Development USA & Canada Opinion Articles

June 11, 2024

How IHG Hotels & Resorts is Bringing a Hospitality Boom to the Lonestar State

They say everything’s bigger in Texas, and for IHG Hotels & Resorts (IHG), it just keeps getting bigger. Texas already is a booming state for transplants and travelers alike, with its growing population and diverse range of attractions drawing in hundreds of millions of visitors each year. This surge in tourism has led to an increased demand for guest accommodations, with more than 11,000 hotel rooms set to be built in the state this year alone. Economic impact from these new hotels will trickle down into the surrounding community, with guests venturing out to frequent restaurants, bars, shopping locations and attractions.

By Kevin Schramm, Senior Vice President, Development, IHG Hotels & Resorts Americas, IHG

Texas, United States

Opinion Article

May 15, 2024

Understanding the Current State of the U.S. Hotel Transaction Market

The hotel transaction market continues to face significant headwinds. Investors are still concerned about the prohibitive cost of debt, and with the chances of a summer rate cut from the Fed becoming slimmer, expensive debt may remain for the foreseeable future. Additional challenges to getting deals done are the bid-ask spread, rising operational costs, and extensive change-of-ownership property improvement plans (PIPs). As ownership groups consider placing their hotel assets on the market, they should consider how these headwinds are affecting buyer underwriting so that they have realistic pricing expectations.

By Josh Williams and Eric Guerrero

United States

Opinion Article

February 7, 2024

LW Hospitality Advisors (LWHA) Q4 2023 Select Major U.S. Hotel Sales Survey

At the dawn of 2024, a U.S presidential election looms amidst numerous geopolitical challenges including two major ongoing wars in Europe and the Middle East which threaten global economic growth. The good news is, thus far it appears the U.S. economy has avoided recession with many now perceiving continued growth, albeit subdued. Inflation has cooled, the economy continues to add jobs, interest rates appear to have peaked and are anticipated to gradually decline for the next two years. Furthermore, a roaring stock market continues to fuel American consumer expenditures resulting in strong demand for travel including lodging.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

December 6, 2023

Notable Resort Developments in Telluride

Over the past decade, Telluride has gained popularity as a secluded resort destination during both the summer and winter months. However, when compared to other mountain resort destinations throughout the region, Telluride has few luxury-resort lodging options.

By Ryan Mark and Katy Black

Telluride, Colorado, United States

Opinion Article

October 30, 2023

Q3 2023 Major U.S. Hotel Sales Survey

Notwithstanding a persistent jittery economic environment and rising global geopolitical concerns, market conditions in the U.S. appear simultaneously shaky and resilient. National lodging sector metrics, particularly average room rates and RevPAR, continue to achieve exceptional results as demand for travel and lodging remains robust. Although overall leisure patronage is trailing off from pandemic highs, due in part to Americans opting for international travel, domestic corporate individual and group meeting business continues to rebound to pre Covid-19 levels. Additionally, inbound international travel to the U.S. continues to recover.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

October 11, 2023

Navigating the hotel transaction market: Not all assets are created equal

While commercial real estate as a whole continues to navigate uncertainty, the hotel property market is experiencing a unique set of challenges and opportunities. Hotel owners and operators currently face a significant divergence in hotel operations performance across different locations and sectors. Meanwhile, potential buyers and sellers are grappling with how to accurately value hotel properties and manage rising debt costs and interest rates, leading to a complex and depressed deal market for hospitality properties.

