Converging Factors: Is a Soft Landing Possible?
As we enter the final quarter of the year, is this recession still happening? And what does this mean for travel?
By Aaron Szyf, Economist, U.S. Travel Association
Opinion Articles
Albany's Hotel Industry: A Bright Outlook
Albany's hotel industry continues to rebound from the pandemic. This article reviews the performance and recent trends of two distinct Albany submarkets and the market’s extended-stay hotel segment. Through this review, we provide a comprehensive overview of Albany’s performance coming out of the pandemic.
By Robert Fitzpatrick, Assistant Vice President, at HVS New York, HVS
2023 HVS Lodging Tax Report - USA
Since room sales generate lodging tax revenues, an overview of hotel market trends provides a perspective on the industry's current and future fiscal impacts. While the negative impacts of the COVID-19 pandemic were unprecedented, as documented in our 2022 HVS Lodging Tax Study, nearly all lodging markets have reached or exceeded pre-COVID levels of revenue generation. Revenue per available room (“RevPAR”), the product of average daily room rate and occupancy rate, is a standard industry metric that combines the effects of occupancy and average daily room rate changes on hotel revenue performance. The figure below compares the amounts of RevPAR in the 25 US urban markets for each month from January 2019 through July 2023.
By Thomas Hazinski and Michael Ferguson
Bringing New Energy to The Meadowlands in Northern New Jersey
The Meadowlands development in northern New Jersey features the Meadowlands Sports Complex, with the MetLife Stadium as a centerpiece, and hosts numerous major companies. This development is anticipated to strengthen its presence going forward with the addition of a convention center.
By Patricia Shih, Director, HVS
The Taylor Swift Impact – 5 Months and $5+ Billion
You’ve likely heard that Taylor Swift recently completed the U.S.-based first leg of her Eras Tour, but have you heard about the impact that tour had on local communities and economies across the United States? We lay it out below.
By Aaron Szyf, Economist, U.S. Travel Association
Phoenix, AZ: A Decade of Investor Confidence Pays Off
Phoenix has exploded in growth over the last decade, developing a diverse and welcoming economy that has allowed the city and surrounding communities to outperform other top-25 markets.
HVS Outlook Fall 2023: Discovering a New Normal
A strong RevPAR rebound in the first quarter of 2023 was stalled by increasing costs of capital, inflationary pressures, outflow of domestic demand with limited international infill, and economic concerns. How can hoteliers expect 2023 to end and the next few years to trend? This article presents our latest forecast and insights.
By Anne Lloyd-Jones and McKenna Luke
Richmond, Virginia’s RevPAR Rebound and Diverse Lodging Demand
In the past three years, the city of Richmond has seen significant growth in RevPAR, outpacing the regional area and the state of Virginia in the post-pandemic recovery period. This article provides an overview of Richmond’s hotel performance and demand sources.
By Chelsey Leffet, Managing Director, Northeast Leader, HVS
Conroe, Texas: North Houston’s Emerging “Leading Lady”
Conroe provides small-town living while located only 40 miles north of Houston, the fourth-largest city in the country. This quaint city is currently having a resurgence and is considered one of the fastest-growing cities in Texas. Conroe has a reported population of 103,035 as of August 31, 2023, a 36% increase from 2013, and it is only projected to grow. The town has ample land for new development, and the recent improvements are heavily influenced by the city development model of The Woodlands just ten miles south.With this location near The Woodlands and so much available land, Conroe is starting to experience spillover from that city and become popular as a "bedroom community," resulting in additional residential development. One such project in the city is the highly anticipated Grand Central Park, a 2,046-acre residential community development along Interstate 45 and South Loop 336, just five miles north of The Woodlands.
By Kira Black, Project Manager, Houston, HVS
The Rebounding San Diego Lodging Market Attracts Investor Interest
In 2022 and the first half of 2023, San Diego hotels experienced unprecedented RevPAR growth, similar to much of California, as markets recovered from the impact of the COVID-19 pandemic. As a result, hotel development and transactions have been strong. However, construction of full-service hotels remains challenging amid a steep rise in development costs.
