If there’s one word that defines the current U.S. hotel landscape, it’s uncertainty. As we move into 2025, hoteliers across the country are facing a slew of critical questions: How resilient is demand? Are rising costs here to stay? And most importantly—how can we maintain profitability in a market that feels, well, unpredictable?
The two key differentiating factors between economy and midscale extended-stay hotels are the quality of the finishes and the price point. Economy extended-stay hotels typically offer a more budget-friendly option for guests, focusing on basic, functional accommodations with limited extra features.
The hospitality industry in Georgia and the Southeast is at a crossroads. As the region prepares for major events—including Atlanta’s MLB All-Star Game (2025) and FIFA World Cup (2026)—hotels are gearing up for increased demand. However, operators face a major challenge: rising labor costs, stagnant employment recovery, and declining Net Operating Income (NOI).
It was wonderful to see everyone at ALIS in Los Angeles. The conference went off without a hitch, meeting rooms were full, and although the outlook for fundamental performance remained muted, investor sentiment was strong, echoing what we saw in our recently released second annual U.S. Hotels Investor Intentions survey.
The hotel investment industry gathered in L.A. once again for the ALIS Conference last week. It was a fantastic opportunity to reconnect with colleagues, compare notes, and share predictions of what the future may bring.
Offering differentiated hotel pricing based on the geographic location of guests brings us to a timeless question: Can business practices be both profitable and ethical, or is that just a comforting fairy tale for capitalists with a conscience?
This is not the first attempt for an ill-conceived differentiated pricing by the OTAs. 15 years ago Orbitz was caught jacking up prices for Apple computer and laptop users under the presumption that Apple users were more affluent than PC users.
This research is indeed intriguing. As a product manager for Lighthouse's parity management solution, I've seen firsthand how hotels use extranet promotions to offer location-specific and platform-specific discounts. However, this study reveals a fundamentally different scenario.
Why not? There are many across industry examples where location and socio-demographics impact pricing for products and services. A few brief examples - Fuel - Drive around your own town and you will find vast differences. Not to mention long weekends.
As we all continue to find our footing in today’s market, we remain encouraged by the level of interest we have seen from offshore capital looking to invest in U.S. hotel assets, with the driving factors being their search for yield, stability, and growth.
In my view, last-minute discounting is a super lazy and rookie approach to revenue management and a sure downward spiral to hotel insolvency. One question: why airlines and car rental companies never engage in last-minute discounting?
No actions that drive business to OTAs away from direct channels are good for hotels. It's a simple concept. OTAs have been very creative in finding ways to train the consumer to choose their booking channels over hotels' own websites and this is just another attempt to do the same.
Last-minute discounting is a double-edged sword for hoteliers. It can help fill unsold inventory, but it also carries significant risks that can undermine a hotel's broader revenue strategy and brand perception. From a revenue perspective, unsold rooms are a perishable asset, and this type of policy can be useful to sell those rooms.
Major cities in the Southeast like Charleston, Atlanta, Savannah, and Raleigh-Durham remain strong hotel investment markets due to their thriving tourism, growing business hubs, and strategic locations. Enhanced financing options are expected to boost transaction volumes. Significant construction pipelines and improving economic conditions highlight the region's long-term resilience and investment appeal.
The Fed recently gave us a surprise similar to the one my grandfather used to give my father. My father recently recounted to my son how his grandfather would give him a quarter and a Dr. Pepper each time he saw him. Occasionally, he would surprise him with a half dollar instead, and my father would be thrilled.
In just one year, CBRE's Global Hotel Asset Management practice has grown to oversee 40+ properties with 8,500+ rooms worldwide. Our success stems from leveraging CBRE's vast resources and our team's global expertise to deliver unmatched results.
Sonesta, the 8th largest hotel company in the US, today announced a new incentive program that provides a 2% incentive to franchisees who utilize Sonesta’s procurement program for purchasing needs. This initiative offers significant financial benefits to owners and underscores Sonesta's commitment to transparency, innovation, and strong franchise relationships.
Each year, HVS researches and compiles development costs from our database of actual hotel construction budgets. This source provides the basis for our illustrated total development costs per room and per product type.
OTAs typically have the better booking experience, greater reach thanks to infinitely higher marketing spend, and if they also have the better price thanks to member rates, mobile exclusive discounts, package rates, etc., why would anyone still book direct?
I believe rate parity is essential for transparency and trust with our guests. It ensures consistent rates across all third-party channels, avoiding confusion and maintaining our brand's reputation. While we have the flexibility to offer special rates on our own website (a channel we fully own), rate parity helps us manage distribution more effectively with OTAs and other third parties we don't fully control (which we don't own).
I believe that hotels should have the freedom to set different rates across their distribution channels, including OTAs, without being bound by rate parity agreements. Firstly, allowing hotels to set their own rates enables them to respond more dynamically to market conditions and tailor pricing strategies to different customer segments.
Rate parity is non-sense and the RTI ( Retun time invested.) is always negative. here is why: 1. Hotels cannot answer how much additional business they got because of disparity - so easy to throw rocks as to how much money "might have been lost" vs 2.
Fort Lauderdale, a staple South Florida beach destination, is shifting its focus beyond leisure tourism with a $1.3-billion investment in the Broward County Convention Center and adjoining Omni Hotel. Following this project, Fort Lauderdale will position itself as both a vacation destination and a commercial city.
The South’s award-winning collection of hotels and clubs has found new ownership in James and Jessica Whitley of Athens, Georgia. On Friday, June 14, 2024, the sale of Old Edwards Hospitality Group’s assets was completed between long-time owners Art and Angela Williams and the Whitleys.
I don't think this is a good move from Booking.com as indeed advance purchase rates (with no refunds or cancellations) have been a useful tool to attract budget-conscious guests and ensure steady cash flow for hotels. Nowadays, guests are even more price sensitive so by removing completely prepaid rates at a discount, we (they) may lose some customers directly.
In some ways it appers much like the old model of travel agent relationships and vouchers, where the hotel received the funds from the agent after the guest had stayed and submitted their voucher for payment through the accounts receivable process.
Hotel advanced booking/pre-paid rates are typically 10%-20% below BAR (Best Available Rate). These rates have always been an important strategy to put as much business on the books and to decrease cancellation rates plaguing the industry for years, reaching as high as 50% in some destinations.
CapitaLand Ascott Trust (CLAS) has acquired the remaining 10% stake in Standard at Columbia, a freehold student accommodation property in South Carolina, United States of America (USA). The earnings before interest, taxes, depreciation and amortisation (EBITDA) yield on total development cost is expected to be approximately 7%. This is higher than the 6.2% EBITDA yield that was projected in 2021 on the basis that the property has achieved stable performance. The acquisition is funded by proceeds from CLAS’ earlier divestments.