Using the Labor Data from Hotel Effectiveness to Minimize Costs and Turnover
Adam and Larry Mogelonsky | January 11, 2023
Four Creatively Destructive Forces for the Hotel Industry
Larry and Adam Mogelonsky | July 13, 2022
Hotel Recovery
Lodging Analytics Research & Consulting (LARC) Provides 2022 U.S. Lodging Industry Forecast Update
| January 25, 2022
January 25, 2022 - Over the past two months, the Omicron variant of Covid-19 has spread across the country further derailing the lodging recovery. While leisure demand remains robust, continued uncertainty surrounding the duration and magnitude of future variants has made it increasingly difficult for corporations to hold return-to-office plans. As such, group and corporate travel has only slowly begun to rebound and it remains unclear how quickly corporate travel will recover to pre-pandemic levels. Our U.S. industry forecast released on December 1, 2021, acknowledged these challenges, and we had a slightly more positive view of econo...
Luxury Tourism Recovery Quicker Than Budget Tourism in US Due to Increase in High-Net-Worth Individuals
GlobalData | January 24, 2022
The pandemic has transformed many travelers into high-net-worth individuals and made the super-wealthy even wealthier, according to GlobalData. The leading data and analytics company notes that 29% of respondents in one of its live polls state that their budgets are ‘a lot’ or ‘slightly’ higher than pre-pandemic. The luxury leisure market experienced a strong start to recovery as wealthy consumers, now with higher levels of disposable income, began to travel once again in 2021. When looking at the US specifically, GlobalData found that total hotel revenue from leisure travelers for luxury hotels showed the strongest recovery in 202...
Chile Hotels Show Resilience
STR | January 24, 2022
Every country around the world has had to work through significant challenges since the start of the pandemic in 2020. For Chile, challenges were nothing new as protests that began in October 2019 were already affecting hotel performance around the country. The pandemic and those protests are still ongoing late into 2021, but Chile’s hotels are slowly but surely moving toward performance recovery. Recovering a bit differently Most countries are recovering average daily rate (ADR) faster than occupancy. In Chile, the opposite has been true. The country saw a 47.6% occupancy level in September, which was 90% of the comparable ...
STR: U.S. Hotel Results for Week Ending 15 January
STR | January 24, 2022
HENDERSONVILLE, Tennessee — January 24, 2022 — U.S. weekly hotel occupancy worsened in comparison with pre-pandemic levels, according to STR‘s latest data through 15 January. 9-15 January 2022 (percentage change from comparable week in 2019*): Occupancy: 48.8% (-16.3%) Average daily rate (ADR): US$122.12 (-1.6%) Revenue per available room (RevPAR): US$59.57 (-17.6%) On an absolute basis, occupancy was higher than the previous week, but the gap to 2019 levels widened, pointing to a larger impact from the Omicron variant. ADR and RevPAR were up week over week and when indexed to 2019. While none of the ...
The U.S. Construction Pipeline Stands at 4,814 Projects/581,953 Rooms at Year-End 2021
Lodging Econometrics | January 24, 2022
PORTSMOUTH, NH – January 24, 2022 – Analysts at Lodging Econometrics (LE) report that at the fourth quarter close of 2021, the total U.S. construction pipeline stands at 4,814 projects/581,953 rooms, down 8% by projects and 10% by rooms year-over-year (YOY). While project totals have dipped slightly YOY, the number of projects in the early planning stage continues to rise. In the final quarter of 2021, projects in the early planning stage experienced an 18% increase by projects and 11% by rooms YOY, for a total of 2,021 projects/239,816 rooms. Projects scheduled to start construction in the next 12 months stand at 1,821 projects/210,...
Report: Hotels Continue Moving Toward Recovery in 2022
AHLA | January 24, 2022
WASHINGTON — January 24, 2022 — The hotel industry will continue moving toward recovery in 2022, but the path will be uneven and potentially volatile, and full recovery is still several years away, according to the American Hotel & Lodging Association (AHLA)’s 2022 State of the Hotel Industry Report. The report, which reveals shifts in consumer and business sentiment, was created in collaboration with AHLA Silver Partner Accenture and is based on data and forecasts from Oxford Economics and AHLA Platinum Partner STR. The top findings of the report include: Hotel occupancy rates and room revenue are projected to approac...
