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
Europe and Asia Pacific Show Increased Hotel Pipeline Activity
STR | October 18, 2021
LONDON — October 18, 2021 — Two of the four world regions, Europe and Asia Pacific, showed an increase in hotel pipeline activity at the end of the third quarter, according to September 2021 data from STR. September 2021 (% changes in comparison with September 2020) Europe In Construction: 230,265 rooms (+6.6%) Final Planning: 171,988 rooms (+5.9%) Planning: 148,565 rooms (-4.8%) Total Under Contract: 550,818 (+3.1%) Germany (46,494) and the U.K. (35,196) lead Europe in total rooms in construction. Asia Pacific In Construction: 478,193 rooms (0.0%) Final Planning: 178,195 rooms (+5.3%) ...
U.S. Hotel Construction Down 48,000 Rooms From Peak
STR | October 15, 2021
HENDERSONVILLE, Tennessee — October 15, 2021 — The number of U.S. hotel rooms in construction is down roughly 48,000 from the country’s all-time high in April 2020 (220,207 rooms), according to September 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. September 2021 (percentage change in comparison with September 2020): In construction: 172,251 rooms (-20.3%) Final Planning: 205,829 rooms (-17.2%) Planning: 263,673 rooms (+41.1%) “The impact...
UK Travel & Tourism Sector May Only Recover by a Third This Year
WTTC | October 14, 2021
London, UK – October 14, 2021 – The World Travel & Tourism Council (WTTC) says the UK’s Travel & Tourism sector’s year on year recovery may only claw back a third, whilst international travel spending continues to plummet. Latest research from WTTC, which represents the global Travel & Tourism sector, shows the recovery has been severely delayed by the lack of spending from international visitors. WTTC blames strict travel restrictions, such as the destructive ‘traffic light’ system, for wreaking havoc on the sector. Now, despite its highly successful vaccine rollout, the UK is set to record further losses in i...
People First: Complex Labor Market Putting Employees in the Driver’s Seat Means Hoteliers Will Need to Make Investing in People a Top Priority i
Ryan Hamilton | October 13, 2021
By Ryan Hamilton “Where did all the people go?” This was the question so often on the minds of hoteliers over the last two years, as news of the COVID-19 pandemic surfaced and rapidly permeated throughout our lives. Hotel lobbies that were once bustling with excited energy and tired travelers emptied, while airport terminals fell quiet. Hospitality professionals are in the business of serving people but, suddenly, there were simply no people to serve. And so, the question wasn’t just “where did all the people go?”, but rather, when will they come back? COVID-19 changed how we live and work in ways that will alter our behavior ...
STR: Preliminary September Data for Berlin Hotels
STR | October 12, 2021
LONDON — October 12, 2021 — Berlin’s hotel industry reported its second-best occupancy and highest room rates of the pandemic-era, according to preliminary September 2021 data from STR. Occupancy: 61.3% Average daily rate (ADR): EUR95.01 Revenue per available room (RevPAR): EUR58.20 The absolute ADR level was the highest in Berlin since March 2020, while RevPAR was the highest since February 2020. Occupancy was slightly lower than a domestic-driven 65.4% in August but was still the market’s second highest level since February 2020. Even with the overall improvement, Berlin’s performance remained well below the pre-p...
London’s Outlook: An Analysis by Hotel Class
STR | October 11, 2021
When booking a hotel room, guests are considering more factors than ever in deciding which property to call home in their destination. One of the many considerations is price, and by extension hotel class, which leads us to this latest analysis of occupancy on the books in London. Examining future occupancy levels by class allows for a better understanding of the traveler booking rationale for the upcoming months. Merry Christmas and not such a Happy New Year The short-term outlook for London is positive as summer ends and the industry transitions into the typically slower autumn and winter months. Leading bookings in the short-term are...
A Brighter Future for Colombia?
STR | October 11, 2021
Colombia’s accelerated vaccination rollout and lessened restrictions on eligibility pushed the country’s vaccination rate to 32.1% as of 22 September, according to Our World in Data. Is that growing vaccination rate helping improve hotel performance in this key South American country? The answer would seem to be, yes, but to a lesser extent for some areas of the country. As noted in one of our first articles regarding the early stages of Colombia’s recovery, the country’s hotel performance has been closely tied to the pandemic timeline. Most recently in August, Colombia’s hotel occupancy reached 48.8%, which was 76.9% of the 20...
Rising Costs, Staffing Shortages and Multi-Speed Recovery Play Havoc With the UK Hotel Sector
HVS | October 7, 2021
06 September 2021, London: Resetting the hotel balance sheet to be fit for recovery was the theme of the latest conference organised by global hotel consultancy HVS, legal expert Bird & Bird, publishing group EP Business in Hospitality and restructuring advisory firm AlixPartners. Addressing both in-person and online delegates yesterday [5th October 2021) Graeme Smith, EMEA head of hospitality & leisure at AlixPartners considered the support received by hotels from lenders, resulting in limited restructuring activity, despite disruption that the pandemic caused. “There are now a number of different lenders, the landscape ...