By Marcus Lee, Executive Vice President, Development, HVS
“Volleyball Day in Nebraska” Sets World Attendance Record and Boosts Hotel Demand
Approximately 92,000 Nebraska volleyball fans packed Memorial Stadium on August 30, 2023, to watch the Nebraska Huskers sweep Omaha in an outdoor match, setting a new women’s sporting event attendance record. Local hotels benefited from the midweek event, as most available guestrooms in the market were filled.
By Sara E. Olson, Director, Omaha, HVS
Inbound Travel’s Slow Recovery is Hurting U.S. Retailers
International visitors to the U.S. love to shop and spend money at stores across the country. In fact, according to NTTO’s Survey of International Travelers (SIAT), more than 80% of overseas travelers reported that they engaged in shopping, more than any other activity. The U.S. was—and remains—the “single most popular destination for shopaholics” according to a recent WTTC report. In an age when online shopping has replaced many in-person purchases at diverse U.S. businesses throughout the country, the full return—and continued growth—of inbound travel is critical for numerous U.S. retailers.
By Aaron Szyf, Economist, U.S. Travel Association
Mississippi Gulf Coast: A Record Recovery
The COVID-19 pandemic initially posed a major threat to the leisure-heavy Gulf Coast tourism industry, as the market only benefited from one month of Spring Break travel before the stay-at-home orders were issued. However, the state of Mississippi relaxed its COVID-19 restrictions sooner than competitive markets in nearby states, thereby allowing the state’s Secret Coast resorts to capture large amounts of pent-up leisure demand. As a result, occupancy and ADR for July and August nearly reached pre-pandemic levels.
By Lauren Hock, Senior Vice President and Leader of HVS New Orleans, HVS
Recovery and Expansion of the Jersey Shore Hotel Market
Known for its beautiful beaches stretching along the Atlantic Ocean, the Jersey Shore comprises four diverse counties, each with its own distinct character and attractions. Featuring all types of lodging, from economy motels to luxury beachfront resorts, the Jersey Shore is a hot spot for many leisure travelers seeking a coastal getaway during the summer months.
By Andrew Cameron, Project Manager, Philadelphia, HVS
The Florida Panhandle Remains a Top-Tier Destination
The Florida Panhandle remains popular among hotel developers and investors given the strength of the market in the post-pandemic period. An easy-to-reach destination for drive-to and out-of-state travelers alike, this Gulf Coast region has been a hotbed of activity for construction and transactions in the traditional-model hotel space since the summer of 2020.
By Hannah McManus, Project Manager, Tampa, HVS
Q2 Industry Perspectives: Looking Ahead for the Travel Industry
Leisure demand normalizing and returning to pre-pandemic trendsHilton CEO, Chris Nassetta: Leisure demand in the U.S. remained strong but grew more modestly year-over-year due to tougher comparisons. We’re having a wildly strong summer in leisure. The only places where leisure has backed off a bit is where you would expect it, where it’s normalizing from crazy highs.
By Jamie Mageau, Director of Research Products, U.S. Travel Association
Slow but Steady Recovery for the Silicon Valley Lodging Market
Since the onset of the COVID-19 pandemic, Silicon Valley has experienced drastic changes including the shift to remote work policies, the exodus of several major companies, and the widespread layoffs in Q4 2022 and Q1 2023. The table below summarizes recent layoffs and remote work policies at major companies in Silicon Valley.
By John Berean, Managing Director, HVS
Louisville, KY Hotel Market: Room to Grow
Since 2020, the Louisville hotel market has seen an increase in leisure travel associated with bourbon tourism, its nearby universities, and the Kentucky Derby. It is because of these large demand generators that the market has been able to recover most of its occupancy-based COVID-19 losses. Commercial travel has also helped to bolster the market. As employees have begun to return to offices and as business travel has increased, demand within this segment has improved.
By Kaitlyn Hennessy, Consulting and Valuation Project Manager at HVS St. Louis, HVS
The Q2 Business Travel Tracker Shows Business Demand is Normalizing While Cost Constraints Diminish
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.
By Jamie Mageau, Director of Research Products, U.S. Travel Association
Current State of the Pima County Hospitality Industry
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.
By Zabada Abouelhana, Project Manager in the HVS St. Louis office, HVS