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
Canada’s Hotel Construction Pipeline Ascends to a Record High With a 28% Increase in Rooms Year-Over-Year
Lodging Econometrics | November 13, 2019
November 13, 2019 – PORTSMOUTH, NH – At the close of the third quarter of 2019, analysts at Lodging Econometrics (LE) report that the total construction pipeline in Canada soared to an all-time high with 289 projects/38,453 rooms. Construction pipeline projects are up 17% and rooms are up a remarkable 28% year-over-year (YOY). Currently, there are 85 projects/10,337 rooms under construction. Projects scheduled to start construction in the next 12 months have experienced an extraordinary 47% increase in both projects and rooms, YOY, standing at a record high of 125 projects/14,574 rooms. Projects in the early planning stage stand at 79 ...
Market Snapshot: Asia Pacific 2019
Hok Yean CHEE | November 11, 2019
By Hok Yean CHEE Transactions in Asia Pacific In 2018, transaction activity in Asia Pacific continued its strong momentum from 2017 and achieved transaction volume of approximately USD12.8 billion worth of hospitality assets, indicating a 26.6% increase year-on-year. From 4Q2018 to 3Q2019, transaction activity in Asia Pacific has slowed down. Despite the reduced transaction activity, growing interest in hospitality assets continue to be observed in regions such as Australia & New Zealand, India & Sri Lanka and specific markets in the North Asia and South-East Asia regions. For some markets, the slowdown can be attributed to vario...
U.S. Hotel Construction Pipeline Continues Its Year-Over-Year Growth
Lodging Econometrics (LE) | November 11, 2019
November 11, 2019 – PORTSMOUTH, NH – In its fall report, buoyed by a steady consumer-driven economy, analysts at Lodging Econometrics (LE) reported that the total U.S. construction pipeline stood at 5,704 projects/700,496 rooms, up 6% by projects and 8% by rooms year-over-year (YOY). Pipeline totals continue to climb closer to the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008, and are just 179 projects shy. In its eighth consecutive quarter of growth, projects currently under construction stand at 1,729 projects/235,278 rooms, the highest count recorded since the second quarter of 2008. Projects sc...
New York City Among the Top Hotel Construction Pipelines in the United States
Lodging Econometrics (LE) | November 8, 2019
November 8, 2019 – PORTSMOUTH, NH – In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on New York City, LE states that New York City has a total of 155 projects/26,605 rooms in the construction pipeline, one of the top three largest pipelines in the U.S. Of this total, hotels presently under construction are at 102 projects/17,504 rooms, projects scheduled to start construction in the next 12 months are at 23 projects/3,637 rooms, and those in early planning are at 30 projects/5,464 rooms. The three market tracts with the largest hotel construction pipelines are: Midtown South, the area between 24th and 36...
CEO Compensation in the Shrinking Casino Industry
Keith Kefgen | November 6, 2019
(November 6, 2019) - As the list of public gaming CEOs continues to shrink due to consolidation and the growing competition of technology-based options, "gaming" in its broadest sense will force any entertainment organization to consider a multi-segment strategy (think the NFL, FanDuel, DraftKings, and Jay-Z). The casino industry will be no different, as younger adults focus on their mobile device and skills-based gambling. Thus, the annual AETHOS list of public gaming CEOs has dropped to its lowest level since 2002, when AETHOS started to track their pay. Today, only 12 CEOs run traditional casino operations. Now in its 13th year of stud...
Discovering Possible Off-The-Radar Investment Markets
Drew Noecker | November 4, 2019
By Drew Noecker At the 2019 Phoenix Lodging Conference, the HVS Team heard muted optimism and a view that growth in the next 24 months may vary widely across markets. We would encourage owners to investigate the sometimes overlooked top 50 MSAs that still could experience value appreciation in those 24 months. Markets for Consideration Source: HVS Research and the HVI HVS reviewed multiple metrics to identify select top 50 MSAs that might offer good value to hotel investors. While these markets don’t necessarily have the cachet of, say, New York or San Francisco, they do offer potential growth and may not carry the competitive sup...
Hotel Data Digest: Seasonality vs. Moving Average
HotStats | November 4, 2019
Tracking the evolution of key performance indicators (KPIs) over time allows hoteliers to identify meaningful trends, create forecasts and budgets and assess the results of different strategies. To perform this kind of analysis, data has to be recorded within consistent time intervals and in chronological order. This is known as a time series. For example, daily occupancy for the past month is a time series: data (occupancy) is recorded within a consistent time interval (daily) and is chronologically displayed. There are many ways of looking at a time series, depending on the kind of insights you want to extract from it. In this article, w...
HVS Market Pulse: Reno, Nevada
Desiree Flanary | October 31, 2019
My first article about Reno was in 2008, just after I moved to the market. As I was falling in love with this unique city that was struggling from the Great Recession, local officials were working to diversify its economic base away from gaming. Occupancy and average rate (ADR) in the market not only struggled because of the decline in demand associated with the Great Recession, but this was further exacerbated by the addition of new supply continuing to enter the market after the recession had hit. In 2017, I wrote an updated article on the market focused on the growth that had occurred while the market recovered from the Great Recession and...
