International Visitors Spent Nearly $20.1 Billion Traveling Within the United States in March
National Travel and Tourism Office (NTTO) | May 23, 2024
CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16, 2024
Market Reports
Tourism After Lockdown: The Long and Short of Long-Haul Travel
STR | April 13, 2021
Mass COVID-19 vaccination programs are underway across the globe and providing the tourism and hospitality industry a much-needed confidence boost following 12 months or so of seismic declines. However, with lockdowns still in place for some regions and the emergence of new virus variants, predicting future travel demand remains challenging. To track evolving consumer trends in the sector, and examine everchanging attitudes on travel, STR conducted a quantitative survey in February 2021 among 1,333 respondents from its Traveler Panel. In this first article of our latest Tourism After Lockdown series, we look at sentiment towards intern...
Corpus Christi Has Most Expensive Hotel Rates in Texas, According to Survey
Cheaphotels.org | April 13, 2021
DALLAS - April 13, 2021 - Corpus Christi, located in the Gulf of Mexico, is the most expensive destination in Texas based on the cost of lodging, according to a recent survey conducted by CheapHotels.org. The survey compared 30 cities in the Lone Star State, using the average rate for the cheapest available double room (minimum: 3-star hotel) during the month of April 2021. April is typically the month during which most Texan cities reach their highest average hotel rates. To stay in Corpus Christi, travelers will have to spend an average of $105 per night. Also on the podium are the border city of El Paso and the McLennan...
Baird/STR Hotel Stock Index Dipped 0.2% in March
Baird | April 12, 2021
HENDERSONVILLE, Tennessee, and MILWAUKEE — April 12, 2021 — The Baird/STR Hotel Stock Index dipped 0.2% in March to a level of 5,131. Year to date through the first three months of 2021, the stock index was up 12.2%. “Hotel stocks were relatively flat in March but underperformed their benchmarks as investors rotated into more defensive and value-oriented sectors,” said Michael Bellisario, senior hotel research analyst and director at Baird. “The pent-up demand expectation is becoming a reality, and broader travel trends continue to improve as vaccination rates improve; with leisure strength well understood at this point, we expec...
2020 European Hotel Transactions
Shaffer Patrick | April 12, 2021
By Shaffer Patrick Total European hotel transaction volume reached €8.5 billion[1] in 2020, representing a fall of 69% on 2019 (see Chart 1), which was the previous market peak at €27.1 billion. Even so, 2020 figures remain significantly ahead of those seen in the Global Financial Crisis, with 2009 seeing only €3.1 billion in transaction volume. Highlights 48% of the total 2020 transaction volume occurred in the first three months of the year, primarily representing transactions that were agreed pre-pandemic; Single assets accounted for €5.5 billion or 65% of the 2020 total, decreasing 54% from 2019, though significantly ...
U.S. Market Recovery Monitor – 3 April 2021
STR | April 8, 2021
April 8, 2021 - Previous MRM versions: March 20 | March 27 Week Ending 3 April 2021 Weekly RevPAR rose to US$65.34, which was a 4.2% increase week over week and the industry’s highest level of the past 56 weeks when indexed to 2019. RevPAR has increased week over week all but three times this year. STR’s Market Recovery Monitor reflected the country’s stronger overall RevPAR performance with 73 markets either in Recovery or Peak categories. More encouraging, only 20 markets were in the Depression category, the least of the past 53 weeks. Top 25 Markets are also improving, and as a group, entered the Recession phase for the first...
STR: U.S. Hotel Results for Week Ending 3 April
STR | April 8, 2021
HENDERSONVILLE, Tennessee — April 8, 2021 — U.S. hotel occupancy remained flat from the previous week, while the country’s ADR and RevPAR levels were its highest since the beginning of March 2020, according to STR‘s latest weekly data through 3 April 2021. 28 March through 3 April 2021: Occupancy: 57.9% Average daily rate (ADR): US$112.76 Revenue per available room (RevPAR): US$65.33 The occupancy level was 1 point below the pandemic peak reached two weeks prior. The RevPAR value represented 73.1% of the comparable 2019 level, which is the closest the U.S. has come to RevPAR recovery territory in STR’s Mar...