WTTC Research Reveals Travel & Tourism’s Slow Recovery Is Hitting Jobs and Growth Worldwide
WTTC | October 6, 2021
LONDON, UK – October 6, 2021 – The Travel & Tourism sector’s continued sluggish recovery will see its year-on-year contribution to global GDP rise by less than one third in 2021, according to new research from the World Travel & Tourism Council (WTTC). WTTC, which represents the global Travel & Tourism private sector, says the recovery of the sector has been hampered by the lack of international coordination, severe travel restrictions and slower vaccination rates in some parts of the world which still hamper many regions of the world. In 2019, the Travel & Tourism sector generated nearly USD 9.2 trillion to the global...
Did Europe Lose Another Summer?
STR | October 4, 2021
Summer 2020 undoubtedly looked much different around Europe due to the global impact of the COVID-19 pandemic. Fast forward to this year, and there was hope that the region’s effort toward a more “normal” summer would be successful. On 1 July 2021, the EU Digital COVID Certificate Regulation entered into application, allowing fully vaccinated tourists to avoid tests or quarantines and broaden the list of European regions in which they could travel. July and August are historically two of Europe’s most important months for hotels with travellers spread across the continent on summer holidays, so have efforts like the aforementioned ...
Vaccines and Reopened Borders Driving Tourism’s Recovery
UNWTO | October 4, 2021
International tourism enjoyed signs of rebound in June and July 2021 as some destinations eased travel restrictions and the global vaccination rollout advanced in many parts of the world. According to the latest edition of the UNWTO World Tourism Barometer, an estimated 54 million tourists crossed international borders in July 2021, down 67% from the same month in 2019, but the strongest results since April 2020. This compares to an estimated 34 million international arrivals recorded in July 2020, though well below the 164 million figure recorded in 2019. Moderate rebound for most destinations Most destinations reporting data for June and...
With Summer’s Last Breath, Global Hotel Industry Still Gasping for Air
HotStats | September 28, 2021
The collective hotel industry is facing a cold, hard truth: attaining the same level of pre-pandemic operational performance will not be measured in days, but months, even years. That's what August data from HotStats portends and at a crossroads, as summer gives way to fall and a host of new variables come into play that could derail the modest success the past several months have demonstrated. In the U.S., profit continues to lag its 2019 form, with GOPPAR recorded at $52.27 in August, 31% lower than it was in August 2019. However, in a business that changes block to block, there is some good news, with some pockets surpassing expectation...
Latest Hurricane Ida Analysis Reflects Vast Reopening in New Orleans
STR | September 22, 2021
Following up on STR’s initial Hurricane Ida analysis from 10 September, a vast majority of hotels in the New Orleans MSA have reopened with improving occupancy levels, especially in the core city center/central business district. This high volume of reopenings was to be expected because most closures were due to short-term power outages rather than property damage. Remaining short-term temporary closures are mostly concentrated in submarkets outside of the city. In terms of Ida-related demand, data for 5-11 September indicated a smaller shift compared with the previous week. Occupancy moved downward in safe harbor markets in Alabama, Mis...
Hotels Projected to End 2021 Down $59 Billion in Business Travel Revenue
AHLA | September 15, 2021
WASHINGTON – September 15, 2021 – The hotel industry is projected to end 2021 down more than $59 billion in business travel revenue compared to 2019, according to a new report released today by the American Hotel & Lodging Association and Kalibri Labs. That comes after losing nearly $49 billion in business travel revenue in 2020. Business travel is the hotel industry’s largest source of revenue and has been slow to return since the onset of the pandemic. Business travel includes corporate, group, government, and other commercial categories. Business travel revenue is not expected to reach pre-pandemic levels until 2024. The ne...
London Shows Highest Hotel Performance Since Start of the Pandemic
STR | September 13, 2021
LONDON — September 13, 2021 — STR’s preliminary August 2021 data showed London with its highest hotel performance levels since the start of the pandemic. Occupancy: 56.8% Average daily rate (ADR): GBP112.58 Revenue per available room (RevPAR): GBP63.97 The absolute occupancy and RevPAR levels were the highest in the market since February 2020, while the ADR level was the highest since March 2020. At the same time, performance remained well below the pre-pandemic comparables from August 2019: occupancy (86.2%), ADR (GBP150.39) and RevPAR (GBP129.59). All of STR’s COVID-19 analysis can be found ...
MMGY Reveals How the Vaccinated and Unvaccinated Say They Will Travel Heading Into the Holiday Season
MMGY Travel Intelligence | September 10, 2021
The majority of both groups are making plans, but how they travel may differ KANSAS CITY, MO (September 10, 2021) – MMGY Travel Intelligence, MMGY Global’s research and insights division, has released the findings from the 2021 “Fall Edition” of its Portrait of American Travelers® survey fielded in late July. The report highlights continuing strength in traveler sentiment, including high expectations for holiday travel. It also reveals the vast majority of vaccinated and unvaccinated travelers are planning trips in the months ahead, but the types of trips they are planning are different. Americans’ intent to take a vacation...
