Markets & Performance USA & Canada Opinion Articles

August 21, 2019

The Boston Lodging Market: What the Supply Surge Means Moving Forward

At year-end 2018, the Boston and Cambridge lodging market was comprised of 105 hotels with approximately 24,000 rooms. While this has grown considerably in four years, lodging supply in this market remains small relative to other major gateway cities. The ongoing building boom in Boston and Cambridge has contributed greatly to the recent surge in lodging supply and is expected to continue through 2021 and beyond.

By Sebastian Colella, Vice President, Pinnacle Advisory Group

Boston, Massachusetts, United States

Opinion Article

July 24, 2019

Las Vegas Casino & Hotel Market Outlook 2019

Las Vegas is both iconic and unique, providing over 147,000 guestrooms; numerous casinos; a wide range of food, beverage, and entertainment options; shopping venues; and meeting and convention space. Overall, Las Vegas is expected to continue generating demand from local, national, and international sources at various price points. New, large-scale developments in the professional sports and entertainment fields could prove major draws as they come to fruition. Such efforts are necessary for Las Vegas to maintain its competitive status.

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

Las Vegas, Nevada, United States

Opinion Article

July 19, 2019

Tap Our Research

HVS Brokers Survey, HVS Hotel Valuation Index (HVI), HVS Development Cost Survey, HVS Franchise Fee Guide, HVS Lodging Tax Report, HVS Quarterly Industry Statistics Update, HVS Spa Performance Report.

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

United States

Opinion Article

July 15, 2019

Information & Telecommunication Spending Trends in the US

In mid-June, HFTP hosted the 47th annual Hospitality Industry Technology Exposition and Conference, better known as HITEC. The event occurred in Minneapolis, Minnesota and welcomed more than 6,000 attendees, making it one of the largest hospitality technology conferences in the world. What brought these people together? A common interest in hospitality technology.

By Tanya Venegas, Director of Customer Success, HotStats

United States

Opinion Article

June 28, 2019

HVS Market Pulse: Toledo, Ohio

Much like other markets in the "rust belt" Midwest, Toledo is experiencing a period of redevelopment, with major projects occurring in the healthcare, public, education, tourism, and, yes, hospitality sectors. Eight new hotels have opened since 2014 (including the fully renovated Renaissance), accounting for a 24% increase in overall supply in Lucas County during a five-year period. For several years, the growth areas in Toledo were clustered in the suburban markets of Holland and Maumee, as the city's major employers moved to the south suburbs, leaving major vacancies Downtown. Further south, Perrysburg, in Wood County, has also realized substantial hotel growth.

By Stacey Nadolny, HVS Managing Director and Senior Partner, HVS

Toledo, Ohio, United States

Opinion Article

June 26, 2019

HVS Market Pulse: Perspectives on the New York City Lodging Market 2019

Supply growth has been the dominant headline for the New York City lodging market over the past decade. The number of hotel rooms in the city increased from 66,000 in 2007 to 99,000 in 2018, a 50% increase in inventory. Another 15,000 rooms are under construction or proposed; if all of these rooms are built, the city's inventory will have increased by 75% in a 16-year period. Increases in demand kept pace with supply growth through 2018. However, in the first quarter of 2019, supply outpaced demand for the first time in the current cycle. While there are a number of factors that influenced these results, it is clear that the supply side of the equation is putting increasing pressure on the lodging market. This is evident in recent average rate trends, which illustrate sluggish ADR growth since 2010, including three years of actual declines.

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

New York, New York, United States

Opinion Article

June 19, 2019

2019 Canadian Hotel Lending Survey

Supported by the persistence of generally favourable economic conditions, the Canadian lodging market sustained a marked improvement in 2018, as evidenced by a record-breaking RevPAR performance. Interest in hotel development has been steadily increasing in recent years. While demand has remained strong for core markets with high barriers to entry, such as Vancouver, Toronto, and Montreal, lenders continue to look for opportunities in select secondary and tertiary markets with promising outlooks. Supported by the strong performance fundamentals, the financing environment in the hotel sector is currently favourable. As a result, many financial institutions that were not active in the hotel sector in the past are now looking for opportunities to enter the sector, especially in markets with high demand.

