Using the Labor Data from Hotel Effectiveness to Minimize Costs and Turnover
Adam and Larry Mogelonsky | January 11th, 2023
Four Creatively Destructive Forces for the Hotel Industry
Larry and Adam Mogelonsky | July 13th, 2022
International Tourism To End 2023 Close to 90% of Pre-Pandemic Levels
UNWTO | November 30, 2023
International tourism is on track to recover almost 90% of pre-pandemic levels by the end of this year. According to the latest data from the World Tourism Organization (UNWTO), an estimated 975 million tourists travelled internationally between January and September 2023, an increase of 38% on the same months of 2022. The newest UNWTO World Tourism Barometer also shows: World destinations welcomed 22% more international tourists in the third quarter of 2023 compared to the same period last year, reflecting a strong Northern Hemisphere summer season. International tourist arrivals hit 91% of pre-pandemic levels in the third quarte...
HVS Outlook Fall 2023: Discovering a New Normal
Anne R. Lloyd-Jones | September 18, 2023
By Anne R. Lloyd-Jones, McKenna Luke The strong growth that characterized the last three quarters of 2022 continued through Q1 2023 to complete a full twelve months of recovery. Despite inflation, an active Fed, and persistent recessionary concerns, the lodging industry continued to benefit from robust leisure and “bleisure” demand, supplemented by accelerating group demand. Overall, total demand exceeded 2019 levels beginning in September 2022, and this trend continued through March 2023. Trends through the middle of the year have been mixed. Occupancy levels remained relatively stable to modestly lower from April through August 2...
Amsterdam Hotel Performance Jumped During Eventful August
CoStar Group | September 18, 2023
WASHINGTON – 18 September 2023 – Amsterdam’s hotel industry showed event-driven improvement in monthly performance, according to preliminary August 2023 data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. August 2023 (year-over-year % change): Occupancy: 80.0% (+5.2%) Average daily rate (ADR): EUR180.45 (+18.9%) Revenue per available room (RevPAR): EUR144.40 (+25.0%) The market’s hotel performance was helped by several events, including Pride Amsterdam, the 46th Congress of the European Society of Cardiology (ESC) and the Dutch Grand...
Richmond, Virginia’s RevPAR Rebound and Diverse Lodging Demand
Chelsey Leffet | September 18, 2023
By Chelsey Leffet Richmond’s economy is diverse compared to the greater region. The city has long been a hub for a number of industries, including financial, medical, biotechnology, manufacturing, and transportation. Moreover, the presence of federal and state agencies is a stabilizing factor for the area’s economy. The city’s economic base is supported by major colleges and universities, Dominion Energy, a Federal Reserve Bank, Virginia Commonwealth University Health System, and the VA Bio+Tech Park businesses, just to name a few. Local hotels benefit from the strength of these employers. The Richmond region’s lodging ...
U.S. Travel Spend Returns to Pre-Pandemic Levels, Totaling 4% of All Spend
Affinity Solutions | September 13, 2023
New data from Affinity Solutions indicates US travel spend has returned to pre-pandemic levels WHO: Affinity Solutions, the leading consumer purchase insights company. WHAT: Affinity Solutions’ Consumer Purchase Insights, based on actual credit card, debit card and transaction data, observed from January 2019 to June 2023: • Travel purchases rebound: The percentage of unique travel shoppers totaled 11.7% in 2019, with total spend reaching 4.5%. The category saw significant declines during the COVID-19 pandemic, with total spend falling to 2.5% in 2020. The category bounced back in 2022, with unique shoppers reaching 12% and total s...
The Rebounding San Diego Lodging Market Attracts Investor Interest
Marcus Lee | September 11, 2023
By Marcus Lee Following the COVID-19 pandemic and the significant decline in market performance, hotel demand levels in Greater San Diego[1] have rebounded. Some factors supporting the recovery included the following: Stability within the government and military sector Increased business activity, including growth in the biotechnology and life-sciences sectors, as six San Diego-based companies, including Janssen and Pfizer, worked on the production of the COVID-19 vaccine The strong rebound in leisure travel and the popularity of the region as a tourist destination A quick rebound in passenger traffic at San Diego Internat...