STR: U.S. Hotel RevPAR Recovered 83% in 2021
STR | January 20, 2022
HENDERSONVILLE, Tennessee — January 20, 2022 — With improved performance as 2021 progressed, the U.S. hotel industry reported total-year revenue per available room (RevPAR) that was 83.2% of the pre-pandemic comparable, according to the latest data from STR. 2021 (percentage change from 2019): Occupancy: 57.6% (-12.6%) Average daily rate (ADR): US$124.67 (-4.8%) Revenue per available room (RevPAR): US$71.87 (-16.8%) In addition to 2020, U.S. hotel occupancy failed to reach 60% for just the second time since 2011. On a nominal basis, 2021 ADR was the fourth highest on record. The country’s RevPAR level was its...
Long-Term Global Business Travel Outlook Remains Strong but Omicron Variant Dampens Near-Term Momentum
GBTA | January 20, 2022
Alexandria, VA – January 20, 2022 – New variant developments, government restrictions, and international policy inconsistencies are currently hindering a more accelerated return for global business travel. However, the industry continues to reflect progress and optimism in its long–view expectations for 2022, according to the latest poll from the Global Business Travel Association (GBTA), the world’s largest business travel association and leader in education, research, networking and advocacy. “Here at the start of a new year, the business travel industry and business travelers continue to...
Chandigarh – the Emerging Hospitality Hotspot in India
Mandeep S. Lamba | January 17, 2022
By Mandeep Lamba, Dipti Mohan Chandigarh, also popularly known as the Tri-city region, is quickly becoming the new hospitality hotspot in India. Following the second wave, Chandigarh's hotel sector has recovered quicker than several other markets in the country, with occupancy rates rising from a low of around 15% in May 2021 – the peak of the second wave – to close to 70% by November 2021, comparable to pre-pandemic levels. Since the second wave ebbed, the Tri-city region, along with Goa, has had the highest month-on-month occupancy in the country. Moreover, in contrast to numerous other Indian business destinations, average...
U.S. Hotel Construction Ends Year Down 61,000 Rooms From Peak
STR | January 14, 2022
HENDERSONVILLE, Tennessee — January 14, 2022 — The number of U.S. hotel rooms in construction is down roughly 61,000 from the country’s all-time high achieved in early 2020, according to December 2021 pipeline data from STR. The final two phases of the pipeline, construction and final planning, are down by double digits from the same time last year while activity in the planning stage has risen significantly. December 2021 (percentage change in comparison with December 2020): In construction: 158,906 rooms (-19.2%) Final Planning: 185,231 rooms (-20.6%) Planning: 284,502 rooms (+38.9%) "This past ye...
7 Changes the UK’s Hotel Sector Can’t Afford to Ignore
HVS | January 13, 2022
The pandemic, Brexit and ongoing supply issues have prompted key changes in the UK’s hotel sector, many of which are long-term, if not permanent. ‘The past 18 months has been an unprecedented time for hotels. In order to survive, businesses must embrace change across their entire operation and do so quickly,’ says HVS London chairman Russell Kett, who outlines seven changes that businesses can’t afford to ignore as we move into 2022. 1. Reliance on technology: The use of smart rooms, digital reception, keyless rooms entry, smart payment, smart check-in/-out – with some hotels eliminating the need for a front-of-h...
RED ROOF Surpasses 60,000 Rooms, Celebrates Strong 2021 Growth
Red Roof | January 12, 2022
Columbus, OH - January 12, 2022 - Red Roof®, the leader in upscale economy lodging, with continued increased demand, now has surpassed 60,000 guestrooms across the United States. Red Roof’s strong growth in 2021 outperformed 2019 results, which was the best performance in the company’s 49-year history. The 2021 numbers reflect a record year for the company, in the face of one of the most difficult years the industry has endured. The results span key industry metrics that include: Increased ADR Room revenue across all brands increased 15% over 2019 Leading the way were Hometowne Studios by Red Roof +22.6% and Red Roof Inn...
