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November 2, 2020

HFTP 2020–2021 Global Executive Committee and Board of Directors Begin Term

The 2020-2021 Global Executive Committee and Board of Directors for Hospitality Financial and Technology Professionals (HFTP®) have officially begun their term at the start of this month. The association leaders represent a wide variety of segments within the hospitality industry, including: clubs, academics, hotels, finance, technology and more. The HFTP Global Board volunteers its time and professional expertise to help guide and progress the association to the forefront of the industry as it carries out its strategic plan.

October 30, 2020

What Prop 15 means to California Hotel Owners

On election day this year, voters in California will be choosing between maintaining the existing Prop 13 which has been in place for 42 years (since 1978) and Prop 15, the first meaningful adjustment to tax laws with regard to assessing real estate in California for property tax purposes.

October 28, 2020

Industry Veteran, Bill Navas, Launches New Hotel CapEx Advisory Firm

Bill Navas, a 30-year hotel industry veteran has launched Rich-Port Hospitality Development, an innovative advisory firm primarily focused on executing capital projects for clients. Rich-Port also assists institutional investors with pre-acquisition due-diligence and provides hotel companies with outsourced brand representation and technical services.

Rich-Port Hospitality LLC

Opinion Article

October 23, 2020

2020 HVS Lodging Tax Report - USA

While prior HVS annual lodging tax studies have looked back on tax rates and revenues across the United States, this ninth annual Lodging Tax Study also looks forward and assesses the impact of the COVID-19 pandemic. This analysis of 25 major US markets illustrates the depth of the impact on the hospitality industry and projects a pattern of recovery over the next few years. HVS also provides historical data on tax rates and the collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest US cities.

By Joseph Hansel and Thomas Hazinski

Opinion Article

October 15, 2020

U.S. Hotel Development Cost Survey 2020

In 2019, the national lodging market reached new heights, with hotels reporting the highest occupancy and ADR levels ever recorded. Similarly, hotel development continued at a steady pace, with new hotels opening to a burgeoning market and new and exciting projects continuously being moved through the development pipeline. Since the start of the COVID-19 pandemic, government restrictions, travel and group cancellations, and an overall fear of traveling have caused an unprecedented drop in travel and tourism demand in the country and around the world, which has resulted in substantially lower occupancies and average rates.

By Luigi Major, Managing Director, Advisory of HVS Americas, HVS

Opinion Article

September 22, 2020

Benchmarking 101: The Bottom Line on Utility Costs

In the age of COVID, numerous operating costs have decreased, as hoteliers have done all they can to reduce expenses to help offset the extreme reduction in revenue.

By David Eisen, Content Director, Media, Questex

September 3, 2020

United States Looks Set To Lose $155 Billion From Missing International Tourists And Visitors, Says WTTC

A devastating $155 billion looks set to be lost from the U.S. economy due to the collapse of international travel during 2020, according to latest research conducted by the World Travel & Tourism Council (WTTC).

The next-gen metrics that move hotel P&L

Hotel tech has changed what's possible – and measurable. RevPAR and ADR aren't enough; discover the metrics that really matter.

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Hospitality Net

Opinion Article

July 20, 2020

COVID-19’s Potential Lasting Impact on Fixed vs Variable Hotel Expense Ratios

As a result of COVID-19, hotel operators have been forced to make tough decisions, including the most basic one on whether to keep the lights on. Many were required to close their doors after municipal mandates were put in place and some decided to remain open, despite record-low occupancy levels, to house pandemic-related first responders and other essential personnel related to the fallout from the spread of coronavirus, largely in place of more traditional sources of demand during "normal times".

By Vanessa Gonzalez, Andrew Hartley, Kannan Sankaran, and Mark VanStekelenburg

July 1, 2020

Hotel Industry Facing Massive Foreclosures of Thousands of Hotel Properties

AMERICAN HOTEL AND LODGING ASSOCIATION PRESIDENT AND CEO CHIP ROGERS: - "With a sharp decline in travel demand, nine times worse than September 11 and with lower room occupancy than during the Great Depression, our small business owners are struggling to survive. The human toll on our industry has been equally as devastating. Right now, many hotels are struggling to service their debt and keep their lights on, especially those with Commercial Mortgage-Backed Securities (CMBS) loans as they have been unable to obtain urgently-needed debt relief. Without action to shore up commercial debt, especially CMBS loans, the hotel industry will experience mass foreclosures and permanent job losses which will snowball into a larger commercial real estate crisis impacting other segments of the economy."

June 30, 2020

Eldorado Resorts Announces FTC Clearance for Pending Merger With Caesars

Eldorado Resorts, Inc. (NASDAQ: ERI) ("Eldorado," "Eldorado Resorts" or the "Company") announced today that the Federal Trade Commission (the "FTC") has accepted a proposed consent order, which concludes the FTC's Hart-Scott-Rodino review of Eldorado's pending merger (the "Merger") with Caesars Entertainment Corporation (NASDAQ: CZR) ("Caesars"). The FTC's acceptance of the consent order satisfies all required antitrust clearances for the Merger.