Inbound Travel’s Slow Recovery Is Hurting U.S. Retailers
Andrew Szyf | September 1, 2023
By Aaron Szyf In an age when online shopping has replaced many in-person purchases at diverse U.S. businesses throughout the country, the full return—and continued growth—of inbound travel is critical for numerous U.S. retailers. International visitors to the U.S. love to shop and spend money at stores across the country. In fact, according to NTTO’s Survey of International Travelers (SIAT), more than 80% of overseas travelers reported that they engaged in shopping, more than any other activity. The U.S. was—and remains—the “single most popular destination for shopaholics” according to a recent WTTC report. In an age when on...
Mississippi Gulf Coast: A Record Recovery
Lauren Hock | September 1, 2023
By Lauren Hock 2020: Strength During the Pandemic The COVID-19 pandemic initially posed a major threat to the leisure-heavy Gulf Coast tourism industry, as the market only benefited from one month of Spring Break travel before the stay-at-home orders were issued. However, the state of Mississippi relaxed its COVID-19 restrictions sooner than competitive markets in nearby states, thereby allowing the state’s Secret Coast resorts to capture large amounts of pent-up leisure demand. As a result, occupancy and ADR for July and August nearly reached pre-pandemic levels. The hurricane season can have a negative or positive impact on Gulf Coas...
Recovery and Expansion of the Jersey Shore Hotel Market
Andrew Cameron | August 30, 2023
By Andrew Cameron Known for its beautiful beaches stretching along the Atlantic Ocean, the Jersey Shore comprises four diverse counties, each with its own distinct character and attractions. Featuring all types of lodging, from economy motels to luxury beachfront resorts, the Jersey Shore is a hot spot for many leisure travelers seeking a coastal getaway during the summer months. County Demand Generators and Trends There are many unique lodging options within these counties; however, many of these are family-owned, independent properties that do not submit data to STR. Because of this, the state occupancy tax of 5% on hotel an...
Visiting Loved Ones May Drive Tourism Recovery
PolyU School of Hotel and Tourism Management | August 29, 2023
Whilst many tourists travel to experience new places, cultures and activities, others are visiting friends and relatives (VFR). VFR travel showed remarkable resilience during the COVID-19 pandemic, with many expats and immigrants returning to their countries of origin to weather the storm with loved ones. However, little is known about how pandemic-associated travel constraints were experienced by VFR tourists. Dr Pearl Lin of the School of Hotel and Tourism Management (SHTM) at The Hong Kong Polytechnic University, working with co-researchers from Macao, have constructed an impressive new framework to pinpoint the travel constraints experien...
Dubai Surpasses Pre-Pandemic International Visitation Levels in the First Half of 2023, With 20% Year-on-Year Growth
Dubai's Department of Economy and Tourism (DET) | August 23, 2023
NEW DELHI and DUBAI, UAE, Aug. 23, 2023 -- As per the latest data released by Dubai's Department of Economy and Tourism, it shows that the city is steadily advancing towards its goal of becoming the world's most visited destination. Dubai welcomed 8.55 million international visitors from January to June 2023, exceeding the pre-pandemic figure of 8.36 million tourists in H1 2019. Record H1 performance contributes to the goal of the Dubai Economic Agenda D33, which is to consolidate Dubai's status as one of the world's top three cities. It remains a first-choice destination for global travellers, with the city's hotels outperforming a...
Tucson’s Hotel Industry: Recovered and Evolving
Zabada N. Abouelhana | August 14, 2023
By Zabada N. Abouelhana Current State of the Pima County Hospitality Industry Factors contributing to Tucson’s strong and consistent demand levels during the majority of the last decade have included increased business activity, growth in the healthcare and education sectors, increased airlift to Tucson International Airport, and the continued popularity of the region as a tourist destination. Following the COVID-19 pandemic and the significant decline in market performance, Pima County’s hotel demand levels fully recovered in 2022 and the year-to-date 2023 period. The local inventory of older, economy-oriented properties has been redu...