By Carrie Russell and Shu Lin (Sharon) Liu

Canada

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Why Hospitality Net Leads B2B in Hospitality

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Hospitality Net

Opinion Article

June 18, 2019

Poor Performers

According to the March 2019 edition of CBRE's Hotel Horizons® forecast report, the 2019 average annual occupancy level for U.S. hotels is projected to be 66.2 percent. This will mark the sixth consecutive year of occupancy levels above the 62.5 percent long-run average, and fifth year above the pre-2014 historical high of 64.8 percent.

By Robert Mandelbaum, Director of Research Information Services, CBRE Hotels

United States

Opinion Article

June 7, 2019

NYU Conference Takeaways: Cautious Optimism Turns to Caution | Rodney Clough

The 41st NYU International Hospitality Industry Investment Conference wrapped up on June 4, 2019, and the overall sentiment of the event was one of caution, a shift from a sentiment of cautious optimism at conferences earlier in the year. Most expect the next industry downturn to come soon, perhaps as soon as next year or early 2021. Absent a Black Swan event, the expectation is for a correction rather than a deep downturn. Main takeaways include the following:

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

New York, New York, United States

Opinion Article

May 27, 2019

HVS Market Pulse: Downtown Omaha, NE

A major revitalization period commenced in Omaha’s Downtown Central Business District approximately 15–20 years ago when several high-profile projects were completed. Between 2002 and 2005, development projects included the construction of the First National Bank Tower (both the city’s and the state’s tallest building), the CHI Health Center, the Gallup Riverfront Campus, the Union Pacific Center, and the Holland Performing Arts Center.

By Sara E. Olson, Director, Omaha, HVS

Omaha, Nebraska, United States

Opinion Article

May 24, 2019

HVS Market Pulse: Fresno, CA

As the most populated city in the in the Central Valley, Fresno benefits from a diversified economic base, driven by the agriculture, manufacturing and distribution, and retail industries, as well as the healthcare and education sectors. Agriculture contributes over $3.5 billion annually to the local economy alone. With strong market fundamentals, this article highlights some key factors that influence the Fresno lodging market.

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

Fresno, California, United States

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Opinion Article

May 23, 2019

HVS Market Pulse: State of Hawaii

Hawaii experienced another stellar year of RevPAR performance in 2018, bolstered by improved airlift and a strong domestic economy, which resulted in another record year of visitor arrivals. Despite these impressive achievements, the year was not without its share of difficulties, including volcanic eruptions at Kīlauea, disruptions caused by Hurricane Lane and Hurricane Olivia, and an extended 51-day hotel worker strike. Nevertheless, the Hawaii Department of Business, Economic Development & Tourism (DBEDT) forecasts sustained year-over-year growth in visitor arrivals through 2022, which should support a robust hotel market.

By John Berean, Managing Director, HVS

Hawaii, United States

Opinion Article

May 22, 2019

HVS Market Pulse: Houston, Texas

All things considered, the Houston economy weathered the worst energy depression since the 1980s relatively well, highlighting the depth and diversity of Houston's economic base today. Job growth in other sectors, such as healthcare, professional services, and construction, helped offset the approximately 25% loss in energy-related jobs. While the oil-and-gas industry is no longer the sole pillar of the local economy, it remains, nonetheless, and integral component. Hiring activity tied to oilfield services and the manufacturing industry has picked up in response to rising oil prices and increased activity in the Permian Basin; however, the jobs related to the exploration and extraction sector (the upstream-related jobs that support areas like the Energy Corridor) have been slow to return.

By J. Carter Allen, Managing Director, HVS

Houston, Texas, United States

Opinion Article

May 21, 2019

HVS Market Pulse: Spokane, Washington An Emerging Meeting-and-Group Destination

The Spokane Convention Center is located on the south bank of the Spokane River in Downtown Spokane. The campus consists of the nearly 500,000-square-foot Spokane Convention Center building and the INB Performing Arts Center. The convention center is owned and operated by the Spokane Public Facilities District (SPFD). In June 2006, the convention center was first expanded by the 100,000-square-foot Group Health Exhibit facility just in time for the 2007 U.S. Figure Skating Championships; this expansion was followed by a renovation of the original facility in 2007. As the convention center continued to outgrow its current space, a $55-million expansion added 92,000 square feet to the building in January 2015. The 2015 expansion occurred concurrently with the development and construction of The Davenport Grand Hotel, which opened in the summer of 2015; it is connected to the convention center via a sky bridge.