COVID-19’s Impact on the San Antonio Lodging Market
David Bone | April 8, 2021
By David Bone, Shannon Sampson Prior to the COVID-19 pandemic, Downtown San Antonio was enjoying a decade of revitalization and growth. The year 2020 was poised to be a banner year, spurred by the Henry B. Gonzalez Convention Center’s $325-million renovation and expansion, which was completed in January 2016. Data provided by the Texas Comptroller of Public Accounts indicate that hotel revenue across the San Antonio-New Braunfels MSA declined by roughly 53% in 2020. RevPAR for the MSA remained relatively stable in 2018 and 2019, before plummeting approximately $40 in 2020 to a historical low of $37. New hotel supply increased by alm...
Majority of India Hotel Markets Remain in Recession Territory
STR | April 6, 2021
India hotels achieved a 50% occupancy level in February, which was the first time the country eclipsed that monthly mark since the start of the pandemic. Occupancy climbed to 54.5% (-23.5% year over year), while average daily rate (ADR) reached INR4,361.46, a drop of 31.4% year over year. The ADR level was the second highest since the start of the pandemic, trailing behind December 2020 (INR4,554.29). While the actual levels are something to cheer about, the year-over-year percentage changes have become less actionable when analyzing performance recovery. STR’s new Market Recovery Monitor compares the performance of key markets within...
Short-Term Rentals Record Higher Occupancy, RevPAR in February
STR | April 6, 2021
HENDERSONVILLE, Tennessee — April 6, 2021 — Short-term rentals in Miami, Nashville and Philadelphia recorded increases in occupancy and revenue per available room (RevPAR) in February 2021, according to data from STR. Short-term rentals continued to post higher occupancy levels than hotels in each of the three markets. Building on STR’s world-leading hotel performance database, Miami, Nashville and Philadelphia are the first three U.S. markets where the company has expanded its benchmarking offerings via a pilot study. Included in STR’s short-term rental sample are both multifamily and single-family short-term rentals. ...
STR: U.S. Leads World in Hotel Openings as Construction Activity Declines
STR | April 6, 2021
HENDERSONVILLE, Tennessee — April 6, 2021 — The U.S. led the world in new hotel and room openings during Q1 2021, according to global pipeline data from STR’s AM:PM platform. At the same time, the country’s construction activity continues to decline in comparison with pre-pandemic levels. Over the three-month period, the U.S. opened 220 properties accounting for 26,057 rooms. Four additional countries opened more than 2,000 rooms during the same period. 1. U.S. (26,057 rooms) 2. China (12,418 rooms) 3. Japan (2,499 rooms) 4. Australia (2,382 rooms) 5. United Kingdom (2,214 rooms) The number of rooms current...
U.S. Hotel Profitability Hits Pandemic High
STR | April 5, 2021
BROOMFIELD, Colorado—U.S. hotel gross operating profit per available room (GOPPAR) reached its highest absolute level since February 2020, according to STR‘s February 2021 monthly P&L data release. GOPPAR had come in no higher than US$12.69 for any month since the pandemic’s initial impact on industry performance last March. In addition to improved absolute levels in the profitability metrics, year-over-year comparisons were less steep. GOPPAR: US$17.35 (-83.3%) TRevPAR: US$85.11 (-67.4%) EBITDA PAR: US$0.14 (-99.8%) LPAR (Labor Costs): US$34.26 (-60.2%) “Year-over-year percentage changes will turn positive ...
Bali Trailing Other Indonesian Markets in Hotel Performance Recovery
STR | April 1, 2021
Indonesia finished 2020 in similar shape as its regional peers. Domestic demand was strong enough to lift hotel occupancy from pandemic low points but not sufficient to overcome the void in international travel. As Indonesia moves through the early part of 2021, the impact from lost international demand is most obvious in Bali, which continues to trail the country’s regional markets in the recovery process. Aside from a Singapore occupancy level lifted by quarantine demand, Indonesia was right in line with other Asia Pacific countries at 36% for the year.Business was worse in Bali, however, with occupancy hanging below 20% for much of th...
