While the percentage of leisure travelers who report making reservations online has grown more than thirty-seven percent (37%) since the year 2000, "Consumers' search behavior has changed in recent years as people have become more familiar with search technology and the number of travel planning/purchasing sites has grown exponentially," said Peter C. Yesawich, chairman and CEO of Ypartnership.
The U.S. hotel industry posted declines in all three key performance measurements during April, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 11.1 percent to end the month at 56.4 percent. Average daily rate dropped 9.4 percent to finish the month at US$98.37. Revenue per available room for the month decreased 19.5 percent to finish at US$55.48.
Jones Lang LaSalle Hotels today released its bi-annual Hotel Investor Sentiment Survey which shows hotel investors’ sentiment for short–term performance ?defined as six-months? declined to a new low, reaching -57.5 percent in the Americas compared with previous sentiment of -52.5 percent following 9/11. Investors’ short-term sentiment for industry performance remains subdued as economic strain continues to weigh down hotel markets across the Americas.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 10-16 May, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 11.2 percent to end the week at 61.1 percent. Average daily rate dropped 8.8 percent to finish the week at CAD$124.96. Revenue per available room for the week decreased 19.0 percent to finish at CAD$76.41.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 3-9 May, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.6 percent to end the week at 59.4 percent. Average daily rate dropped 7.3 percent to finish the week at CAD$125.61. Revenue per available room for the week decreased 19.1 percent to finish at CAD$74.61.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 3-9 May 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 14.0 percent to end the week at 53.6 percent. Average daily rate dropped 9.8 percent to finish the week at US$97.58. Revenue per available room for the week decreased 22.4 percent to finish at US$52.32. Of the Top 25 Markets, Nashville, Tennessee, was the only market to report a increase in any of the three key performance measurements, increasing in ADR 0.3 percent to US$101.66.
The good news is that when faced with lower levels of business in 2008, U.S. hotel managers cut operating costs by 0.3 percent. Unfortunately, total hotel revenues dropped 1.3 percent, resulting in a 3.8 percent decline in net operating income for the average U.S. hotel according to findings released today by PKF Hospitality Research (PKF-HR) in its 2009 edition of Trends® in the Hotel Industry. Given the depth and breadth of the continuing economic downturn, further expense cuts will not be enough to offset the anticipated declines in revenue in 2009.
In Q1 2009, the US Construction Pipeline decelerated rapidly and now stands at 4,918 projects / 619,431 rooms. Compared to the Pipeline peak in Q2 2008, this is a drop of 16% by projects and 21% by rooms, a substantial fall-off for a three-quarter period. Current pipeline trends are beginning to reflect the deep recession in the economy, the banking crisis, the evaporation of mortgage lending, and serious shortfalls in lodging operating performance.
STR projects a 9.8-percent year-over-year decline in revenue per available room for 2009, and it expects a 1.5-percent increase in 2010, according to the latest data released from the Hendersonville-based company. A difficult environment resulted in a 17.7-percent RevPAR decline in the first quarter of 2009 and led to the company revising its forecast. STR expects the second quarter to continue to be challenging before the industry’s performance slows its slide during the third and fourth quarters.
The U.S. hotel industry posted declines in all three key performance measurements during March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy in March fell 11.6 percent to end the month at 55.2 percent (62.5 percent in March 2008). Average daily rate dropped 9.6 percent to finish the month at US$99.42 (US$109.97 in March 2008). Revenue per available room for the month decreased 20.0 percent to finish at US$54.93 (US$68.69 in March 2008).
The U.S. hotel industry posted declines in three key performance measurements during the week of 12-18 April 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 10.7 percent to end the week at 57.4 percent. Average daily rate dropped 10.3 percent to finish the week at US$97.25. Revenue per available room for the week decreased 19.9 percent to finish at US$55.83.
Since 2005, resort properties throughout the United States have been experiencing declines in all three key hotel performance measures, as demand has decreased significantly. In light of the current economic state, this decline has become more severe. Teamed with the large supply increases throughout the resort segment, occupancy and revenue per available room seem to be declining further—though hopefully only for a short time. As can be seen from STR Global data, resort properties have endured huge declines of occupancy, average daily rate and RevPAR since 2007. The figures began to drop off slowly around 2005, decreasing severely into negative territory around 2008 when economic conditions began to worsen. Unfortunately, many resorts have succumbed to discounting, driving down ADR. With demand at an all-time low, many resort operators believe this is the only option for maintaining occupancy.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 5-11 April 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 20.8 percent to end the week at 49.2 percent. Average daily rate dropped 8.6 percent to finish the week at CAD$116.19. Revenue per available room for the week decreased 27.6 percent to finish at CAD$57.13.
The U.S. hotel industry posted declines in all three key performance measurements during the week of 29 March-4 April 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 9.9 percent to end the week at 56.2 percent (62.3 percent in the comparable week in 2008). Average daily rate dropped 9.0 percent to finish the week at US$98.79 (US$108.59 in the comparable week in 2008). Revenue per available room for the week decreased 18.0 percent to finish at US$55.49 (US$67.68 in the comparable week in 2008).
Hotel owners and management companies are accelerating efforts to fortify cash positions in a bid to survive the current downturn and to strategically position their businesses for mid-term and long-term growth, according to a survey by Ernst & Young LLP. "Many hotel enterprises have identified and continue to identify ways to more closely manage costs. They are intensifying their focus and practices around risks and controls, with an objective of emerging from the current downturn stronger. Those that are effective will remain competitive in the short-term, and will attract more capital and accelerate their growth in the next up-cycle," says Michael Fishbin, National Director, Ernst & Young LLP Hospitality Services Group.
The U.S. hotel industry posted declines in three key performance measurements during the week of 22-28 March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.3 percent to end the week at 56.6 percent (64.6 percent in the comparable week in 2008). Average daily rate dropped 8.8 percent to finish the week at US$99.77 (US$109.34 in the comparable week in 2008). Revenue per available room for the week decreased 20.0 percent to finish at US$56.50 (US$70.61 in the comparable week in 2008).
As the saying goes, the bigger they come, the harder they fall. And the New York City hotel market, which had started to achieve new peaks of performance, has tumbled badly since October 2008. Almost to the day that Lehman Brothers collapsed, the NYC hotel market has been weakening. But the weakness in the financial markets only tells part of the story. This article will examine the recent trends in New York hotel market conditions and provide some insight into what the future might hold.
The Canadian hotel industry posted decreases in all three key performance measurements during the week of 22-28 March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 3.8 percent to end the week at 57.5 percent. Average daily rate dropped 3.0 percent to finish the week at CAD$120.20. Revenue per available room for the week decreased 6.8 percent to finish at CAD$69.06.
The global credit crunch and the recession that followed have hit the Canadian hotel real estate sector, which experienced a 77 per cent decline in investment activity, falling to $1.1 billion over the past year, according to Colliers International Hotel’s 2009 Canadian Hotel Investment Report released today. The report also found the average price per room fell by 25 per cent to $116,500 in 2008 from $154,200 the previous year.
The Canadian hotel industry posted declines in all three key performance measurements during the week of 1-7 March 2009, according to data from STR. In year-over-year measurements, the industry’s occupancy fell 12.9 percent to end the week at 55.4 percent. Average daily rate dropped 3.4 percent to finish the week at CAD$125.95. Revenue per available room for the week decreased 15.8 percent to finish at CAD$69.83.