Knowland Issues Its Quarterly Event Activity Forecast
KNOWLAND | January 12, 2022
The U.S. Meetings Recovery Forecast remains stable with no significant shifts in meeting patterns beyond normal seasonality changes ARLINGTON, VA — January 12, 2022 — Knowland, the world’s leading provider of data-as-a-service insights on meetings and events for hospitality, today released an updated U.S. Meetings Recovery Forecast (MRF) to provide the hospitality industry with predictive insights into event recovery over the next three years. The forecast remains unchanged from its initial release in November. Knowland’s MRF provides the percentage of demand growth as the industry moves into recovery. The highlights from the last...
Postcards From the Galapagos Islands: Do the Fittest Really Survive?
Dr Peter Varga | January 10, 2022
By Dr. Peter Varga, Dr. Andrea Muñoz When thinking of the Galapagos Islands the first images that we may conjure up are of giant tortoises, marine iguanas, sharks, beautiful tropical beaches, and a laid-back lifestyle where troubles of the outside world are non-existent and one’s daily ‘responsibility’ is to swim with the dolphins. This could have been the case in the past, but not in 2020! The pandemic impact on the Galapagos Islands The Galapagos Islands form an archipelago located around 1,000km from continental Ecuador. It is the country’s most important tourism destination and one of the most attract...
Operational and Financial Issues in the “Great Reopening”
Mark D. Podgainy | January 6, 2022
By Mark D. Podgainy U.S. Hotels have been on a roller coaster ride for the last 18 months, from the heights of 2019 and early 2020 RevPar performance to the depths of Covid-19 lockdowns, and on to the “Great Reopening” and the Omicron variant. Though we are living in a rapidly changing environment, there are some issues and trends that are likely to be with us for the near-to-mid future that owners, operators, investors and lenders should be aware of. • Supply chain issues. Supply chain issues are causing shortages and higher prices for everything from guest supplies and food and beverage items to FF&E and repair and mainten...
Although Pre-Pandemic Profitability Will Remain Elusive, the Industry Will Make Strides Toward Recovery in 2022
Fran Worrall | January 5, 2022
By Fran Worrall As the new year begins, industry experts are increasingly hopeful about the state of hospitality. After almost two years of an unprecedented downturn and despite ongoing effects of the pandemic—including the emergence of new COVID-19 variants and increased consumer awareness regarding health and well-being—2022 looks to be more promising as the industry figures out how to fulfill guest expectations without compromising safety. HU/HO recently sat down with three hospitality insiders—Hospitality Sales & Marketing Association International (HSMAI) President & CEO Bob Gilbert, Knowland CEO Jeff Bzdawka, and Kalibri Lab...
Top Concerns and Trends for Hoteliers in 2021
H&LA | January 5, 2022
By Heidi Banak, Steve Szczygiel In a brief look back at 2021, there was widespread hope that it would be a slow return back to normal as pandemic concerns eased and society reordered itself, but pandemic troubles lingered through the year. While lockdowns and closures may be a thing of the past, new concerns were thrust to the forefront as supply chains tightened, the labor market continued to shrink and hoteliers were forced to pivot from a crisis of closure and decreased demand to the reality of returning to full operation amid a much different landscape. Hotel & Leisure Advisors’ consultants have worked on many assignments i...
Six Ways Benchmarking Can Support Post-Pandemic Recovery
STR | January 3, 2022
Depending on when you read this blog, the situation around the pandemic has probably shifted since the time of writing—and could easily change again. No matter what stage of the pandemic you are experiencing, however, this brief guide on six practical ways benchmarking can support your distribution strategy and revenue recovery will remain the same. 1. Daily/weekly performance monitoring is now more important than ever Benchmarking is the process of measuring the performance results of your own business against various segments of the marketplace—namely, the competition. In top-line benchmarking, hotels usually compare thr...
