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
HVS Industry Statistics Update – Q4 2019
Jerod S. Byrd | January 3, 2020
By Jerod Byrd Occupancy levels across the U.S. remained generally stable through October 2019, while ADR registered a marginal increase of less than 1%. Research suggests that RevPAR will end 2019 below the 1% mark; this represents a further year-over-year deceleration in RevPAR, which has been the general trend since 2015. The continued entrance of new supply and the slowdown in job growth are the primary factors contributing to the recent trend. Supply is anticipated to continue to increase by nearly 2% in 2020, which will likely outpace demand growth. While RevPAR is projected to remain positive in 2020, the decelerating growth trend is...
HVS Global Hotel Industry Outlook – Ushering in a New Decade
HVS | January 2, 2020
The Global Hotel Industry Outlook report provides expert insights into regional performance for Asia, Canada, Europe, India, Mexico, Middle East, and the United States The Canadian lodging industry has reached peak performance levels—RevPAR and profitability are at all-time highs. However, growth has slowed since the summer, and operating performance appears to be shifting into a lower gear. Growth in the Canadian lodging sector is slowing, but the country remains a sound market for investment. The fundamentals of the industry are healthy, and demand growth is expected to keep pace with supply increases next year, resulting in moderate ...
HVS Market Pulse: Boise, Idaho
Eileen Bosworth | December 26, 2019
By Eileen Bosworth Boise, the Gem State’s capital, awarded the title of Americas’ fastest-growing city by Forbes magazine in 2018,[1] has continued to show robust economic growth in 2019. Key developments include a major announcement in Nampa, expansions occurring at Boise Airport, and a steady events/convention calendar for the upcoming year at the Boise Centre. The greater Treasure Valley is poised for further growth, fueled by the development of the announced Amazon fulfillment center coming to Nampa, a Boise suburb. The facility’s 650,000-square-foot warehouse is slated for completion in the fall of 2020 and is expected to ...
Led by Hilton, Marriott, and Accor, the Middle East Pipeline Is in an Extended Topping-Out Formation
Lodging Econometrics (LE) | December 23, 2019
December 23, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that in the third quarter of 2019, the hotel construction pipeline in the Middle East stands at 625 projects/178,433 rooms. Pipeline project counts are up a slight 2% while room counts show a 1% decrease year-over-year (YOY). It is the seventh consecutive quarter of the total pipeline count exceeding 170,000 rooms. Projects presently under construction are at 344 projects/112,601 rooms while projects scheduled to start construction in the next 12 months have 145 projects/33,031 rooms, the tenth quarter of exceeding 30,000 rooms. Projects in the early plan...
2020 United States Hotel Industry Outlook
Rodney Clough | December 19, 2019
By Rodney Clough The U.S. economy continues to hold strong, showing great resiliency. The overall strength in consumer spending and confidence has benefited the U.S. hotel industry, as well, driving gains in hotel demand, although not at quite a high enough level to balance the new supply that opened in 2019. As such, occupancy is forecast to decline slightly in 2019, while ADR gains will keep RevPAR change in the positive column. Projects that began construction when new supply starts intensified a couple of years ago are now readying to begin welcoming guests in 2020. Demand should continue to grow, but is not expected to keep pace wi...
Luxury Hotels: Elevated Occupancy and Expenses
the Authors | December 16, 2019
By Mark Woodworth and Robert Mandelbaum Despite the relatively high cost of construction and complexity of operations, developers are still attracted to owning and managing luxury hotels. As of August 2019, STR reports that just 0.7 percent of the hotels (2.3% of rooms) in the United States are chain-affiliated luxury hotels. Concurrently, the STR pipeline report shows that 1.2 percent of the properties (2.9% of rooms) either under construction or planned for development meet this criterion. The reasons for this attraction vary: Luxury hotels do achieve premium occupancy and ADR levels, that result in greater than average levels of...
