Markets & Performance USA & Canada Reports - Hospitality Net

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January 25, 2018

Impact of Countervailing Forces on Hotel Values and Cap Rates

After more than five years of relative stability, new factors are at play in the hotel investment market that will affect hotel capitalization rates and values in a changing economic landscape. Hotel sales transaction activity declined in 2017, while cap rates continued to rise modestly, and hotel values held stable. The outlook for 2018, while uncertain because of the changing political and economic landscape, is more positive than a year ago due to the tax reform's favorable treatment of commercial real estate and a more optimistic business environment. This article presents recent trends and a sensitivity analysis illustrating the potential impact of these forces.

By Suzanne Mellen, Senior Managing Director - Practice Leader, San Francisco, HVS

January 3, 2018

Market Pulse: Seattle, WA

My, oh, my! The famous catchphrase coined by Seattle Mariners' longtime sportscaster, Dave Niehaus, is ever so fitting as we look at how Seattle has changed over the last ten years. Seattle enjoys a diverse economy rooted in manufacturing, biotechnology, high technology, telecommunications, health care, and tourism. Metro Seattle, especially Downtown Seattle and Bellevue, is experiencing a period of exponential growth anchored by tech giants, such as Amazon, Microsoft, Google, and Expedia. The area is also home to several Fortune 500 companies, such as Boeing, Costco, PACCAR, Weyerhaeuser, Starbucks, and Nordstrom. Moreover, other key employers in the area, such as the University of Washington, Bill & Melinda Gates Foundation, and Fred Hutchinson Cancer Research Center, strongly influence the local and regional economies. Today, Seattle is among the fastest-growing cities in the U.S., and the commercial developments in the area have fueled unprecedented hotel demand growth, spurring new hotel construction throughout the market.

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

Seattle, Washington, United States

January 2, 2018

Market Pulse: Fort Worth, TX

Anchoring the west end of the Dallas/Fort Worth Metroplex, Fort Worth features the old and the new. Also known as "Cowtown," the cattle industry initially spurred economic development in the city. Today, glass and steel skyscrapers share the sidewalks of Downtown with renovated historic districts, such as the Fort Worth Stockyards National Historic District and Sundance Square.

By Hunter Dietz and Kathleen Donahue

Fort Worth, Texas, United States

December 19, 2017

HVS Market Pulse: Center City Philadelphia

Philadelphia lays claim to many firsts in the U.S., including the first state capital, public library, hospital, stock exchange, and even the nation's first zoo. Today, revitalization efforts continue to fuel the city's engine of innovation, building on a base of airport, tourism, education, and convention demand drivers. Strong group demand in recent years, combined with rising levels of transient corporate and leisure travel, has boosted occupancy and average daily rate (ADR), especially within Philadelphia's Center City submarket.

By Scott Killheffer and Kim Lindell

Philadelphia, Pennsylvania, United States

December 19, 2017

Market Pulse: Anaheim/Garden Grove | By Li Chen

The market is experiencing a period of economic strength and expansion, primarily led by the tourism and leisure industry and the presence of Disneyland and the Anaheim Convention Center, which continue to attract visitors and bolster lodging demand.

By Li Chen, Vice President, HVS

Anaheim, California, United States

December 19, 2017

Market Pulse: Detroit, MI

The Detroit metropolitan area has experienced significant economic growth in recent years, fueled by a strengthening auto industry as well as the continued diversification of the local employment landscape. The hotel sector is benefitting from existing employers expanding operations locally and new entrants to the market. The Big Three automakers continue to invest in the region, while companies like e-commerce giant Amazon.com Inc. are building large warehouse facilities. Revenue gains for hotels were accordingly robust during the 2010–2016 period. Revenue per available room (RevPAR) during that stretch grew nearly 71 percent, rising from a low of roughly $38 in 2009 at the depths of the Great Recession to over $64 by year-end 2016. Both the average daily rate (ADR) and occupancy have posted consistent gains since 2010. Moreover, hoteliers sold a record number of room nights in the city of Detroit in 2016, according to STR. Occupancy levels approached 70 percent by the end of 2016, with ADRs of nearly $150 in the central business district (CBD). The data for 2017 show a relatively stable occupancy level with robust gains in ADR. The record performance achieved in this expansionary period has spurred tremendous hotel development in the downtown core and suburbs.

