Markets & Performance USA & Canada Opinion Articles - Hospitality Net

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Opinion Article

March 8, 2021

HVS Market Pulse – Milwaukee, Wisconsin

Prior to the COVID-19 pandemic, Downtown Milwaukee was experiencing revitalization and growth over a period of nearly ten years. The year 2020 was expected to be one of Milwaukee's record years, with the Democratic National Convention scheduled for July. Given the reduction in attendance of this major one-time event and other citywide events that were forced to reschedule, RevPAR declined by 66%. Data provided by STR and Visit Milwaukee indicate that occupancy in Downtown Milwaukee dropped from 71.4% in 2019 to 32.5% in 2020. Meanwhile, average daily rate (ADR) declined from $144.10 in 2019 to $106.57 in 2020, reflecting a drop of roughly 26%. While these metrics are shocking, Milwaukee is poised to make a recovery that should be driven by area development projects, strong demand generators, and the highly anticipated expansion of the convention center.

By Justin Westad and Amy Schmidt

Milwaukee, Wisconsin, United States

Opinion Article

March 5, 2021

HVS Market Pulse: Indianapolis, Indiana

Downtown Indianapolis experienced record visitation in 2019, led by the city's impressive calendar of national conventions and major sporting events. The award-winning Indianapolis Convention Center (ICC), which features 749,000 square feet of exhibit space and twelve connected hotels, hosts several national conventions, expositions, and events every year. Lucas Oil Stadium (LOS), located adjacent to the ICC, is a 67,000-seat, multi-purpose, retractable-roof stadium that is home to the NFL's Indianapolis Colts.

By Kristen Gatti, Senior Project Manager, Chicago, HVS

Indianapolis, Indiana, United States

Opinion Article

March 4, 2021

Anchorage Lodging Market: Winter 2021 Update

Amid a worldwide pandemic, the Anchorage lodging industry continues to experience a downturn that is greater than the past two lodging-market declines combined. The major factors that have affected this market since the onset of the pandemic in March 2020 are highlighted below.

By Breanna Smith and Kasia Russell

Anchorage, Alaska, United States

Opinion Article

February 26, 2021

HVS Las Vegas Casino & Hotel Market Outlook 2021

The impact of the COVID-19 pandemic on the Las Vegas economy has been extremely harsh given the market's reliance on visitation and conventions. Following five consecutive years of accommodating more than 42 million visitors, Las Vegas hosted just over 19 million people in 2020 (the lowest number of visitors since 18.1 million in 1989). While vaccination rollouts have begun in Nevada, measures to curb the spread of the COVID-19 virus remain in place. Continued weak performance is anticipated through the first half of 2021. Thereafter, the recovery of travel and general economic performance is expected to accelerate as vaccines, medical therapies, and public confidence support the beginning of the return to pre-pandemic levels. Fortunately, construction is classified as an essential business in Nevada and has continued throughout the pandemic. New developments will contribute to the eventual recovery of the market.

By Shannon Okada, Managing Director of Gaming with HVS, HVS

Las Vegas, Nevada, United States

Opinion Article

February 19, 2021

HVS Market Pulse - Minneapolis-St. Paul

Prior to the COVID-19 pandemic, the greater Minneapolis-St. Paul region experienced significant increases in new supply and high levels of demand attributed to major one-time events such as Super Bowl LII in 2018 and the NCAA Men's Final Four Basketball Tournament in 2019.

By Justin Westad and Tanya Pierson

Minneapolis-St. Paul, Minnesota, United States

Opinion Article

February 12, 2021

HVS Market Pulse: The Florida Keys Lodging Market

Notable market downturns that have negatively impacted the Florida Keys lodging market include the Great Recession in 2009, the Zika virus in 2016, Hurricane Irma in 2017, and the ongoing global pandemic. Nonetheless, hotel and resort properties in the Florida Keys have positive attributes that allow owners and operators to continue to perform well even during the hardships of economic crises. The heavy leisure-dependent market, without reliance on commercial and meeting/group demand, allows local hoteliers to overcome multiple challenges other national markets cannot offer or accommodate.

By Chris Cabrera, Project Manager with HVS Miami, HVS

Florida, United States

Opinion Article

February 9, 2021

COVID-19’s Impact on the Philadelphia Lodging Market

Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, Philadelphia's occupancy fell three points from approximately 65% in 2008 to 62% in 2009; in 2020, occupancy dropped from the 2019 benchmark of roughly 70% to 44%, reflecting a 26-point correction. Average daily rate (ADR) declined from $123 in 2008 to $111 in 2009, a 10% drop; in 2020, ADR fell 28% from what was registered in 2019 ($136 to $99).