By Ryan McAndrew, Real Estate Senior Analyst, Senior Manager, RSM US LLP, RSM

United States

Opinion Article

July 20, 2023

Inside the Decline of Hotel Transactions in Q2

Defying the expectations of many, the U.S economy has demonstrated resilience driven in part by a solid employment report with stronger than expected wage growth during June, along with continued healthy levels of consumer spending. With this said, the U.S. economy has been slowed by the Federal Reserve’s aggressive drive to tame inflation through a series of interest rate hikes that began early last year. Although trending downward, with inflation remaining above its two percent target, the Federal Reserve is on track to raise interest rates again this month and mull another hike as soon as September. Despite elevated inflation, which is now easing, and ongoing fears of impending economic recession, unemployment rates remain low, and Americans continue to spend money on goods, services, and experiences.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

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Opinion Article

June 9, 2023

HVS Takeaways from the NYU Hospitality Conference

With contributions from Stephen Rushmore, Roland deMilleret, McKenna Luke, Eric Guerrero, Janet Ott, Patricia Shih, Cole Masler, Raymond Parejo, Caroline Dioso, Robert Fitzpatrick, and Chelsey Leffet

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

United States

Opinion Article

April 24, 2023

Q1 2023 Major U.S. Hotel Sales Survey

With continued elevated levels of inflation and interest rates, and fears of an impending economic recession, the U.S. commercial real estate industry continues to find itself in choppy waters. The recent stunning and swift collapse of Silicon Valley Bank (SVB), and subsequent failures of Signature Bank (SB), and Credit Suisse Group AG (CS) has created a perceived credit crunch now rippling across the global financial system.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

April 5, 2023

H&LA’s Takeaways From the Hunter Hotel Investment Conference

H&LA’s Adam Zarczynski attended the Hunter Hotel Investment Conference in Atlanta in March. Here are some key highlights from the conference.

By Adam Zarczynski, Manager, Hotel & Leisure Advisors (H&LA)

United States

Opinion Article

March 31, 2023

Hunter Hotel Investment Conference: Revenue Strategy Panel Recap

Our team at Cogwheel Marketing attended the 2023 annual Hunter Hotel Investment Conference for a consecutive year and we wanted to be sure to share with our network the 10 Key Takeaways we extracted after packing in 3 days of education, collaboration and relationship building with hotel industry experts.

By Stephanie Sparks Smith, CEO & Digital Matriarch, Cogwheel Marketing, Cogwheel Marketing & Analytics

United States

Opinion Article

March 25, 2023

Hunter Conference Takeaways – A Well-Performing Hotel Industry Lives Through a Tough Financing Environment

Another exceptional Hunter Conference is in the rearview mirror, with much thanks to Lee Hunter and his team, as well as the Atlanta Marriott Marquis, for pulling off a terrific event. Never a dull moment in the hotel industry, which is why many of us never leave the sector, with attendees having such varied opinions on how this year may play out.

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

United States

Opinion Article

March 6, 2023

Key Takeaways from the GF Hotels Forum, Q1 2023

It’s a difficult lending environment across the nation at the moment, but RevPAR is expected to continue to rise in the foreseeable future, particularly supported by ADR growth. Debt, while very expensive, is available, and one lesson learned from the pandemic is the importance of sponsorship, including relationships with the brands.Below is the SWOT analysis for the U.S. hotel real estate and investment industry as outlined at the GF Hotels Forum in Towson, Maryland.

By Jerod Byrd, Senior Vice President, Partner and Director of Operations of the HVS Philadelphia Consulting and Valuation division, HVS

United States

Opinion Article

March 2, 2023

New York City’s 2018 & 2021 Hotel Zoning Amendments

Hotels are a vital part of New York City’s economy, accounting for approximately $13 billion of revenue per year. In recent years, however, the City Planning Commission has adopted certain amendments to New York City’s Zoning Resolution in an attempt to curtail hotel development. These changes have been top-of-mind for owners and developers involved in the New York City hotel real estate market.