By Brandon Leversee, Vice President with HVS Detroit, HVS

Detroit, Michigan, United States

December 7, 2017

HVS Market Pulse: Lubbock, Texas

Lubbock (aka "Hub City"), Texas, connects business, educational, and healthcare enterprises spread across the region known as the South Plains. This region encompasses the largest contiguous cotton-growing operations in the U.S., and agriculture, manufacturing, and technology are pillars of the local and regional economies. Economic growth in Lubbock has boomed over the past several years, and through a varied cross-section of industries, the city's Downtown is poised for a major revitalization.

By Hunter Dietz, Project Manager at HVS Dallas, HVS

Lubbock, Texas, United States

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December 6, 2017

Market Pulse: Tampa, FL

Tampa's warm weather and relatively inexpensive cost of living are just a couple of the reasons people and companies are relocating to the Tampa Bay area from far and wide. Continued investment by both the public and private sectors is anticipated to set the stage for continued growth. These factors, among others, are driving hotel demand and room-night production, which is leading to an increase in new hotel developments.

By Mallory Hall, Project Manager at HVS Atlanta, HVS

Tampa, Florida, United States

November 29, 2017

HVS Market Pulse: Galveston, Texas

A weak energy sector has led to negative lodging fundamentals throughout much of the greater Houston region; however, one destination continues to illustrate its resilience. Galveston Island has realized year-over-year growth in total visitation in each of the past seven years following Hurricane Ike. While the rate of growth has slowed in recent years, no doubt somewhat affected by volatility in the energy sector, positive factors such as the recently completed expansion of the cruise terminal and the low gasoline prices have contributed to the growth in visitation numbers. This article will explore tourism trends on Galveston Island. Galveston Island is a 64-square-mile barrier island located 50 miles southeast of Houston. With 32 miles of beaches, a variety of historic neighborhoods, ample leisure attractions, and a multitude of festivals, the tourism industry remains a mainstay of the local economy. The relative affordability of the island, and the proximity to and size of the Houston metropolitan area contribute to the strength of this industry.

By J. Carter Allen, Managing Director, HVS

Galveston, Texas, United States

November 23, 2017

Market Pulse: Hotel Demand Takes Flight at LAX

The LAX/El Segundo area has experienced robust growth in hotel demand in recent years, buoyed by increased passenger volume at LAX, the addition of new upper-upscale hotels, and sustained corporate demand from El Segundo and the surrounding markets. LAX is the second-busiest airport in the nation, behind Atlanta's Hartsfield International Airport, and the gateway to Southern California. The airport reached a new peak in passenger volume in 2016, which grew 7.0% over the prior year, and this trend continued through the September 2017 year-to-date period. The addition of Delta's direct flights from China on Boeing's Dreamliner and recent renovations at LAX have contributed to this growth.

By Jessica White, Consulting & Valuation Analyst, HVS

Los Angeles, California, United States

November 21, 2017

North American Hoteliers End 2017 Strong with Healthy Gains Across All Travel Segments

As North American hoteliers enter the holiday season and round out the year, all travel segments are seeing a noticeable increase across the board in both average daily rates (ADR) and occupancy, up 1.4 percent and 3.9 percent respectively, during the fourth quarter of 2017, according to new data from TravelClick's November 2017 North American Hospitality Review (NAHR).

TravelClick, Inc.

November 9, 2017

HVS Market Pulse: Indianapolis, IN

Indiana's capital city, Indianapolis, is the state's largest and the third-largest city in the Midwest. The city is a primary industrial, commercial, and transportation center for the Midwest, as the most centrally located of the largest 100 cities in the United States. The city is well served by four interstates, six railroads, an international airport, and a foreign trade zone. Historically known for its concentration of major manufacturing operations and logistics, the city has evolved as a hub for advanced manufacturing, digital technology, and life science/healthcare, as well as amateur and professional sporting events, which have brought Indianapolis broader recognition. The area is most well known for hosting the Grand Prix of Indianapolis and Indianapolis 500 each spring.

