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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 Thomas Hazinski and Joseph Hansel

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 Suzanne Mellen and Neil J. Flavin

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

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.

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Why Hospitality Net Leads B2B in Hospitality

Learn what makes us the industry-leader in what we do.

Hospitality Net

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.

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.

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.

April 8, 2020

Magnuson Advises Hotel Owners; Cut Costs To Survive Storm

In a video presentation released today, Magnuson Hotels CEO Thomas Magnuson advised hotel owners to weather the current economic downturn by quickly cutting costs.

Magnuson Hotels

World Panel Revenue Optimization

A Post-Crisis Top-3 Revenue Management Action Plan

Expert Views (14)

April 7, 2020

Max Starkov, Hospitality & travel technologist and digital strategist, Hospitality Net

Here are the three main action steps in revenue management in the post-crisis period: 1. Break down the silos! The post-crisis requires a completely new approach to revenue management (RM), not going back to the old ways of doing RM.

Harald Bindeus, Commercial Leader | Marketing, Revenue Management, Sales |, Global Hotel Revenue Solutions

While none of us have any idea when the virus outbreak will be contained and when currently closed hotels will be allowed to open again, we can and should get ready for the day which will eventually come. At the same time, we can't plan too early without proper data and information.Action A: Resist the temptation to hand over your inventory, promotions and rate strategy to the OTAs.

Damiano Zennaro, Director, Global Advisory Services, IDeaS

It's true that the hotel industry has been through many storms. However, it has never seen a black swan event like this one. As the leading brands expect revenues to decline by an unprecedented 70% or more, millions of people are out of work and we are still 3-6 weeks away from the peak of the crisis.

View all Answers

External Article

April 3, 2020

U.S. Travel Industry Warns Of $910 B Coronavirus Losses: Seven Times 9/11

The losses to the U.S. tourism industry due to the coronavirus are snowballing-make that avalanching-by the day. To the point that the national non-profit organization representing all travel sectors estimates the economic fallout for the country will be seven times worse than 9/11.

External Article

March 27, 2020

Hotel Deals and Lending Zapped by Coronavirus at the Finish Line

Heading into 2020, the hotel sector was expected to slow down, but deals were still getting financed. Then came coronavirus.

March 26, 2020

Summit Hotel Properties Provides Update on Action Plan to Mitigate Effects of COVID-19

Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it has taken significant steps to enhance its overall liquidity position in light of the operating and financial effects on the Company due to the COVID-19 (Coronavirus) pandemic.

Summit Hotel Properties, Inc.

External Article

March 23, 2020

U.S. Jobless Claims Could Top Record 1.5 Million Next Week: Economists

A wave of layoffs at restaurants, bars and hotels, as efforts to contain the coronavirus pandemic bring much of everyday American life to a halt, could drive new applications for U.S. unemployment benefits to a record 1.5 million or more next week, economists warned on Thursday.

Opinion Article

March 21, 2020

HVS Brokerage Insight: Outlook for Transactions in the Wake of COVID-19

As of February 2020, the market remained strong, with low-interest rates continuing to attract investors despite some softening in the outlook for the industry. It's a whole different world just a few weeks later. The coronavirus (COVID-19) has directly impacted the hotel industry through the expeditious cancellations or postponements of large events and business travel across the country.

By Dustin Robinett and Kelson Reimer

Opinion Article

March 20, 2020

The Importance of Financial Relief for the Hotel Industry

The coronavirus (COVID-19) pandemic is having a profound impact on the hospitality industry, as travel restrictions, limits on large gatherings, the closure of restaurants and bars and, perhaps most influential, fear of the virus, have brought travel—and most other aspects of hospitality—to a virtual halt. According to Chip Rogers, president and CEO of the American Hotel and Lodging Association (AHLA), "The impact to our industry is already more severe than anything we've seen before, including September 11th and the Great Recession of 2008 combined."

By Anne Lloyd-Jones, MAI, CRE, Director of Consulting & Valuation Services, National Practice Leader, at HVS New York, HVS

External Article

March 20, 2020

Hotel Industry Faces Huge Crisis in Coming Months, Discusses Recovery Solutions

The COVID-19 health crisis is unprecedented in its size and scope, and represents the single largest decline in travel in modern times. And its effects on the hotel industry are already staggering.