Markets & Performance USA & Canada Opinion Articles - Hospitality Net

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Opinion Article

May 10, 2023

Travel Trends and Supply Changes for the Hawaii Lodging Market

Hawaii enacted some of the strictest travel measures in the United States in response to the COVID-19 pandemic. A mandatory two-week quarantine was enforced in March 2020 for all travelers arriving to the Hawaiian Islands; this quarantine applied not only to out-of-state visitors, but also to local interisland travel. As a result, a majority of hotels and resorts suspended operations. In October 2020, a Safe Travels program was introduced, easing the quarantine for inbound travelers contingent upon a negative COVID-19 test result within three days prior to arrival. This policy, in addition to the outdoor living and lifestyle of the islands, contributed to Hawaii being perceived as a safe haven from the pandemic.

By John Berean, Managing Director, HVS

Hawaii, United States

Opinion Article

May 9, 2023

U.S. Major Market RevPAR Rebounds in 2023

For the first time since the onset of the COVID pandemic, CBRE is forecasting the 2023 aggregate revenue per available room (RevPAR) for the nation’s 65 major markets to return to 2019 levels. In 2022, RevPAR recovered nationally but continued to lag in the major markets. According to the February 2023 edition of Hotel Horizons®, 88% of the 65 Horizons® markets are expected to have reached or surpassed their 2019 RevPAR levels by year-end 2023. This compares favorably to 2022 when just 58 of the Horizons® markets saw RevPAR return to 2019 performance levels. The eight markets lagging in recovery are in northern California, the upper-Midwest, and along the northeast corridor from Washington, D.C. through New York.1

By Lindsay Dyer, Senior Research Analyst, CBRE Hotels

Opinion Article

May 8, 2023

International travel’s gradual return in an increasingly competitive global market

We are well into 2023, and the U.S. finally officially announced this week that it will be ending the COVID-19 vaccine requirements for international air travelers on May 11, the same day that the COVID-19 public health emergency ends. This announcement is especially symbolic as the U.S. was the last major market to have such a restriction in place

By Aaron Szyf, Economist, U.S. Travel Association

Opinion Article

May 5, 2023

Kansas City’s Flourishing Demand Generators Bolster Hotel Interest

The Kansas City hotel market has rebounded following the impacts of the COVID-19 pandemic, and high levels of leisure demand and the return of convention activity have driven the recovery. Despite rising construction costs, a number of hotel developments are proposed in Kansas City, signaling an optimistic outlook for the market.

By Daniel McCoy and Benjamin Giebler

Kansas City, Missouri, United States

Opinion Article

May 4, 2023

Dallas Hotel Development: A Success Story Amid the Pandemic Recovery

Within the hotel and lodging sector, Dallas’s popularity with visitors and its ability to attract new businesses have contributed to an unhesitating redemption. In the wake of the COVID-19 pandemic, revenue per available room (RevPAR) in the greater Downtown Dallas area for 2022 rebounded to levels similar to 2019; however, the year-to-date period ending February 2023 shows RevPAR exceeding prior peak levels, as illustrated in the Kalibri Labs data below.

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

Dallas, Texas, United States

Opinion Article

May 3, 2023

Incentive Management Fees Return with Recovery

Most management contracts include an incentive management fee in addition to the base management fee. The incentive fees are designed to make management more conscious of the bottom line since owners achieve their returns and pay their debts from profits, not revenue. Incentive management fees are earned by the operator once a designated profit threshold is achieved.

By Robert Mandelbaum and Tim Dick

Opinion Article

May 1, 2023

The Travel Industry’s Vital Role in Bolstering Our Economy

The industry’s outsized role in bolstering the U.S. economy is clear. Direct travel spending totaled $1.2 trillion in 2022, which produced an economic footprint of $2.6 trillion—a return to 2019 levels. Travel directly employed 8 million Americans and supported nearly 15 million jobs.

By Aaron Szyf, Economist, U.S. Travel Association

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Opinion Article

April 28, 2023

Boise's Rise: Small Big City in the Convention Landscape

In 2022, Boise's convention industry flourished thanks to expanded Boise Airport routes. Despite lacking a large convention hotel, Boise hotels enjoyed a remarkable rise in RevPAR in 2022, with Downtown hotels surpassing pre-pandemic levels. Furthermore, Micron Technology's expansion and the city's growth in tech and commercial development bode well for Boise's economic future.

By Eileen Bosworth and Lauren Reynolds

Boise, Idaho, United States

Opinion Article

April 20, 2023

Portsmouth, NH Shakes off Pandemic-Era Rust & Shows Promise for Future

Situated midway between Boston and Portland, picturesque Portsmouth features a waterfront downtown with a growing hotel market. This article serves as a primer on the market’s history, recent performance, and outlook.

By Erich Baum, Senior Vice President, HVS

Portsmouth, New Hampshire, United States

Opinion Article

April 18, 2023

U.S. Waterparks Poised for More Growth Amid Robust Recovery

In 2022, waterpark owners and operators breathed a sigh of relief as the industry shifted back to normal in the wake of two years of uncertainty. With the pandemic a rearview concern in 2022, most waterparks continued their recovery to see attendance improve. This robust performance paved the way for new growth in all segments of the industry. Several large-scale projects planned for 2023 and beyond will alter the waterpark landscape at both indoor and outdoor waterparks. These projects will continue to encourage existing properties to innovate and update to keep market share.