Europe’s Hotel Construction Pipeline Continues Its Expansion Amidst Economic Turbulence
Lodging Econometrics | December 16, 2019
December 16, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that in the third quarter of 2019, Europe’s hotel construction pipeline climbed to record high counts with 1,710 projects and 264,080 rooms, an 18% increase in projects and a 16% increase in rooms year-over-year (YOY). This is the seventh year of pipeline expansion for the region. This growth has been driven primarily by the substantial growth of the major global hotel companies who have acquired the brands of others or created new brands to bolster their existing portfolios throughout the last decade. Projects under construction stand at 830 projects ...
Mainland Europe Hotels Enter Q4 With Positive GOPPAR Growth
HotStats | December 13, 2019
Mainland Europe hoteliers celebrated a positive start to the last quarter of 2019. October marked the second consecutive month—and third month of the year—of growth in profit per available room compared to the same period last year, according to HotStats data. A strong top line drove the 1.2% YOY increase in GOPPAR. In the rooms department, a combination of occupancy (up 1.0 percentage points YOY) and average rate (up 0.1% YOY) led to a 1.5% increase in revenue per available room. This positive trend was replicated across other revenue centres. Specifically, F&B revenue, which achieved 1.0% YOY growth on a per-available-room bas...
In Focus – Skiathos
Manos Tavladorakis | December 13, 2019
By Manos Tavladorakis, Pavlos Papadimitriou Introduction The Sporades are an island complex along the east coast of Central Greece, northeast of the island of Euboea, in the Aegean Sea. They consist of 24 islands, four of which are permanently inhabited, namely Alonnisos, Skiathos, Skopelos and Skyros. Skiathos is the westernmost island in the Sporades group, east of the Pelion peninsula in Magnesia on the mainland, and west of the island of Skopelos. Skiathos Map Source: Greecetravel.com Island of Skiathos The island has an area of 49,90 km² and a permanent population of 6.088 (2011) inhabitants, with the majority living in Skiath...
The Hotel and Resort Macroeconomic Outlook for 2020 and 2021 / MaryJo Finocchiaro
MaryJo Finocchiaro | December 12, 2019
BOCA RATON, Fla., Dec. 12, 2019 - As 2020 rapidly approaches and the hotel industry is wrapping up its 10th consecutive year of growth since the Great Recession, hospitality industry professional MaryJo Finocchiaro, Chief Financial Officer at BRE Hotels & Resorts, offered her opinion on the hotel macroeconomic outlook for the coming year and beyond. "Hotel upcycles typically last for no more than a decade before the industry encounters a period of softening in demand and we're approaching that in the coming year," Finocchiaro said. "Additionally, socioeconomic and geopolitical events have also historically plagued the broader macroeco...
Asia Pacific’s Hotel Construction Pipeline, Excluding China, Continues in a Topping-Out Formation
Lodging Econometrics | December 10, 2019
December 10, 2019 – PORTSMOUTH, NH – In the recently released report from analysts at Lodging Econometrics (LE), Asia Pacific’s total construction pipeline, excluding China, continues in a four-quarter topping out formation with 1,779 projects/389,830 rooms, up 2% and 6% respectively, year-over-year (YOY). The region currently has 958 projects/221,927 rooms under construction. There are 391 projects/78,032 rooms scheduled to start construction in the next 12 months and 430 projects in the early planning stage with room counts at an all-time high of 89,871 rooms. Brand conversions are also at an all-time high. Excluding China, the ...
China’s Hotel Construction Pipeline Has Grown to Record High
Lodging Econometrics (LE) | December 5, 2019
December 05, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that at the end of the third quarter of 2019, China’s total construction pipeline has grown to 3,380 projects/628,972 rooms. Currently, the country has 2,548 projects with 438,797 rooms under construction with projects scheduled to start construction in the next 12 months at 404 projects with 85,026 rooms. Projects in the early planning stage have 428 projects/105,149 rooms. Hotel development continues to thrive despite the continued economic struggles in the region and the on-going trade and tariff disputes with the United States. In the third quarter,...