By Kim Conlon, Vice President, Philadelphia, HVS

Philadelphia, Pennsylvania, United States

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Opinion Article

February 4, 2021

HVS Market Pulse: Napa Valley

Replete with world-renowned vineyards, wineries, and culinary experiences, Napa Valley has a stellar reputation as a top destination market both domestically and abroad. However, numerous wildfires and the COVID-19 pandemic have affected the market. While the long-term effects of the wildfires have yet to be determined, the local economy remained relatively strong, and the impact on regional visitation from the San Francisco Bay Area and on hotel performance as a whole was relatively minimal, at least until the onset of the COVID-19 pandemic in 2020.

By Bomie Kim and Noella Moon

Napa Valley, California, United States

Opinion Article

February 3, 2021

HVS Market Pulse: Buffalo, New York

Like so many markets throughout the United States, the decade of growth following the Great Recession benefited the Buffalo metropolitan market. Developers started to take notice of the strength of this market, and new supply began to increase. While hotels were being built throughout the country, the increase in supply within this market was notable, especially in the upscale and upper-upscale segments. Since 2014, supply has increased more than 45%, with the following hotels having entered the relatively small Downtown submarket:

By Christian Cross, Vice President, HVS Buffalo, HVS

Buffalo, New York, United States

Opinion Article

February 2, 2021

COVID-19’s Impact on the Phoenix Lodging Market

During the Great Recession, Metro Phoenix's[1] occupancy fell nearly 16 points from its pre-recession peak of 68.2% in 2006 to 52.4% in 2009. However, occupancy fell from the 2019 peak of 70.5% to 47.0%[2] in 2020, reflecting roughly a 24-point correction. Although average daily rate (ADR) declined 19% from a pre-recession peak of $124.80 in 2008 to a low of $100.94 in 2010, ADR only fell 14% in 2020, from $132.64 in 2019 to $114.44 in 2020.

By Michael Smithson and McKenna Luke

Phoenix, Arizona, United States

Opinion Article

January 28, 2021

COVID-19’s Impact on the Greater Gatlinburg, Tennessee Lodging Market

The COVID-19 pandemic impacted Americans and the rest of the world in a multitude of ways. None was more readily apparent though than the steep reduction in face-to-face interactions - whether through traveling or in the workplace. As many companies transitioned employees to a work-from-home setting, some permanently, many people's daily social interactions dropped precipitously.

By Marc Greeley, Director, HVS Nashville, HVS

Gatlinburg, Tennessee, United States

Opinion Article

January 26, 2021

COVID-19’s Impact on the St. Louis Lodging Market

Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, Greater St. Louis[1] occupancy fell roughly four points from 59% in 2008 to 55% in 2009. In 2020, occupancy fell from the 2019 benchmark of roughly 65% to 38%, reflecting a 27-point correction. Average daily rate (ADR) declined from $87 in 2008 to $82 in 2009, a 6% drop. In 2020, ADR decreased 21% from the rate achieved in 2019 ($107 to $85).

By Daniel McCoy and Zabada Abouelhana

St. Louis, Mississippi, United States

Opinion Article

January 22, 2021

A Glimmer of Hope Amidst a Hemorrhage

Prices of hotels along the east coast continue to drop, although the rate of decline has moderated. Hotels on the west coast enjoyed positive price momentum, both on a quarter-over-quarter or year-over-year basis. Hotels in gateway cities exhibited poorer price performance than those in non-gateway cities. Our moving average trendlines and standardized unexpected price performance metrics indicate a positive price reversal for large hotels, while the hemorrhaging continues for small hotels. There are indications that lenders are more willing to finance hotels going beyond best-in-class hotel properties, although the cost of financing and the relative risk premium remain high. This is report number 37 of the index series.

By Crocker Liu, Adam D. Nowak, and Robert M. White

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Opinion Article

January 18, 2021

COVID-19’s Impact on the Anaheim-Santa Ana Lodging Market

Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, the Anaheim-Santa Ana[1] market's occupancy fell roughly five points from 69% in 2008 to 64% in 2009. In 2020, occupancy dropped from the 2019 benchmark of roughly 78% to 43%, reflecting a 35-point correction. Average daily rate (ADR) declined from $123 in 2008 to $109 in 2009, an 11% drop. In 2020, ADR decreased approximately 19% from the rate achieved in 2019 ($166 to $134).