Q3 2019 U.S. Lodging Market Update
Daniel Lesser | October 30, 2019
By Daniel Lesser While the U.S. continues to be in the midst of its longest uninterrupted economic expansion in modern history, slowing growth metrics along with abundant geopolitical uncertainties are heightening perceived risk of impending recession. Concerns include: • U.S. GDP growth is decelerating and during the near-term increases are anticipated to remain modest; • The Conference Board’s consumer confidence index fell to 125.1 in September, down from a revised August 2019 reading of 134.2; • Trade with Canada and Mexico falls into the same uncertainty now gripping U.S. relations with China and Europe. A failure of ...
U.S. Hotel Industry Resilient, GOPPAR Up in September
HotStats | October 29, 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...
Q3 Proves Tough for UK’s Regional Hotels as RevPAR Falls Again, Reveals Latest Hotel Market Tracker
HVS | October 28, 2019
28 October 2019, London: Trading in Q3 for UK hotels has again showed a considerable contrast between those in London compared with the Provinces, according to the latest UK Hotel Market Tracker: Q3 2019, produced by HVS London, AlixPartners and STR. With London properties seeing rate-driven RevPAR [rooms revenue per available room*] growth of 5.1% to £145.97 year-on-year, hotels in the regions saw a decline of 1.3% to £63.42, the third consecutive quarter of decline. In London performance was largely boosted by strong room rates, up 5.3% year-on-year to an average of £165.69, despite a slight fall in occupancy of 0.3% to 88.1%. Perf...
HVS Market Pulse: Colorado Springs, Colorado
Katy Black | October 24, 2019
By Katy Black There are 15 full-service hotels in Colorado Springs representing nearly 3,900 of the 10,550 total hotel rooms in this market. Interestingly, there are three full-service hotels that are branded under the Wyndham Hotels & Resorts parent company. The Mining Exchange Hotel opened in 2012 as a Wyndham Grand, The Antlers Hotel affiliated with Wyndham in 2016 after de-flagging from a Hilton, and the Cheyenne Mountain Resort joined Wyndham under the Dolce Hotels & Resorts affiliation in September 2017. Combined, these three hotels have over 700 rooms, which is only about 70 rooms shy of The Broadmoor. Hyatt, Hilton, Marriot...
Per Diem Rates: Current & Historical Trends
Chelsey Leffet | October 17, 2019
By Chelsey Leffet Government per diem rates are set for a number of locations, many applying to multiple regions or localities in each state. A per diem rate is made up of three components: a lodging allowance, meals allowance, and incidental expense allowance[1]; however, this article and the data presented below focus solely on the lodging allowance. The per diem lodging rates, which provide a maximum amount that a federal traveler can reimburse, are based on the costs of mid-priced hotels and are set annually by the U.S. General Services Administration (GSA). The following article examines the per diem trends of the top 24 lodging marke...
3 Reasons You Can’t Trust RevPAR
HotStats | October 14, 2019
Revenue per available room, or RevPAR, has historically been the most widely used metric for benchmarking performance in the hospitality industry. Its success as a key performance indicator or KPI is the result of its efficiency and simplicity. RevPAR is efficient because it combines the results of both occupancy and average rate into one number. And it’s simple, because all you need to calculate it is occupancy and average rate: RevPAR = Occupancy * ADR But its simplicity and straightforwardness conceal its faults and limitations. Here are three reasons you can’t put all your eggs in the RevPAR basket: 1. RevPAR does not measure...
Travel Trends Index: Strength of Domestic Leisure Travel Carries Weaker Business, International Inbound Travel
U.S. Travel Association | October 8, 2019
WASHINGTON (October 8, 2019) — Travel to and within the United States grew 3% year-over-year in August, according to the U.S. Travel Association's latest Travel Trends Index (TTI), marking the industry's 116th straight month of growth. The bright spot in the TTI was the strength of the domestic leisure travel segment, which expanded 4% while vacation intentions reached their highest level in 2019 thus far. However, forward-looking bookings and search data indicate there may be uncertainty on the horizon for the domestic segment: the Leading Travel Index (LTI), the TTI's predictive element, projects domestic travel growth will soften to j...
2019 HVS Lodging Tax Report – USA
Thomas A. Hazinski | October 7, 2019
By Thomas A. Hazinski , Joseph Hansel State and local governments charge lodging taxes on the short-term stays at hotels, motels, bed-and-breakfasts, and other lodging accommodations. The rate of lodging taxes across the United States varies at a state, county, and city-level. Though the name of the tax may vary—lodging tax, transient tax, occupancy tax—the imposition of lodging taxes is a crucial funding source of revenue for a number of state and local governments. For example, average state lodging tax revenue grew at a rate of 2.92% from 2017 to 2018. Tax revenue from lodging comes from ad valorem lodging taxes and excise taxe...