Eldorado Resorts Inc.

Opinion Article

June 5, 2020

The Case for Targeted Federal Aid to DMOs and Tourism Agencies

The COVID-19 pandemic has placed at risk the substantial investment of state and local governments in the tourism and hospitality industries. Publicly funded destination marketing organizations ("DMOs"), tourism agencies, and convention centers face budget shortfalls, staffing reductions, and growing financial uncertainty. Targeted federal aid is urgently needed to support DMOs, tourism agencies, and convention centers whose work is critical to the recovery of vital sectors of the US economy.

By Joseph Hansel and Thomas Hazinski

Opinion Article

May 12, 2020

HVS: Temporarily Closed Hotels Due to COVID-19: When to Reopen?

With the advent of the COVID-19 pandemic in the U.S. in early to mid-March 2020, hotel owners and managers watched demand for their rooms suddenly evaporate. Since then, tough decisions have been made regarding whether to remain open or temporarily suspend operations. Hotels that have temporarily suspended operations now need to decide when to reopen. This article addresses the considerations to be weighed in this process and provides one example of the calculus for a hypothetical hotel.

By Neil J. Flavin and Suzanne Mellen

Opinion Article

April 30, 2020

HVS CPACE Strategy for Avoiding Loan Loss Reserves and Preserving Equity Capital

A recently published article by several of my colleagues at HVS forecasts the expected pattern of decline, and the subsequent recovery, in the market value of hotels in the United States under "best case," "most likely case," and "worst case" scenarios. And while they further acknowledge a variety of factors that will also influence the ultimate value impact realized by a hotel under each of these scenarios, the decline in asset value under the "most likely" scenario is expected to average 26% in 2020, with 2019 market values not being fully recovered until 2023, at which time they are anticipated to surpass 100% of the 2019 market value.

By Kathy Conroy, MAI, Senior Managing Director of HVS Miami and Practice Leader of Shared Ownership Consulting, HVS

April 28, 2020

Report: Hotels Require More PPP Loan Funding To Save Jobs

The American Hotel & Lodging Association (AHLA) released a new report today showing the average small business hotel will require additional funding from SBA loans under the Paycheck Protection Program (PPP) in order to rehire employees or prevent further layoffs and keep their business open. AHLA also sent an urgent letter today to Congress asking for additional funding for SBA loan program and several technical updates to the CARES Act to help these hoteliers keep their doors open and save jobs.

Opinion Article

April 20, 2020

HVS Hotel Transaction Activity: The Factors Influencing a Return to Normalcy in a Post-COVID-19 Time

As a result of the current COVID-19 pandemic, the HVS Team has received many questions about when U.S. hotel transaction volume will return to reasonable, pre-pandemic levels. While we do not have a definite answer, as these circumstances are evolving daily, we have tried to use past events to provide some insight on the factors that would affect a possible rebound. We see the anticipated volume declining because of COVID-19.

By Drew Noecker, Managing Director and Co-Head of the HVS Brokerage & Advisory Divsion, HVS

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Hospitality Net

External Article

April 16, 2020

Can they be saved? Travel industry winners and losers of federal bailout

When it comes to the economic toll from the coronavirus, few sectors have taken a bigger hit than travel.

Opinion Article

April 16, 2020

Compensation Impact on Taking Money from the Government (CARES Act HEC)

To receive financial assistance (in the case of air carriers and contractors), or loans and loan guarantees (in the case of other eligible businesses), a company must agree to the following limits (which generally apply during the period of assistance and for one year thereafter) on annual compensation and severance payments for each officer and other employee (other than a unionized employee) whose "total compensation" exceeded $425,000 in 2019 ("CARES Act HCEs"):

By Keith Kefgen, Managing Director & CEO, AETHOS Consulting Group

April 9, 2020

MGM Resorts' Entertainment Partners Unite In Unprecedented Support For Company's Employees During COVID-19 Crisis

MGM Resorts International (NYSE: MGM) today recognized the support of many of its resident entertainment partners who generously donated to the company's Employee Emergency Grant Fund in support of those impacted economically by the coronavirus (COVID-19) pandemic.

MGM Resorts International

Opinion Article

April 9, 2020

Hotel Investing in the Uncertain Pandemic Climate

As we commence a new quarter in 2020, facing heavy headwinds in the face of the new decade, it is more important than ever to develop a plan to work through this pandemic. There is still so much uncertainty, yet it is our responsibility as business professionals to develop a plan to prepare ourselves for the worst-case scenario.

By Ahmed Kabani, Vice President Investments - Senior Director, Marcus & Millichap

External Article

April 8, 2020

Hotel Industry Says It Will Struggle To Get By Even With Government Help

Less than a month ago, Mitch Patel's hotel business was booming. His company, Vision Hospitality Group, owns 37 hotels in six states and it had seen record business in January and February, according to Patel. Things were going so well, he was planning to open two more hotels this year, and seven next year.