size and performance in recent years, is becoming one of the driving forces of the national economy," the federal official said.
The Serviced Apartment Sector In Europe: No Longer the Underdog?
Another year has passed where the serviced apartment sector was able to consolidate its position in the lodging sector. This year's article looks at the recent trends, discusses our analysis of the 2017 survey results and recent transaction evidence, and provides an outlook of the coming months in terms of pipeline.
By Nicole Perreten, Consulting & Valuation Analyst, HVS
Remember When Airbnb Was Supposed To Kill The Hotel Business? | seekingalpha.com
From 2013-2015, the financial media wrote countless obituaries projecting the impending death of the hotel business at the hands of the sharing economy’s newest darling: Airbnb.
At the time, Airbnb was raising capital at valuations that exceeded the market capitalization of the entire hotel REIT industry. We questioned Airbnb’s actual appeal to the mass market.
Entering 2016, the consensus opinion on hotel REITs was overwhelmingly negative on fears of oversupply, weakening demand, and this severe threat from Airbnb.
Over the last 52 weeks, hotel REITs have outperformed the REIT index by 20%. Q1 2017 was the best year on record for the industry and Q2 looks stronger.
Using Google Trends data, we see that the growth of Airbnb is already decelerating. Regulation has caught up with the “illegal hotel” model of the commercial use of short-term Airbnb rentals.
The Annual HVS Asia-Pacific Hotel Operator Guide 2017 – Excerpt
The publication continues to serve owners as a reference for which operator has a strong presence in their home market and in potential future markets further ashore as well as key feeder markets across the region.
By Pawinee Chaisiriroj, Senior Manager at HVS Bangkok, HVS
HVS Market Pulse: Richmond, VA
Richmond, the state capital of Virginia, thrives on economic energy primarily driven by entities in the fields of law, finance, and tourism. Home to the Fourth Circuit of the U.S. Court of Appeals, the Federal Reserve Bank, and nearly a dozen Fortune 500 companies, Richmond's hotel demand generators also include tourism draws such as craft breweries and world-class museums of art and science.
By Marcus Lee, Executive Vice President, Development, HVS
Mid-Year Report: 2017 Remains Strong
2017 is on pace to be a profitable year but it might spell the end of profitable growth as labor and health care costs are escalating beyond revenue increases. If that occurs, this would be the first year since 2010 where profits did not grow. Our outlook as of mid-year 2017 indicates it will be close but that we will fall short of another year of improved profits.
Stable Rates with Declines in Bookings Continue as U.S. Hoteliers Close Out First Half of 2017
Heading into the second half of the year, North American hoteliers are continuing to experience stable average daily rates (ADR) alongside declines in bookings during the second quarter of 2017, according to new data from TravelClick's June 2017 North American Hospitality Review (NAHR). This marks an ongoing trend for hoteliers this year.