CBRE Issues U.S. Lodging and 2020-2021 Historic Hotels Forecast at Historic Hotels of America Annual Conference
Historic Hotels of America® | December 4, 2019
Historic Hotels forecast 1.2% advance in market RevPAR is better than the national projection of 0.8% increase for Upper-Upscale and Luxury Hotels. WASHINGTON, DC – December 4, 2019 The outlook for the U.S. lodging industry continues to be less strong than prior years, according to CBRE Hotels Research (CBRE), but Historic Hotels RevPAR will be impacted less and be relatively stronger than other segments of the industry over the next two years. For the sixth consecutive year, CBRE Hotels Research presented a Historic Hotels of America – CBRE two-year forecast at the Historic Hotels of America annual conference. CBRE relies on histor...
U.S. GOPPAR Turns Negative After Recent Gains
HotStats | December 3, 2019
Two consecutive months of profit gain were spoiled as the start of the fourth quarter brought with it a year-over-year downturn in GOPPAR for U.S. hotels. According to HotStats data, GOPPAR in October was down 2.8% versus the same month last year, a symptom of expense creep and a dive in top-line revenue. The negative turn comes on the heels of two months of positive YOY profit gains. Year-to-date GOPPAR is down 0.3% and down 0.7% on a rolling 12 months. RevPAR for the month was down 2.1% YOY, the result of a 1.8% YOY drop in average room rate and a 0.3-percentage-point dip in occupancy. The decrease in rooms revenue, along with a...
Canadian Lodging Outlook Quarterly 2019-Q3
HVS Canada | November 27, 2019
RevPar growth across Canada is flat through the third quarter of 2019. On a provincial level, BC leads the pack with over 3.0% growth with Quebec on its heels at 2.5%. Newfoundland struggles to absorb new supply with a near 6.0% decline and Manitoba's softer market leads to a 3.0% decrease. HVS and STR are pleased to provide you with the quarterly report of the Canadian Lodging Outlook. Each report includes occupancy (occ), average daily rate (ADR), and revenue per available room (RevPAR) for six major markets. Source: STR Source: STR If you would like a detailed hotel performance data for all of Canada, STR offers their Ca...
HVS Market Pulse: Interstate 5 Corridor Tourism Destinations in Oregon
Breanna S. Smith | November 26, 2019
By Breanna S. Smith, Lauren Reynolds Salem Salem, the state capital of Oregon, has not historically been known as a tourism destination. However, in recent years, the city’s local economy has diversified to include manufacturing, distribution, and technology. Thus, with the expansion of economic drivers and the increased population, Salem has entered a period of revitalization in order to offer more retail, dining, and entertainment facilities. This has also increased Salem’s attractiveness as a tourism destination. Furthermore, a vision for the rejuvenation of one the premier attractions in the area, Riverfront Park, is fostering high ...
HVS Market Pulse: Madison, Wisconsin
Dana Floberg | November 25, 2019
By Dana Floberg Madison, the state capital and seat of government for the state of Wisconsin, is home to a diverse economy, including education, healthcare, insurance, government, and technology. Although long home to the University of Wisconsin – Madison and American Family Insurance, it was the growth of Epic Systems Corporation and other healthcare technology companies and services that spurred downtown hotel and residential development over the last ten years. Increased demand for highly educated workers led to greater retention in the market of recent college graduates and improvements in quality of living. Government, Commercial, ...
The Latin America Hotel Construction Pipeline Room Count Up Slightly Quarter Over Quarter
Lodging Econometrics (LE) | November 22, 2019
November 22, 2019 – PORTSMOUTH, NH – In the recent Latin America construction pipeline trend report from Lodging Econometrics (LE), the total construction pipeline stands at 723 projects/131,075 rooms. Pipeline room counts are up slightly at 4%, year-over-year (YOY), and are still near all-time lows. However, the luxury stage at 86 projects/15,366 rooms and upper upscale at 101 projects/21,072 rooms are at the highest levels ever recorded by LE. Projects presently under construction stand at 334 projects/60,720 rooms. Projects scheduled to start construction in the next 12 months stand at 205 projects/35,199 rooms, up 5% and 15% respec...
