Here’s How COVID-19 Has Altered USALI Financial Reporting
HotStats | June 22nd, 2020
The Middle East’s Ghastly Hotel Numbers in April Could Be the Bottom
HotStats | June 3rd, 2020
Preliminary 2021 Lodging Industry Forecast
Robert Rauch | November 3, 2020
[embed]https://www.youtube.com/watch?v=ehDvSoNCbE4&feature=youtu.be[/embed] By Robert Rauch We have made some assumptions for 2021 – first, Q4 2020 and Q1 2021 will remain flat as corporate business begins to build just as leisure business begins to decline. Second, a stimulus package is imminent right after the election, regardless who wins. The politics of this election, coupled with the divisiveness of the nation, has disrupted everything except for the stock market. Third, gross domestic product will increase about 3% after being down close to 5% in 2020. Our favorite economist, Bernard Baumohl sees a Biden victory as better fo...
What Hotel KPIs Analyze Complete Operational Performance?
HotStats | November 3, 2020
Consulting the right hotel KPIs can help juice a hotel’s bottom line. But just any old metric won’t do. If hoteliers want to uncover financial weak spots, revamp operations and boost profit, it requires complete operational metrics. These KPIs measure efficiency throughout every corner of the hotel. Want to use data to drive more hotel profit? There are a few essential operational hotel KPIs you need to be tracking. Why Operational KPIs Are Important Before examining the most complete operational metrics, it’s worth noting why these KPIs are important in the first place. Unfortunately, it’s a point most of the hotel industr...
U.S. Hotel Profitability Stalled in September
STR | November 3, 2020
BROOMFIELD, Colorado—The U.S. hotel industry reported a third consecutive month with single-digit profitability, but improvements in year-over-year comparisons stalled, according to STR‘s September monthly P&L data release. In a year-over-year comparison with September 2019, the industry reported the following: GOPPAR: -91.7% to US$8.14 TRevPAR: -72.4% to US$68.58 EBITDA PAR: -109.3% to US$-7.03 LPAR (Labor Costs): -62.1% to US$31.94 Previous monthly GOPPAR comparisons came in at -91.3% (August), -93.3% (July), -105.4% (June) and -117.7% (May). “GOPPAR came in a bit higher than August on an absolute basis, but...
Hotel Industry Performance: EHL’s Pulse-Taker Reveals 5 Pain Points
Jochen de Peuter | November 3, 2020
By Jochen de Peuter The year 2020 will be marked in history, surely for the travel and hotel industry. Most hotels suffer from a sudden disruption due to COVID-19 crisis and the consequent travel regulations. Still during these days of crisis, hotel performance and business continuity varies significantly from one hotel to another. What makes a hotel more vulnerable than another? We try to find the answers in this article. EHL Advisory Services has developed an online Hotel Pulse-Taker tool that allows hoteliers to evaluate and benchmark the long-term sustainability of their hotel business based on a multi-dimensional questionnaire. A...
How Hotel Sales Performed in Q3
Daniel H. Lesser | October 29, 2020
Long term opportunistic investors that bet big, at the right basis, and early in the cycle will likely reap tremendous financial rewards. By Daniel H. Lesser Today’s global travel sector, which many characterize as being “on the brink of collapse,” is simply unprecedented. Seven months into a 100-year worldwide pandemic which caused a swift, wide, and deep economic recession has decimated key travel and leisure related industries including airlines, car rentals, cruise lines, ridesharing, and tour operators. While stock markets have rebounded to near record levels, the US lodging industry continues to experience crippling stress...
Marriott, Hilton and IHG Comprise 68% of Projects in U.S. Hotel Construction Pipeline
Lodging Econometrics | October 28, 2020
October 28, 2020 – PORTSMOUTH, NH - In the recently released quarterly United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the franchise companies with the largest construction pipelines at the end of the third quarter of 2020 are Marriott International with 1,390 projects/184,450 rooms, followed by Hilton Worldwide with 1,351 projects/155,626 rooms, and InterContinental Hotels Group (IHG) with 873 projects/89,375 rooms. Combined these three companies account for 68% of the projects and 66% of the rooms in the total pipeline; roughly the same percentage it’s been quarter-over-quarter throughout 2020. Hilt...