Saudi Arabia Leads the World in Projected Hotel Supply Growth
STR | April 1, 2021
LONDON — April 1, 2021 — Saudi Arabia shows 73,057 rooms across the three phases of the hotel pipeline, and the country’s projected 67.1% increase in room supply over the next three years is the highest among the world’s 50 most populated countries, according to STR’s AM:PM platform. Of the total rooms in the pipeline as of 11 March 2021, 16,965 were scheduled to come online over the duration of 2021. The 67.1% increase assumes completion of all projects in construction, final planning and planning. “Saudi Arabia’s growth aspirations, along with the strength of other Middle East hospitality markets such as Qatar and the ...
Tourist Arrivals Down 87% in January 2021 as UNWTO Calls for Stronger Coordination to Restart Tourism
UNWTO | March 31, 2021
The devastating impact of the COVID-19 pandemic on global tourism has carried on into 2021, with new data showing an 87% fall in international tourist arrivals in January as compared to 2020. The outlook for the rest of the year remain cautious as the World Tourism Organization (UNWTO) continues to call for stronger coordination on travel protocols between countries to ensure the safe restart of tourism and avoid another year of massive losses for the sector. Following a difficult end to 2020, global tourism suffered further setbacks in the beginning of the year as countries tightened travel restrictions in response to new virus outbreaks....
Europe’s Hotels See Values Fall by up to 15% but Longer Term Outlook Strong, Reveals HVS Report
HVS | March 31, 2021
London - March 31, 2021 - Sharp declines in revenue caused by the pandemic coupled with a more cautious approach to lending has prompted hotel valuations to fall over the past 12 months, although not as steeply as some had initially anticipated. This is the key finding of the annual European Hotel Valuation Index (HVI) compiled by global hotel consultancy HVS, which reports that in the year of the COVID-19 outbreak hotel values saw average declines of between 5% and 15% compared with the previous year. Last year followed a decade of hotel value rises across Europe, with 2019 posting an average 3% increase – with some properties in...
Around the Globe Hotel Profit Perks Up, Just Not in Europe
David Eisen | March 30, 2021
By David Eisen The U.S. hotel industry was in need of a month like February. For Europe, it was another in a string of profitability pain. In a turnaround from previous months, gross operating profit per available room (GOPPAR) in the U.S. turned positive in February and at $10.82, it was 675.5% higher than in January. Though the jump into positivity after eight of the last 10 months being negative was cause for celebration, GOPPAR in February is still 89.5% down over the same time a year ago. In step with the boost in profit was a jump in both rooms and total revenue. RevPAR was up $14 over January to $50.81, while TRevPAR increased...
COVID-19’s Impact on the San Francisco Lodging Market
John Berean | March 30, 2021
By John Berean Prior to the onset of COVID, San Francisco was amid a tech-driven renaissance that placed the city and the nine-county San Francisco Bay Area as one of the top-growing metro areas over the last decade. Similar to during the internet-driven dot-com boom of the late 1990s, the city experienced tremendous economic growth, resulting in strong hotel performance. Market occupancy exceeded 80% between 2012 to 2019, while ADR increased at a compound annual growth rate of 7% for the nine years between 2010 and 2019. By many metrics, 2019 was a record year for San Francisco. According to the San Francisco Travel Association (SF Tr...
Operating Observations From 2020
Robert Mandelbaum | March 29, 2021
By Robert Mandelbaum In 2020, U.S. hotels suffered the worst year of operating performance since CBRE began tracking profitability in 1938. During the year, the average hotel in CBRE’s monthly survey of U.S. operating performance experienced a 78 percent decline in Gross Operating Profits (GOP) and achieve the lowest GOP margin (19.7%) over the past 82 years. While hotels may have earned enough revenues to cover their direct operating expenses, it is likely that the average hotel did not generate any cash from operations to cover their debt service. To track operating performance during 2020, CBRE collected monthly operating state...