By Michael Evans, Senior Project Manager, Los Angeles, HVS

Anaheim-Santa Ana, California, United States

Opinion Article

January 15, 2021

HVS Market Pulse: Panama City Beach, Florida

Once an old-school beach destination peppered with mom & pop motels, softened zoning restrictions welcomed high-rise condominium towers in the early 2000s, transforming the area into a collegiate Spring Break haven. The mid-2010s hailed the entrance of a new marketing strategy and the area's first nationally branded hotels, in addition to legislation prohibiting alcohol consumption on the beaches, once more evolving the market identity to one of a family-friendly destination. It was also during these years that the market bore witness to the housing bubble burst and economic downturn of the Great Recession, the Deepwater Horizon Oil Spill, and Hurricane Michael, followed by the COVID-19 pandemic in 2020; nevertheless, it persisted.

By Hannah McManus, Project Manager, Tampa, HVS

Panama City Beach, Florida, United States

Opinion Article

January 14, 2021

Impact of COVID-19 on the Coachella Valley Lodging Market & Outlook

Before the pandemic, the Coachella Valley typically welcomed over 14 million visitors annually. The tourism industry generated more than $7 billion in economic impact and supported 53,000 jobs in 2019. With major events canceled and many hotels closed for half of the year, Visit Palm Spring estimated a roughly $3.1 billion economic loss in 2020, inclusive of 25,000 jobs lost in the retail and services sectors.

By Kirsten Smiley, Senior Vice President, Southern California Region Director, HVS Los Angeles, HVS

Coachella Valley, California, United States

Opinion Article

December 18, 2020

HVS Market Pulse: Wyoming & Montana

Travel certainly looked different in the United States for 2020. The limitation of international travel, the postponement of events and festivals, remote working, virtual learning, and the closure or strict capacity limitations at several attractions have steered travelers to seek the great outdoors, particularly in more remote locations. Thus, the scene in the late summer and early fall was far from desolate in the three major national parks in Wyoming and Montana; in fact, Yellowstone, Glacier, and Grand Teton National Parks experienced an increasing number of visitors through the end of the summer, with record visitation for all three parks in October.

By Katy Black and Lauren Reynolds

Opinion Article

December 15, 2020

2020 Canadian Hotel Lending Survey – COVID-19 Edition

The COVID-19 pandemic has transformed the climate for hotel lending in Canada. At the start of the year, the hotel sector was preparing for a down cycle in 2020 because the market had been riding high for the past 11 years, since the end of the Great Recession in 2009. Nevertheless, cautious optimism was the general sentiment heading into the New Year—the national lodging market remained healthy, and RevPAR levels were at a record high at the beginning of 2020.

By Carrie Russell and Shu Lin (Sharon) Liu

Opinion Article

November 19, 2020

Third-Quarter Brand Performance Update: Summer Helps Industry Gain from Q2 Shutdown Lows

Third-quarter results for public company brands showed marked improvement from the lows of the second quarter, which included widespread lockdowns, strict gathering restrictions, and extreme curtailing of corporate travel. Moreover, during this early-in-the-crisis period, the public at large was generally more willing to reduce or eliminate any travel plans and stay at home. As the summer took hold, COVID-fatigue began to sink in, and more and more travelers emerged from their homes to book vacation travel.

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

Opinion Article

November 18, 2020

Lodging Recovery in Boston & Cambridge Driven by Leisure Demand as Market Faces Increases to Supply

As the United States faces a growing number of COVID-19 cases, surpassing 10 million in early November, lodging markets across the country continue to face unprecedented declines in demand. Through October, the Boston & Cambridge lodging market has experienced some of the steepest declines in demand and revenue across the country's top-25 markets according to STR. Now operating in the winter season, historically the slowest demand period for the Boston & Cambridge market, increasing case numbers have resulted in further restrictions to travel, gatherings, and businesses which were eased over the summer months. The pandemic's impact to demand continues to reshape the room supply in the Boston & Cambridge market and while there have been improvements to demand levels since the spring, the road to recovery will be long.

By Sebastian Colella, Vice President, Pinnacle Advisory Group

Boston & Cambridge, Massachusetts, United States