Omicron Emergence a Yardstick for the Hotel Industry
HotStats | January 3, 2022
Though the materialization of new coronavirus strains vex, it turns out, the more thrown our way, the better we now appear to cope. Just as the world was rounding the corner on the Delta variant, along came Omicron—a rowdy interloper arriving to a party all hoped was winding down. And though the intrusion was noisy at first, Omicron could potentially be more insipid than insidious. Despite our best efforts, there is an assumption that COVID will become an endemic disease, meaning it’s here in perpetuity, like the flu. That means one thing: better get used to it. If it’s Omicron one day, it could be Upsilon next. For the hotel ...
STR: U.S. Hotel Results for Week Ending 18 December
STR | December 23, 2021
HENDERSONVILLE, Tennessee — December 23, 2021 — U.S. hotel performance surpassed the levels seen during the comparable week of 2019, according to STR‘s latest data through 18 December. 12-18 December 2021 (percentage change from comparable week in 2019*): Occupancy: 53.8% (+7.7%) Average daily rate (ADR): US$121.87 (+11.6%) Revenue per available room (RevPAR): US$65.61 (+20.2%) Percentage changes were in part lifted by the comparable week of 2019 (ending 21 December) being closer to Christmas. Among the Top 25 Markets, Norfolk/Virginia Beach saw the largest occupancy increase over 2019 (+20....
STR: Canada Hotel Performance Recovery Continued Slowly in November
STR | December 23, 2021
HENDERSONVILLE, Tennessee — December 23, 2021 — Canada’s hotel industry reported slightly lower performance levels from the month prior, but indexed comparisons with 2019 were better, according to STR’s November 2021 data. Occupancy: 49.7% (-18.4%) Average daily rate (ADR): CAD138.52 (-6.3%) Revenue per available room (RevPAR): CAD68.85 (-23.6%) "Although levels were seasonally lower, Canada's metrics inched closer to pre-pandemic figures," said Laura Baxter, CoStar Group's director of hospitality analytics for Canada. CoStar Group is the parent company of STR. “The RevPAR level was the closest the met...
Recover 2022! A Holistic Approach Is Needed to Respond to Post-Pandemic Changes
Linchi Kwok | December 21, 2021
By Linchi Kwok The COVID-19 pandemic had no doubt made an unprecedented impact on the hospitality and tourism industry. Yet, some products, such as home-sharing, extended stays, and quick-service restaurants, were able to adapt to the new changes quickly. Hence, they were not affected as much. Others might still need extra time to get back on their feet. It might seem that the global pandemic forced businesses to respond to the new changes in the market, but the truth is COVID-19 just accelerated many of the foreseeable changes we have already expected for the future. The businesses that can navigate through the COVID-19 crisis qu...
Strong Finish to 2021 for Most of U.S., Sizable RevPAR Gains for D.C. and New York
STR | December 20, 2021
STR’s final 51-chart map of the year shows recent national/regional trends and many states finishing 2021 strong. Further, trend lines for revenue per available room (RevPAR) on a total-room-inventory (TRI) basis provide ample evidence of the hotel industry’s extraordinary rebound, particularly in the second half of the year. Despite expectations for some travel hesitancy related to the spread of the Omicron variant, RevPAR for the four weeks ending with Week 50 (11 December) remained near (or above) 2019 levels for a vast majority of states. Of course, the most recent weekly index comparisons with 2019 are against normal, off-peak mon...
The Winners and Losers in the Pandemic? It Came Down to This.
HotStats | December 20, 2021
Location ... location ... location. It’s a constant refrain in real estate and, by extension, the hotel industry. The turn of phrase took on a whole new meaning in the wake of the COVID-19 pandemic. Depending on orientation, some hotels thrived, some survived, some shuttered and some didn’t survive. Asset type also had consequence. Full-service hotels situated in downtown locations with ample meeting space and F&B outlets were a victim of circumstance and did not fare well on a profitability continuum. Meanwhile, hotels in secondary or tertiary markets, so-called drive-to markets, or properties within resort destinations had a bet...