By Breanna Smith and Eileen Bosworth

Spokane, Washington, United States

Opinion Article

May 16, 2019

HVS Market Pulse: Asheville, North Carolina

In 2017, Asheville attracted roughly ten million visitors who spent nearly $2 billion at local businesses, with approximately 40% of travelers requiring overnight accommodations. The city has always been a popular regional destination given its outdoor activities, temperate climate, arts culture, and kitschy downtown. In recent years, it has become better known for its foodie culture, thriving music scene, and offering of microbreweries, with about 50 small and large brewing operations throughout the city. With the city landing on the list of top destinations in numerous publications in recent years, it has become more of a destination for travelers from across the country.

By Janet Snyder, Senior Vice President and Director at HVS Asheville, HVS

Asheville, North Carolina, United States

Opinion Article

May 9, 2019

The 2019 LIIC Top Ten — Hotel Real Estate: Mostly Sunny Days Clouded by Labor Issues

Yesterday, we kicked off Meet the Money® 2019 – the National Hotel Finance & Investment Conference hosted by JMBM’s Global Hospitality Group® – with the LIIC Top Ten. Presented by my friend, Mike Cahill, CEO and Founder of HREC and one of LIIC’s co-chairmen, the LIIC Top Ten reflects the perspectives of the industry’s most active members in the hospitality market.

By Jim Butler, Partner & Co-Chair Hospitality Practice, Blank Rome LLP, Blank Rome

United States

Opinion Article

April 26, 2019

HVS Market Pulse: Arlington, Texas

Arlington's Entertainment District neighborhood is deep rooted within the sports and entertainment industries. Six Flags Over Texas opened in 1961, followed by Six Flags Hurricane Harbor (opened as Wet 'n Wild) in 1983. Seven Seas Marine Life Park operated in the early 1970s on what is now the site of the Sheraton hotel, with some original structures incorporated into the hotel's physical plant. In 1994, the $191-million Globe Life Park in Arlington replaced Arlington Stadium, which had served as the home for the MLB Texas Rangers from 1972 to 1993. The 2009 opening of the $1.3-billion AT&T Stadium, formerly Cowboys Stadium and home to NFL Dallas Cowboys, once again transformed the Entertainment District. Aside from sporting events, the AT&T Stadium is a large producer of room nights for hotels via concerts and other special events. Additionally, in 2010, the International Bowling Museum & Hall of Fame opened in Arlington.

By Kathleen Donahue, Senior Managing Director and Practice Leader, HVS

Arlington, Texas, United States

Opinion Article

April 25, 2019

Q1 2019 U.S. Lodging Market Update

While the longer economic growth endures, intuitively the risk of recession rises. Despite GDP indicative of a slowing economy during Q4 2019, the U.S. economic expansion which commenced in June 2009, is soon approaching the longest post-World War II expansion with uninterrupted growth. Investors frequently ponder where we are in a cycle. Is the current economic climate most like 1995, 1999, 2000, 2003, 2008 or 2016? While history often rhymes, the reality is we are in 2019, which presents its own set of idiosyncratic risks and opportunities. Many economists have opined that expansions do not die of old age, rather they expire due to an unpredictable event(s) such as shocks to oil prices and/or the bursting of asset bubble(s).

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

United States

Opinion Article

April 25, 2019

HVS Market Pulse: Anaheim, California

Since 1955, Anaheim’s economy has been driven by The Walt Disney Company, which is also the largest private-sector employer in Orange County with nearly 32,000 employees. Its local operations include Disneyland and the California Adventure theme parks, three Disneyland hotels, and Downtown Disney (a shopping and entertainment area). The area’s lodging market is also supported by the Anaheim Convention Center, which currently provides the largest convention facilities on the West Coast.

By Jessica White, Consulting & Valuation Analyst, HVS

Anaheim, California, United States

Opinion Article

April 24, 2019

HVS Market Pulse: Destination Downtown St. Louis

The St. Louis Cardinals remain the market's number one tourism attraction, and a $260-million expansion of the stadium-adjacent entertainment complex, Ballpark Village, is underway. The city's other top attraction, the Gateway Arch, just completed a $380-million revamp in 2018. By late 2019, the $187-million transformation of the former Union-Station shopping mall into the St. Louis Aquarium is expected to be complete, adding a new major attraction to the market. These exciting developments are complemented by a host of other attractions in the City of St. Louis, including a casino, two arenas, and numerous museums and theaters. Looking forward, a group of private civic boosters is in hot pursuit of a Major League Soccer (MLS) franchise for the city, including plans for a new, $250-million soccer stadium.

By Daniel McCoy, Managing Director, HVS

St. Louis, Missouri, United States