By Justin Kaminski and Jai Patel

Indianapolis, Indiana, United States

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October 5, 2017

What 2017 Fall Trends Tell US Hoteliers About Traveler Behavior

Before leaf-changing season kicks into full swing, check out our fall travel trends that reveal interesting insights into traveler search behavior. Our data* tells us where travelers to the US are coming from and what cities they're going to and compares their search behavior with those traveling domestically.

By Lenka Trckova, Industry Manager, trivago

September 27, 2017

The Impact of the September 2017 Hurricanes on the Islands of the Caribbean

When Ebola struck the Sub-Saharan continent in the summer of 2014, thousands of travelers canceled their safari plans in South Africa, resulting in an immediate decline of multimillions of dollars given the tourist cancelations. Truth be told, South African cities such as Johannesburg and Cape Town were more than 2,000 miles from the epicenter of the outbreak, unlike the wildly successful summer destinations of the South of France and England, which were actually far closer to the sources of the viral outbreak. Unfortunately, the geographically challenged visitors, who could have seamlessly enjoyed their intended holidays, altered their plans, and the destinations that relied heavily on the bookings and inbound travel suffered economically, and greatly.

By Leora Halpern Lanz and Kristina M. D'Amico

September 19, 2017

2017 HVS Lodging Tax Report - USA

In this sixth annual Lodging Tax Study, HVS Convention, Sports, and Entertainment Consulting surveys lodging tax rates and revenues across the United States. Our study includes a broad range of cities and tracks policy trends in lodging tax impositions. This research identifies the lodging tax rates levied at the state, county, city, and special district levels. We provide data on the collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest cities in the United States.

By Thomas Hazinski and Alex Moon

September 19, 2017

HVS Market Pulse: Charlotte, NC

Charlotte, North Carolina, is one of the biggest cities in the southeast, second only to Jacksonville, Florida, by population, and among the top three fastest-growing metro areas in the U.S. Home to two professional sports franchises (the NBA's Charlotte Hornets and the NFL's Carolina Panthers), NASCAR's Sprint Cup and All-Star stock car races, and numerous museums, Charlotte enjoys a strong base of leisure demand. Commercial and meeting/group demand are strong in the city, as well.

By Patricia Shih, Director, HVS

Charlotte, North Carolina, United States

September 1, 2017

U.S. Hotel Demand Hits an All-Time High

Hotel demand has just reached an all-time high in the U.S., according to CBRE Hotels' Americas Research. Occupancy levels and demand for rooms are also buoyant in Europe and Asia Pacific.

By Richard Barkham, Ph.D., Global Chief Economist, CBRE Hotels

September 1, 2017

Hurricane Harvey will send ripples through U.S. hotel industry, expert says - usatoday.com

Hurricane Harvey put a big asterisk beside a U.S. lodging market forecast at the Southern Lodging Summit in Memphis on Wednesday. Hotel industry expert Jan Freitag, senior vice president, strategic development for STR, formerly Smith Travel Research, fears Harvey could wipe out a year’s worth of gains in hotel room growth.

Texas, United States

August 17, 2017

HVS Market Pulse: Boise, Idaho

Boise is closing in on the ranks of the top ten cities in which to live in the U.S., according to the 2017 survey by U.S. News & World Report. The reasons for the elevated ranking—number 12, as of this year—include affordability, job prospects, and overall quality of life. This reflects Boise's ascendance in other spheres, including population, visitation numbers, and the number of proposed hotels, especially in the city's downtown corridor.

By Breanna Smith, Senior Vice President, Portland, HVS

Boise, Idaho, United States

July 21, 2017

Summer Continues with Inconsistent Rates and Bookings for North American Hoteliers

As North American hoteliers push forward into the third quarter of 2017, both average daily rates (ADR) and bookings remain inconsistent across all travel segments, according to new data from TravelClick's July 2017 North American Hospitality Review (NAHR). This marks an ongoing trend for the year.

TravelClick, Inc.