Business travel expectations are normalizing. In line with other travel indicators softening and consistent with prior quarters, eight in 10 business travelers expect to travel to attend conferences, conventions or trade shows in the next six months.
The state of Arizona, including Tucson, recovered quickly from the COVID-19 pandemic. Hotel performance in Tucson has far exceeded pre-pandemic levels, primarily given ADR gains since 2020. In this article, we discuss the current state of Tucson’s hospitality industry, meeting and group demand factors, and investment interest in the market.
The pandemic and hybrid work arrangements have generated strong demand for longer hotel stays, increasing the popularity of cost-effective extended-stay hotels and making them one of the fastest growing segments in hospitality. With higher margins and lower development costs than full-service hotels, extended-stay properties have the potential to generate higher returns on investment. As a result, banks are more likely to provide funding for what are perceived to be lower-volatility, higher-return hotels, particularly those associated with well-established brand families. We expect capital to continue flowing into this segment as long as outsized returns exist.
Below, we take a deep dive into the data and what it means for travel.
Over the past years, hotel companies – including brands, managers and owners – have increasingly sought the benefit of access to public markets and, in doing so, have become subject to the registration and disclosure requirements of the United States Securities Act and Securities Exchange Act. In doing so, these companies need to comply with a broad variety of detailed regulations addressing their disclosure and reporting obligations. The Securities Exchange Commission recently adopted regulations which will have an impact on publicly traded hotel companies that suffer a data breach.
The COVID-19 pandemic had a significant impact on Milwaukee's hotel market, particularly in 2020 when the city experienced a decline in tourism and major event cancellations, coupled with the addition of new supply. However, as the world moves towards recovery, Milwaukee is showing signs of revitalization. With various area development projects, the expansion of the convention center, and the addition of new hotel supply, the city's hotel market is poised for a continued rebound in 2023.
When it comes to showcasing your hotel's unique features and inviting potential guests to experience your property, nothing is more important than your imagery. Investing in high-quality visuals is an investment in your hotel's success for several years to come. However, many hotels make significant mistakes in photo and video production that can hinder their marketing efforts. Let’s explore some common pitfalls and how to avoid them.
Since the COVID-19 pandemic, Philadelphia's ADR has fully recovered, but occupancy and RevPAR remain below 2019 levels. The primary factor limiting the recovery is the stagnant commercial and group demand segments. However, leisure demand has increased, and the city is preparing to host several large events in the coming years, supporting a positive outlook.
Defying the expectations of many, the U.S economy has demonstrated resilience driven in part by a solid employment report with stronger than expected wage growth during June, along with continued healthy levels of consumer spending. With this said, the U.S. economy has been slowed by the Federal Reserve’s aggressive drive to tame inflation through a series of interest rate hikes that began early last year. Although trending downward, with inflation remaining above its two percent target, the Federal Reserve is on track to raise interest rates again this month and mull another hike as soon as September. Despite elevated inflation, which is now easing, and ongoing fears of impending economic recession, unemployment rates remain low, and Americans continue to spend money on goods, services, and experiences.
Over the past several years, H&LA has seen a marked increase in interest from developers and investors in campgrounds and RV resorts. RV parks are rebranding as resorts as they add more amenities. Though camping is far from a new phenomenon, its uptick in popularity during the COVID-19 pandemic helped introduce it to many first-time campers, which boosted participation to higher levels. One of the most popular pastimes in North America, camping has the added benefit for travelers of also being one of the most affordable and accessible vacation options.
While growth in the life sciences, energy, education, and manufacturing industries is contributing to Charlotte’s rise, it’s the financial services/fintech industry that gives the city its power to the throne. Bank of America, Truist Financial, and Wells Fargo all have either a headquarters office or a regional hub in the Queen City.
In Frederik Backman’s New York Times best-selling book, “A Man Called Ove”, the first chapter is aptly titled, “A man called Ove buys a computer that is not a computer.” In those first few pages, readers are introduced to fifty-nine-year-old Ove, a decidedly grumpy and impatient man who ventures into a tech store on a mission to buy a computer. He mistakenly asks the young sales associate for an ‘O-Pad’. The exchange only becomes more strained as Ove repeatedly asks the associate if the tablet is a good computer, and the associate explains that while it’s a good piece of technology, it depends on what type of computer he wants. As you can imagine, Ove’s frustration soon peaks when the associate attempts to explain that a keyboard was sold separately and then tries to direct him to a MacBook (which Ove endearingly calls a ‘McBook’) instead.
Based on our February 2023 Hotel Horizons® report, CBRE is forecasting that total hotel revenue for the average U.S. hotel returned to pre-COVID levels in 2022. This occurred despite the fact that the average occupancy for U.S. hotels is not expected to exceed 2019 levels until 2026.
As of April, the total number of job openings remain elevated at more than 10 million—nearly twice the number of available workers. While the job openings have fallen since their peak at more than 12 million in March 2022, there are still three million more openings than the month before the pandemic began.
If I were asked to compile a list of the most prominent figures currently influencing the trajectory of the independent lodging industry, Andrew Benioff, the Founder and Chairman of the Independent Lodging Congress would undoubtedly be included. As a tenured hospitality professional, I’ve been given the opportunity to connect with countless thought leaders in the space – many of whom exhibit a seemingly unquenchable appetite for innovation and growth – and Benioff is no exception.
The 2023 PGA Championship and the 2024 solar eclipse are just the start of the exciting events and projects in the Rochester area. With the world’s eyes on the city in May 2023 as it hosted golf’s second major championship of the year, this article looks at the PGA Championship’s effects on the Rochester market and what’s to come.
Last week, we welcomed nearly 40 members of the Research Advisory Committee for our annual in-person meeting in Washington, D.C. Through meaningful presentations from industry experts on the evolving drivers of international travel’s recovery and the disruption and opportunities of ChatGPT, the meeting was extremely informative, engaging and thought provoking. The committee had the opportunity to exchange and share ideas with each other through an open forum discussion. Topics discussed included sustaining leisure travel demand beyond the summer, destination management and sustainability initiatives and business travel’s new normal.
With contributions from Stephen Rushmore, Roland deMilleret, McKenna Luke, Eric Guerrero, Janet Ott, Patricia Shih, Cole Masler, Raymond Parejo, Caroline Dioso, Robert Fitzpatrick, and Chelsey Leffet
This summer, air travel demand is expected to be the strongest since pre-pandemic—and potentially the strongest ever. Over a quarter of Americans plan to increase the amount they are spending on leisure travel in the next three months (26%) up from 19% in Q1.
According to CBRE’s February 2023 Investment Performance forecast, total revenues for the average U.S. hotel returned to 2019 levels in 2022, but the recovery of hotel profits will be delayed until later this year. Hotel franchise and management companies have benefited the most from the ongoing revenue recovery because the fees they receive are frequently earned as a percent of revenue. However, for many hotel owners, along with their lenders and investors, the lag in the return of profits has been a hardship. Afterall, it is the profits of hotel operations that enable owners to pay their debt obligations and provide returns to their investors.