Global Business Travel Industry Forecast Is for Accelerated Rebound, Spending to Reach $1.8 Trillion by 2027
GBTA | August 14, 2023
Expected business travel spending accelerates due to pent-up demand, return of travel and meetings, improved COVID landscape, stable economic conditions and inflationary factors, according to the latest GBTA Business Travel Index™ Outlook report The global business travel industry has rebounded at a more accelerated rate than expected just a year ago and is now expected to surpass its pre-pandemic spending level of $1.4 trillion in 2024 − and grow to nearly $1.8 trillion by 2027. In 2022, global business travel spending rose 47% to $1.03 trillion, with strong gains continuing and 32% growth expected in 2023. These robust gains were fue...
U.S. Hotel Results for Week Ending 5 August
CoStar Group | August 10, 2023
WASHINGTON – August 10, 2023 – U.S. hotel performance declined from the previous week and showed lower comparisons year over year, according to CoStar’s latest data through 5 August. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. 30 July – 5 August 2023 (percentage change from comparable week in 2022): Occupancy: 68.9% (-1.0%) Average daily rate (ADR): US$158.10 (+2.2%) Revenue per available room (RevPAR): US$108.97 (+1.2%) Among the Top 25 Markets, Boston saw the largest year-over-year increases in occupancy (+12.4% to 84.3%) and RevPAR (+25....
The Current State of Business Travel: Business Traveler and Travel Manager Priorities
GBTA | August 4, 2023
GBTA and Uber for Business Examine the Complex Perspectives Between Business Travelers and Travel Managers in New Report The new age of business travel is intentional, with employees increasingly emphasizing work-life integration and changing dynamics This is according to a new report – “The Current State of Business Travel: Business Traveler and Travel Manager Priorities” – published today by the Global Business Travel Association (GBTA), the world’s largest business travel association, and sponsored by Uber for Business, Uber’s global enterprise platform for managing business rides, meals and deliveries. The report explo...
STR, TE Lift U.S. ADR and RevPAR Forecast; Profit Growth To Be Limited
STR | June 6, 2023
NEW YORK —STR and Tourism Economics upgraded the 2023 U.S. hotel forecast just presented at the 45th Annual NYU International Hospitality Industry Investment Conference. While top-line performance advances, growing operating expenses are projected to limit profit growth over the remainder of the year. The occupancy projection for this year was lowered 0.2% from the previous forecast, but projections for average daily rate (ADR) and revenue per available room (RevPAR) were lifted 1.5% and 1.3%, respectively. For 2024, a 1.4% downgrade in occupancy coupled with a 0.7% lift in ADR meant a RevPAR downgrade of 0.6%. RevPAR, the key t...
U.S. Hotel Owners Eyeing Interest Coverage
Bill Grice and Robert Mandelbaum | June 1, 2023
By Bill Grice, Robert Mandelbaum According to CBRE’s February 2023 Investment Performance forecast, total revenues for the average U.S. hotel returned to 2019 levels in 2022, but the recovery of hotel profits will be delayed until later this year. Hotel franchise and management companies have benefited the most from the ongoing revenue recovery because the fees they receive are frequently earned as a percent of revenue. However, for many hotel owners, along with their lenders and investors, the lag in the return of profits has been a hardship. Afterall, it is the profits of hotel operations that enable owners to pay their debt obli...
China’s Travel & Tourism Sector Forecast to See Swift Post-Pandemic Recovery Despite Prolonged Restrictions
WTTC | May 23, 2023
11.5MN more Travel & Tourism jobs in China this year Guangzhou, China: The World Travel & Tourism Council’s (WTTC) 2023 Economic Impact Research (EIR) today reveals China’s Travel & Tourism sector’s GDP contribution is forecast to grow more than 150% this year. The sector is set to contribute CNY 9.9TN to the economy this year, edging closer to the 2019 pre-pandemic high of CNY 12.27TN. Despite the effects of the pandemic spanning into 2022 in China, WTTC is forecasting for the sector to create almost 11.5MN jobs this year, recovering one in two of the jobs lost to reach 74.7MN. This means around one in 10 workers in...