Year of Profit Growth Continues at U.S. Hotels
HotStats | October 1, 2019
Key Takeaways: While a large portion of the global industry is having trouble driving profit, U.S. hotels are hitting a purple patch. U.S. hoteliers are doing a strong job of flexing cost, as expenses, including payroll, continue to rise on a YOY basis. It’s not all peachy. New York, for instance, has had only one month so far this year of YOY profit growth—June, at only 0.6% growth. GOPPAR increased 1.4% year-over year in August, matching RevPAR growth, which also clocked in with a positive 1.4% gain, according to monthly data from HotStats. August continued a streak of GOPPAR growth in 2019, with the only nega...
The Global Construction Pipeline Ascends to New Record Highs
Lodging Econometrics (LE) | September 27, 2019
September 27, 2019 – PORTSMOUTH, NH - Lodging Econometrics (LE) recently compiled construction pipeline counts for every country and market around the world. Their analysts state that the total global construction pipeline ascended to a record high of 14,051 projects/2,327,923 rooms, a 9% increase in projects and an 8% increase in rooms year-over-year (YOY). The report summarizes development in 176 countries worldwide. With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown. The fa...
2019 in the Caribbean Region: ‘Cause Every Little Thing Gonna Be Alright
Kristina M. D'Amico | September 26, 2019
By Kristina M. D'Amico Strong Year-to-Date Performance, Bolstered by ADR Increases The Caribbean islands have long been established as a popular travel destination for U.S., Canadian, and European travelers. Tourism to the islands is highly dependent upon the availability of transportation. Cruise ships and airlines are responsible for the vast majority of visitor arrivals to the islands, with air service the method of transportation for almost all of the tourists requiring overnight accommodations. Consequently, the availability and caliber of air service to the local airports has had a material influence on the level of tourism to ...
Taking the Pulse of the Nation’s Largest Hotel Markets
Rodney Clough | September 25, 2019
By Rodney Clough On recent visits to Las Vegas to host an internal training meeting at Mandalay Bay and then to complete a consulting engagement at a suburban limited-service hotel, I found the city to be extremely active. This was reflective in the statistics for the hotel market, with citywide occupancy approaching 90%, according to the Las Vegas Convention and Visitors Association. There were no discernable signs of the city’s heightened activity slowing down, yet. With all this talk of a pending economic slowdown and lackluster RevPAR growth nationwide, I thought I would check with some of my firm’s C&V leaders to see what they...
U.S. Hotel Development Cost Survey 2018/19
Luigi Major | September 23, 2019
By Luigi Major In 2018/19, the national lodging market continued to climb to new heights, albeit at a more moderate pace than in previous years. In 2018, hotels in the United States operated at the highest occupancy and average rates ever recorded, with both metrics registering additional growth during the year-to-date July 2019 period. While the pace of new hotel development and the entrance of new supply has remained tamed when compared with the previous cycle, this pace has been accelerating, as evidence by increases in supply in 2018 and 2019, as well as the number of hotel rooms under construction as of mid-year 2019. Through year-end...
HVS Market Pulse: Columbia, South Carolina
McKenna Luke | September 20, 2019
By McKenna Luke Columbia, the state capital of South Carolina and the home of the University of South Carolina (USC), is a growing metroplex. Not only is the city expanding with notably annual population growth, the MSA population is expected to increase from roughly 800,000 to over 1,200,000 by 2045. The recent and current growth within the hospitality industry has been driven by growing population, visitation, new and expanding companies, and a pro-business environment. Fort Jackson remains a strong presence in the market, and over 100,000 family members attend basic-training graduation annually; several hoteliers in multiple submarkets ...
Mixed-Use Is the Key to Funding Hotel Development in Africa
JLL | September 17, 2019
JOHANNESBURG, South Africa, September 17, 2019- A new report from JLL (www.JLL.com), the world’s largest professional services firm specializing in real estate, has revealed that people seeking to finance a new hotel project in Africa will be much more successful if their hotel is part of a mixed-use development. JLL’s research into global property transactions reveals that in the first half of 2019, there was a 42% increase in the value of mixed-use property transactions, whereas there was a decline in other sectors, with Office down 4%, Industrial down 6%, Retail down 20%, Hotel down 18% and alternatives down 40%. Xander Nijnens, ...
The Middle East Hotel Construction Pipeline Project Count at an All-Time High in the Second Quarter of 2019
Lodging Econometrics | September 11, 2019
The Middle East hotel construction pipeline stands at 640 projects/181,890 rooms, up 6% and 4%, respectively, year-over-year (YOY) September 11, 2019 – PORTSMOUTH, NH – In a recent report by analysts at Lodging Econometrics (LE), the Middle East hotel construction pipeline stands at 640 projects/181,890 rooms, up 6% and 4%, respectively, year-over-year (YOY). This is an all-time high for projects in the region. Projects presently under construction are at 345 projects/111,257 rooms. Projects scheduled to start construction in the next 12 months are at 160 projects/39,373 rooms, and projects in the early planning stage are at 135 pr...