The Current Impact of Brand PIP Requirements on Hotel Sales
Eric Guerrero | November 22, 2019
By Eric Guerrero The most consistent issue HVS Brokerage & Advisory has encountered during transactions is whether a group is budgeting sufficient capital for prospective asset acquisitions that require PIP renovations. An incorrect estimate means buyer groups must increase their capitalizations or request a price reduction on a dollar-for-dollar basis relative to their cost increases. This ultimately changes many metrics late in acquisition processes and lowers IRRs because any extra capital is drawn entirely from equity and not a blend of equity and debt. Recent observations are detailed below. The lesson is that accurate PIP estimat...
Equity Yield Rates on the Decline
Katy Black | November 21, 2019
By Katy Black and Rodney Clough HVS continually tracks the rates of return on the assets on which we consult. In our most recent review, we found that equity yield rates, on average, have shown a continued trend of decline in the full-service and luxury hotels sector, as well as the lower-tier limited-service sector, with the select-service and upscale limited-service sector showing stability. Equity yield rates were notably lower for full-service and luxury hotels, averaging 16.4% for the year-to-date 2019 period, which is 140 basis points (bps) below the 17.8% most recent peak level recorded in 2017. This decrease was driven largely b...
U.S. Lodging Industry Is Healthy, But Growth Is Slow Through 2021
CBRE Group, Inc. | November 20, 2019
Atlanta – November 20, 2019 – CBRE Hotels Research forecasts that revenue growth will continue to diminish, but the U.S. lodging industry will remain strong through the next two years. As outlined in the December 2019 edition of Hotel Horizons®, U.S. occupancy levels will dip slightly, but remain above 65.5 percent through 2021, 300 basis points greater than the STR long-run average. Concurrently, rooms revenue per available room (RevPAR) is forecast to increase at less than 1 percent per year during the same timeframe. “Throughout the recovery from the Great Recession, we have seen the U.S. lodging industry deviate from economi...
What Happens When Government Per Diems Change?
the Authors | November 19, 2019
By Bram Gallagher Ph.D. and Aman Patel Because federal government employees purchase a significant quantity of hotel rooms, the General Services Administration (GSA) has partnered with Federal Travel Regulation (FTR) compliant accommodations to provide federal travelers with per diem hotel room rates for select high-volume travel destinations in and outside of the Continental United States. These federal guidelines frequently serve to determine the hotel per diem allowances for state and local government travelers as well. Using the federal government per diem as guidance, individual properties and hotel chains set special room rates to...
Marriott Dominates the U.S. Construction Pipeline Followed by Hilton and IHG
Lodging Econometrics (LE) | November 18, 2019
November 18, 2019 – PORTSMOUTH, NH – In the Lodging Econometrics (LE) fall report for 2019, the franchise companies dominating the United States hotel construction pipeline are led by Marriott International with 1,484 projects/196,023 rooms, up 8% by projects and rooms year-over-year (YOY). Next is Hilton Worldwide currently at 1,373 projects/153,408 rooms and InterContinental Hotels Group (IHG) with 960 projects/98,139 rooms. Pipelines are very strong for these companies. Both Marriott and Hilton’s total pipelines are near all-time highs, as are hotels under construction, with Marriott setting a record high. The leading brands in...
UK Q3 Ends on High Note With RevPAR and GOPPAR Gains
November 14, 2019
The third quarter ended on a high note for U.S. hotels, as September profit per room climbed year-over-year, indication that the current cycle still has teeth. GOPPAR in the month was up 1.9% over the same time last year, part of a third quarter that saw profit grow 0.2%, dragged down by a challenging July when GOPPAR decreased 2.0% YOY, according to data from HotStats. September’s bottom-line rise was fueled by a 1.1% YOY jump in RevPAR, led wholly by a 1.4% increase in average room rate. Occupancy for the month was down 0.3 percentage points YOY. The corporate segment led the growth in RevPAR, with a stout 5.1% YOY increase in ra...