STR: Amsterdam Hotel ADR and RevPAR Reached Record-Highs in April
STR | May 15, 2023
LONDON – Amsterdam’s hotel industry reported its highest average daily rate (ADR) and revenue per available room (RevPAR) for any month on record, according to preliminary April 2023 data from STR. April 2023 (year-over-year % change) Occupancy: 83.9% (+13.6%) Average daily rate (ADR): EUR214.51 (+30.5%) Revenue per available room (RevPAR): EUR180.07 (+48.2%) April was the first month with the market’s ADR above EUR200. In addition, the occupancy level was Amsterdam’s highest since October 2019. When looking at daily data, Amsterdam’s occupancy peaked on Saturday, 29 April (93.7%), helped by Metallica’s M72 ...
Kansas City’s Flourishing Demand Generators Bolster Hotel Interest
Benjamin Giebler | May 9, 2023
By Benjamin Giebler, Daniel P. McCoy The Kansas City hotel market has rebounded following the impacts of the COVID-19 pandemic, and high levels of leisure demand and the return of convention activity have driven the recovery. Despite rising construction costs, a number of hotel developments are proposed in Kansas City, signaling an optimistic outlook for the market. Events and Developments in Kansas City A number of major events and development projects across Kansas City should boost hotel demand and bolster pricing power in the coming years, as outlined below. In March 2019, construction began on a $1.5-billion project to convert ...
Dallas Hotel Development: A Success Story Amid the Pandemic Recovery
Kathleen Donahue | May 5, 2023
By Kathleen Donahue Within the hotel and lodging sector, Dallas’s popularity with visitors and its ability to attract new businesses have contributed to an unhesitating redemption. In the wake of the COVID-19 pandemic, revenue per available room (RevPAR) in the greater Downtown Dallas area for 2022 rebounded to levels similar to 2019; however, the year-to-date period ending February 2023 shows RevPAR exceeding prior peak levels, as illustrated in the Kalibri Labs data below. Historical Lodging Metrics – Aggregate Downtown and Dallas Airport Submarkets Source: Kalibri Labs As occupancy levels remained below pre-pandemic level...
To Refund or Not to Refund?
PolyU’s School of Hotel and Tourism Management | April 26, 2023
2020 saw unprecedented swathes of holiday cancellations. The year COVID-19 hit was a tough one for hospitality and tourism firms, who were forced to make swift decisions about changes to their refund policies. However, no one could clearly envisage how those crisis-induced changes would impact customer loyalty and trust. In the first study of its kind, Dr Daniel Leung and Ms Christine Seah of the School of Hotel and Tourism Management (SHTM) at The Hong Kong Polytechnic University looked at customer reactions to generous or self-serving refund policy changes, and whether these are shaped further by the magnitude of changes and the format in w...
CHLA Partners With Adesso Capital to Expedite Relief Funds for Hotels
California Hotel & Lodging Association | April 20, 2023
SACRAMENTO, Calif., April 20, 2023-- The California Hotel & Lodging Association, which represents the state's 6,000 hotels and their 238,000 employees, is partnering with Adesso Capital to assist lodging owners with expediting federal relief funds for operating capital, payroll, inventory, or other expenses. With this partnership, California hotels can work with Adesso to file for the Employee Retention Credit (ERC), a tax credit available to businesses that suffered reduced operating capacities or loss of revenue from COVID-19 restrictions. The credit stems from payroll taxes paid in previous years and offers up to $26,000 back per W-...
Portsmouth, NH Shakes Off Pandemic-Era Rust & Shows Promise for Future
Erich Baum | April 20, 2023
By Erich Baum As recently as the 1980s, Portsmouth, New Hampshire, was a rowdy military town with empty storefronts. Construction of the Sheraton Harborside (completed in 1988) required subsidies to pencil out, and another twenty years passed before the Hilton Garden Inn followed, without help from the public. In the years since, the downtown hotel market has continued to mature, adding affiliates of Residence Inn by Marriott in 2010 and Hampton Inn in 2014, followed by an AC by Marriott, which had the bad luck to open in January 2020. Three years and one pandemic later, the AC by Marriott has been absorbed, and the market thri...