Tourism After Lockdown: Hotel Guests Expect Normal in the New Normal
STR | September 10, 2021
The Delta variant continues to disrupt the reopening of economies in many parts of the world and, indeed, some countries are grappling with previously unseen levels of infections. Consequently, a challenge with tourism right now is responding to the evolving needs of consumers. Vaccination progress has enabled international travel to restart in some countries, and after months of restrictions, many consumers have dusted off their passports to enjoy an eagerly awaited break. However, a key question remains: what are the needs and expectations of travelers as we adapt to coexisting with the virus? July 2021 research among a sample of global...
AHLA Applauds Enhancements to Loan Program for Hoteliers
AHLA | September 10, 2021
WASHINGTON – September 10, 2021 – The White House yesterday announced the expanded COVID-19 Economic Injury Disaster Loan (EIDL) program, giving qualified hoteliers access to up to $2 million per loan. The American Hotel & Lodging Association (AHLA) has been working with Biden Administration and Small Business Administration officials for months to secure EIDL changes that would benefit hoteliers. Changes announced yesterday include: Raising the loan cap to $2 million per loan Raising the aggregate loan cap to $10 million Simplifying the affiliation rules Allowing 24 months of deferred payment Allowing use of fun...
Expedia Group Shares Fall Travel Outlook
Expedia Group | September 9, 2021
Summer brought promise of a travel boom in the U.S., with COVID-19 restrictions easing and vaccination rates rising. International destinations welcomed Americans back, and the sheer amount of people boarding planes was above and beyond expected. Then, swiftly, the Delta variant swept through the states, and many started to wonder if we’d ever get back to precedented times. Still, the desire to travel remained strong. We are in the midst of a shift from “when will the pandemic end?” to “how do we learn to adapt?” And, as we head into the fall, the question isn’t whether people will travel — it’s how they’ll travel. We du...
The Road Ahead for Hotels in 2022 and Beyond
Robert A. Rauch | September 8, 2021
By Bob Rauch Before we jump into 2022 plans, please take the quick survey/debate above of how you view the business and feel free to opine on why. Answers will appear on sided.co and on the hotelguru.com website. Hotel Industry Post-Pandemic The number of areas of responsibility that fall under a hotelier is hard for other businesses to imagine. Development, acquisition, finance, operations, customer service, restaurant, bar, maintenance, sales, marketing, revenue management and much more. The businesses churn guests daily and requires real time daily decision making. As we look toward 2022, what should we look at? Before we start, I’d...
Ten Ways for Hotels to Welcome Back Guests Post Pandemic… and Profit!
CICERO CONSTRUCTION GROUP | September 8, 2021
PLAINFIELD, IL - September 8, 2021 - With travel resuming, hotel owners and managers are looking past months of lockdowns and hundreds of cancellations to a brighter future. Finding ways to offer a safe guest experience, while also boosting revenue is key to the path forward economic recovery. To give your hotel some needed "bounce" in its bounce back, consider these ideas from Cicero Construction Group, a general contractor specializing in hotel renovations. Careful attention to cleanliness. Cleanliness has always been a key consideration in the hotel industry. Even prior to the pandemic, properties were moving toward hard surfac...
MythBusters: Delta Edition
MARK LEWIS-BROWN | September 2, 2021
By Mark Lewis-Brown As I mentioned in Part One and Part Two of this article, there are many mixed messages floating around in the hospitality industry about how/what hoteliers need to do to become profitable in the “new normal” that we’re all facing. Unfortunately, things just got EVEN more confusing… With the wide spread of the Delta Variant, around most US states – and most of the world – the recovery phase of the COVID-19 pandemic is again changing, and hotels must update their operational strategies accordingly, to ensure their guests remain as safe as possible. But to make sure that you’re taking the best, ...
67% of Business Travelers to Reduce Trips Amid Rising COVID-19 Cases
AHLA | August 31, 2021
Most Are Likely to Cancel Existing Trips Without Rescheduling WASHINGTON (August 31, 2021) – U.S. business travelers are scaling back travel plans amid rising COVID-19 cases, with 67% planning to take fewer trips, 52% likely to cancel existing travel plans without rescheduling, and 60% planning to postpone existing travel plans, according to a new national survey conducted by Morning Consult on behalf of the American Hotel & Lodging Association (AHLA). Despite an uptick in leisure travel over the summer, the new survey highlights the dim outlook for business travel and events, which account for more than half of hotel revenue and...
U.S. Travel Reacts to EU Travel Restriction Recommendation
U.S. Travel Association | August 31, 2021
WASHINGTON (August 31, 2021)—U.S. Travel Association Executive Vice President of Public Affairs and Policy Tori Emerson Barnes issued the following statement on news that the European Union recommends removing the United States from its list of countries for which travel restrictions should be lifted: “This is a disappointing development following the boost in inbound visitation by vaccinated travelers that many E.U. countries experienced this summer. It’s a setback despite the uptake in vaccinations—the tool that’s highly effective against the variants—which are on the rise on both sides of the Atlantic. “Travel is a cru...