By Cole Masler, Senior Manager, New York, HVS

New York, New York, United States

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Opinion Article

February 24, 2023

The Miami Market Rises to the Occasion

Nicknamed “the Magic City,” Miami has maintained its position as a world-class destination despite the national economic challenges experienced since 2020. At the height of the pandemic, Miami’s favorable weather and relaxed restrictions attracted new residents and businesses from all corners of the country and the world. In the post-pandemic era, the greater Miami area remains a top U.S. market. In 2022, hotels in this market realized year-over-year growth in all metrics across each submarket. Furthermore, new hotel supply continues to be added, with numerous recently opened hotels and countless proposed developments.

By Emeldina Paratusic, Project Manager, Miami, HVS

Miami, Florida, United States

Opinion Article

February 3, 2023

U.S. Real Estate Market Outlook 2023

High interest rates and a recession will make 2023 a challenging year for commercial real estate. Though inflation eased in late 2022, it was still running at more than 7%. The Fed will continue raising rates until it sees a marked reduction in inflation nearer to its 2% target. Weakening fundamentals and higher cost of capital will generally lower asset values.

By Richard Barkham, Ph.D., Global Chief Economist, CBRE Hotels

United States

Opinion Article

February 3, 2023

Recent Trends in Washington, D.C.’s Luxury Hotel Market

According to data compiled by STR, in recent years, the luxury segment has fallen 2–5% behind the Washington, D.C. market average in occupancy, while luxury rates have paced roughly $150 to $200 above average. This rate difference is largely due to a few luxury hotels that perform at a higher rate threshold than the remainder of the luxury class, including the Four Seasons, the Waldorf Astoria, both Ritz-Carlton properties, the Hay Adams, and the St. Regis. These higher-rated hotels make up 15% of the total luxury room supply in the District.The 2022 market-wide operating performance for District of Columbia hotels was roughly 62%, at an ADR of just above $240. The 2022 RevPAR falls more than $20 below the 2019 level. The luxury hotel segment, which comprises around 30 hotels, also did not fully rebound to the historical 2019 RevPAR levels in 2022. However, ADR for this segment grew to roughly 115% of the 2019 level.

By Chelsey Leffet and Caroline Dioso

Washington, District of Columbia, United States

Opinion Article

January 13, 2023

Major Hotel Investment Sales in Q4

Heading into a new year, the U.S. commercial real estate industry finds itself in choppy waters amid fears of a recession, rising inflation, and interest rate hikes as market participants await a course correction. Challenges during 2022 including continued supply chain constraints, increasing labor costs and struggles in attracting talent are anticipated to endure through 2023. Combined with international and domestic geopolitical issues and market volatility, many believe during the near term, the U.S will experience a mild to moderate economic recession.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States

Opinion Article

January 11, 2023

The Lost Hotels Of Midtown New York

Luxury hotel demand staged a respectable resurgence last year as the dreadful impact of the pandemic continued to fade. Trailing twelve-month RevPAR for luxury hotels in NYC, as of November 2022, has already surpassed its pre-pandemic benchmark from December 2018. This was a welcome improvement for prominent Midtown hotels that had reopened after many months of closure, including the Mandarin Oriental, Ritz-Carlton, The Plaza, St. Regis, The Peninsula, and the Lotte New York Palace.

By Dexter Wood, Senior Managing Director, The Plasencia Group

New York, New York, United States

Opinion Article

November 4, 2022

A Look at the Major US Hotel Sales in Q3

Economists, politicians, and business leaders are split on whether the U.S. economy is heading for a recession, is already in one, or will merely experience a slowdown. With continued supply chain disruptions, geopolitical conflicts (most notably the war in Ukraine), and the Fed’s determination to continue increasing the federal funds interest rate, there is tremendous uncertainty around inflation and where the economy is heading. Mixed signals abound, however U.S. gross domestic product (GDP) increased for the first time this year in the third quarter, expanding at a higher-than-expected 2.6 percent annually. Unemployment remains low, wage increases are strong and while growth and earnings are slowing, most consumers and corporations are in good financial condition with healthy underlying credit.

By Daniel Lesser, President & CEO, LW Hospitality Advisors LLC (LWHA)

United States