By David Sangree, MAI, CPA, ISHC, is President of Hotel & Leisure Advisors, Hotel & Leisure Advisors (H&LA)

Opinion Article

April 13, 2023

Nashville Q2 2023 Lodging Update

This article provides a brief update on the state of Nashville’s lodging market as of April 2023.

By Marc Greeley, Director, HVS Nashville, HVS

Nashville, Tennessee, United States

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Opinion Article

April 12, 2023

Destination Los Angeles: A Look at the Future of the Hotel Market

Los Angeles, the entertainment capital of the world, boasts a thriving tourism industry that draws millions of visitors every year. In this article, we will pinpoint the trends, innovations, upcoming events, and challenges that are shaping the future of the Los Angeles hotel industry.

By Kirsten Smiley and Aidan Martin

Los Angeles, California, United States

Opinion Article

April 4, 2023

Recent Lodging Trends and Outlook for Chicago, Illinois

Despite the COVID-19 pandemic, readers of Condé Nast Traveler magazine have voted Chicago as the best big city in the U.S. for the last six years. Chicago’s numerous attractions include unique dining experiences, modern hotels, diverse neighborhoods, and an abundance of arts and entertainment venues. The market also benefits from its proximity to other major markets and its popularity as a meeting and group destination.Data for the Downtown Chicago market is outlined below, illustrating a strongly rebounding economy as of year-end 2022.

By Amy Schmidt and Brian Arevalo

Chicago, Illinois, United States

Opinion Article

March 31, 2023

Norfolk-Virginia Beach MSA: A Full Recovery

The Norfolk-Virginia Beach MSA comprises several cities aside from Norfolk and Virginia Beach, including Chesapeake, Suffolk, Newport News, Hampton, Portsmouth, and Williamsburg. The region’s economy revolves around the federal government, the military, the aerospace industry, and the transportation, construction, and healthcare sectors.

By Chelsey Leffet, Managing Director, Northeast Leader, HVS

Norfolk, Virginia, United States

Opinion Article

March 29, 2023

Spokane County: A Growing Sports and Event Destination

Spokane County’s current and under-construction offerings of sporting and event facilities continue to increase visibility for the market regionally and nationally. This article outlines the recent and upcoming changes to the county’s event facilities.

By Claude Xue, Associate, HVS Portland, HVS

Spokane County, Washington, United States

Opinion Article

March 25, 2023

Short-Term Rentals and Lodging News in Lake Tahoe

Lake Tahoe’s economy is anchored by the tourism industry, which experienced significant growth post-COVID given its proximity to major cities such as Sacramento, San Francisco, and Reno, as well as the array of outdoor activities. The Lake Tahoe Basin is home to a growing population of year-round residents, and the popularity of second homes and investment properties in the area has resulted in soaring home prices and an affordable housing crisis. To preserve the area's natural beauty, local governments and the Tahoe Regional Planning Agency have implemented strict development and short-term rental restrictions. Despite these restrictions, new lodging developments and redevelopments are underway, which are expected to reshape the mix of lodging supply going forward, particularly in the luxury segment.

By Katy Black, Senior Vice President at HVS Denver, HVS

Tahou, California, United States

Opinion Article

March 22, 2023

2023 Hotel Performance Outlook for Denver

With occupancy nearing the 70% mark and ADR levels approximately 4% above 2019 levels, the Denver lodging market achieved a RevPAR level in 2022 that was approximately $5 below 2019 levels. In line with the top 25 major metropolitan areas in the U.S., ADR has led the way in the recovery, with occupancy remaining below prior peaks.

By Katy Black, Senior Vice President at HVS Denver, HVS

Denver, Colorado, United States

Opinion Article

March 22, 2023

Spring Break Travel: Expectations and Pain Points

The demand for travel during the American spring break timeframe is substantial—and demand remains strong despite higher prices. Let’s break down the expectations, pain points and opportunities for the industry.

By Jamie Mageau, Director of Research Products, U.S. Travel Association

Opinion Article

March 17, 2023

HVS Las Vegas Casino and Hotel Market Outlook 2023

Las Vegas’s 38.8 million total visitors in 2022 was roughly 91.3% of 2019 levels and only 4.1 million below the peak number of visitors in 2016. Gaming revenue for Clark County in 2022 was $12.8 billion, a new record for the market. Statistics from the Las Vegas Convention and Visitors Authority reflect 43.6 million total occupied room nights for Las Vegas in 2022, 20.6% more than in 2021. Occupied room nights, as well as total occupancy (79.2%), continued to lag 2019 performance, but the market’s ADR ($170.98) and RevPAR ($135.42) reached record levels in 2022. This article examines the latest trends and developments relevant to the Las Vegas hospitality market.

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

Las Vegas, Nevada, United States

Opinion Article

March 15, 2023

The St. Louis Lodging Market’s Enduring Recovery

Similar to the rest of the nation, hotel metrics in St. Louis plummeted in 2020 at the onset of the COVID-19 pandemic, but the market had entered a healthy recovery phase by the spring of 2021. Growth accelerated through the remainder of the year, fueled by a surge of leisure travel and the slow reemergence of commercial demand, as well as the return of conventions and major events.

By Daniel McCoy and Benjamin Giebler

St. Louis, Missouri, United States