Reports

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

Bermuda

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.

TravelClick, Inc.

United States

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)

United States

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

Israel

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-review.com

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.

tourism-review.com

Mexico

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.

seekingalpha.com

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

Richmond, Virginia, United States

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.

R. A. Rauch & Associates, Inc.

United States

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.

TravelClick, Inc.

United States

U.S. Convention center hotels boost both supply, demand

Municipalities across the United States are seeking approvals, funding or public-private partnerships to develop or redevelop their convention centers with an attached, big-box hotel. City councils in Kansas City and Oklahoma City are in process of getting approvals and funding secured while Portland, Oregon, and Chicago have such projects underway. One of the latest convention center hotel openings in the United States was the 600-room Hilton Cleveland Downtown, which opened on 1 May 2016.

By John Kelley, III, Senior Vice President, Newmark

United States

Is London Tourism Resilient To Terrorism? | tourism-review.com

On June 3, London was struck by a terror attack on London Bridge. As a result, 8 people were killed and 48 injured. In May, a suicide bomber detonated a bomb at the Manchester Arena, killing 23 people. It is clear, that the attacks had to have an impact on London tourism. But how significant was the impact and is the British capital actually a safe city?

Despite the terror attacks, London is showing signs of resilience. After the London Bridge attack, there was no significant wave of cancellations of air travel to the UK. But there has been a slow-down in the new bookings, according to ForwardKeys. Similar trend has been recorded all around Great Britain.

tourism-review.com

London, United Kingdom

Key Takeaways: 2017 NYU International Hospitality Industry Investment Conference

Manhattan's Marriott Marquis once again welcomed the most prominent leaders in the hospitality industry for the 2017 NYU International Hospitality Industry Investment Conference, held June 5 and 6. Over the two-day event, industry experts gathered to share their opinions on a wide variety of ownership, management, branding, lending, and economic topics. Despite uncertainties in today's global political and economic climates, the overall tone remains one of cautious optimism.

By Chris Fernandes, Senior Project Manager at HVS New York, HVS

New York, New York, United States

HVS 2017 Hotel Cost Estimating Guide

HVS Design and Jonathan Nehmer + Associates (JN+A) are proud to announce the completion of the 2017 Hotel Cost Estimating Guide. The Guide is a comprehensive listing of capital expenditure construction and FF&E costs for hotel renovations in the USA.

By Warren Feldman, Scott Rosenberg, and Christine Shanahan

EY's Global hospitality insights - Top 10 thoughts for 2017

The hospitality industry continues to play an integral and robust role in the global economy. In 2016, key themes in the sector included innovation, globalization, technology and consolidation. Cross-border investment, large-scale mergers and acquisitions, and technology, such as data analytics, have changed the global landscape for hospitality executives.

Ernst & Young

United States

Austria And Other European Destinations In Low-Price Trap | tourism-review.com

European countries are currently experiencing a slight tourism industry boom, however some problems become more and more obvious. One of them could be called the low-price trap.

For example, in Austria, despite the increasing number of overnight stays, many Austrian travel and hospitality providers are facing existential problems. ÖHV (Austrian Association of Hoteliers) boss Michaela Reitterer sees the core of the industry’s problem in low-price tourism.

There are two sides of the current tourism situation in Europe. Official bodies are celebrating an increase in the number of overnight stays and sale increases. However, the industry representatives see the situation somewhat differently.

tourism-review.com