STR: U.S. Hotel Results for Week Ending 20 March
STR | March 29, 2021
HENDERSONVILLE, Tennessee—U.S. weekly hotel occupancy jumped almost seven points from the previous week to the highest level in the country since early March 2020, according to STR‘s latest data through 20 March 2021. 14-20 March 2021: Occupancy: 58.9% Average daily rate (ADR): US$108.07 Revenue per available room (RevPAR): US$63.62 The 58.9% absolute occupancy was a 93.9% increase from the comparable, pandemic-affected week last year, but more importantly, represented almost 85% of occupancy regained from the 2019 benchmark. There was also more improvement in ADR, which reached 81% of the comparable 2019 level. Every...
Hotel Debt Markets Improving as Major Lenders Return to Market
JLL | March 29, 2021
NEW YORK – March 29, 2021 – As the lodging industry continues to head down the road to recovery, JLL’s Hotel Investment Banking team is ramping up efforts, being actively engaged on over $2 billion in financing assignments, as the hospitality debt market is showing a strong resurgence. “We’ve been pleasantly surprised by the rapid recovery of the hospitality debt markets over the past several months,” said Senior Managing Director Kevin Davis, who leads JLL’s Investment Banking team. “The increased liquidity and lower cost of debt capital should be a strong catalyst in the recovery of hotel asset values and should drive si...
Spring Has Arrived in New England, Bringing With It Hope for Its Lodging Markets
Sebastian J. Colella | March 29, 2021
By Sebastian Colella After a long and grueling 12 months, spring has finally arrived in New England and with it, renewed hope for its lodging markets seems widespread across all six states. Although very little improvement has materialized through Q1 of 2021, there are many indicators that growth in lodging demand is around the corner. The national lodging market has begun to see improvements as hotel occupancy for the week ending March 20 increased to its highest level since early March of last year, according to STR. There are many reasons to believe New England lodging markets will experience similar trends once tourism season is underw...
HVS Market Pulse Update – Minneapolis – St. Paul
Tanya Pierson | March 25, 2021
By Tanya J. Pierson, Justin Westad, Rod Clough Rod Clough, President – Americas, interviewed Tanya Pierson, Senior Managing Director, Minneapolis and Justin Westad, Vice President, Minneapolis overseeing the Upper Midwest region, on March 23, 2021, to discuss the current Minneapolis market dynamics and the outlook for recovery. Tanya and Justin outline what the market looks like today, the factors contributing to current performance levels, and what will help drive improvements in future performance. They provide their forecast of occupancy and average rate for Minneapolis-St. Paul, as well. This seven-minute video provides important ins...
STR: Canada Hotel Performance for February 2021
STR | March 24, 2021
HENDERSONVILLE, Tennessee — 24 March 2021 — Canada’s hotel industry reported slightly higher performance when compared with recent months, according to STR’s February 2021 data. The country’s occupancy level was its highest since November 2020, while ADR and RevPAR were the highest since October 2020. Year-over-year declines remained significant but will improve in future months due to comparisons with pandemic-affected months last year. Occupancy: 27.3% (-53.0%) Average daily rate (ADR): CAD112.90 (-25.2%) Revenue per available room (RevPAR): CAD30.86 (-64.8%) “Canada hotel performance remained subdued through th...
U.S. Demand Approaches Pandemic-Lowered Levels of 2020
STR | March 23, 2021
March 23, 2021 - STR’s latest 51-chart demand map through 13 March 2021 shows that most states are moving closer to their levels from the same time last year. Unfortunately, those demand levels from comparable periods in 2020 were lowered substantially by the earliest pandemic lockdowns. A clear majority of states have made solid progress in shrinking the tremendous demand deficits that developed during the worst times of the pandemic. However, current bookings shortfalls from pre-pandemic times remain significant, particularly in a handful of states dominated by the largest urban markets. As noted in our new Market Recovery Monitor, ...