U.S. Hotel Profit Stuck in Neutral; Rest of World Switches Gears
HotStats | October 27, 2020
Bouncing back to profitability is proving a Sisyphean task for U.S. hotels. The rest of the world is having a slightly easier path. For the seventh consecutive month, U.S. hotels in September remained in negative gross operating profit per available room territory and at $-9.19, it was a 34% regression from the month prior and a 109.6% year-over-year decrease, according to new data from HotStats. September and into October are typically strong months for U.S. hotels, but the data show that YOY comparison is becoming less and less reliable as the pandemic soldiers on. Dwindling profit appears to be a function of unrelenting expenses, ...
Japan Regional Markets: Recovery Leaders
STR | October 27, 2020
As entry restrictions for international travelers in Japan remain in place, new trends in hotel performance have emerged. Recent data suggests a distinct preference for regional destinations, helped in part by the Japanese government’s “Go to Travel” campaign to promote domestic travel and help boost local businesses. But while regional markets are leading the recovery in the country, levels remain well below pre-pandemic levels with full recovery not expected for years. Regional markets: Where does recovery stand? As we’ve seen in other markets around the globe, regional markets in Japan are leading the recovery as key cities l...
EHL Launches European Hotel Transaction Price Index
René-Ojas Woltering | October 27, 2020
By Dr René-Ojas Woltering EHL’s Real Estate, Finance & Economics Institute presents the first edition of the European Hotel Transaction Price Index. This project aims to contribute to increased transparency in the European hotel industry by publishing the index on an annual basis. This first edition of the index is based on a total of 1247 hotel transactions across Europe between 2007 and 2019. In 2019, European hotel transactions prices increased by 7.7% vs. the prior year on the back of a record transaction volume of EUR 25.6 bn. For the first time, the index clearly surpassed its previous peak from 2007. While the 2019 version o...
At the End of Q3 2020, the Dallas Market Leads the United States Hotel Construction Pipeline
Lodging Econometrics | October 27, 2020
October 27, 2020 – PORTSMOUTH, NH - In the recent report released by Lodging Econometrics (LE), at the close of the third quarter of 2020, the top five U.S. markets with the largest total hotel construction pipelines are Dallas with 154 projects/18,592 rooms; followed by Los Angeles with 150 projects/25,188 rooms; New York City with 144 projects/25,147 rooms; Atlanta with 134 projects/18,670 rooms; and Houston with 109 projects/11,384 rooms. These top five markets account for 15% of the rooms in the total U.S. pipeline. Twenty of the Top 50 markets in the U.S. have more than 50 projects in their hotel construction pipelines. There are...
Miami-Dade County’s Hospitality Industry Recovering but Facing More Than $3 Billion in Losses This Year
Florida International University's Chaplin School of Hospitality & Tourism Management | October 22, 2020
MIAMI (Oct. 21, 2020) – Miami-Dade County hotel and restaurants – the two largest hospitality industries in South Florida – have taken a $3.36 billion dollar hit from COVID-19, according to a new study. The study released today by Florida International University's FIU Chaplin School of Hospitality & Tourism Management, in collaboration with the Greater Miami Convention and Visitor's Bureau (GMCVB), shows that from the time mandatory COVID-19-related business closures took effect in March until the end of August, the direct and indirect effects of the pandemic – including revenue loss, supply chain and business expenditures, op...
STR: U.S. Q3 2020 Hotel Performance
STR | October 21, 2020
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported its lowest third-quarter occupancy level on record, according to Q3 2020 data from STR. Q3 2020 (percentage change from Q3 2019): Occupancy: 48.0% (-32.2%) Average daily rate (ADR): US$101.25 (-24.1%) Revenue per available room (RevPAR): US$48.58 (-48.5%) The absolute occupancy and RevPAR levels were the lowest for any Q3 in STR’s U.S. database. Among the Top 25 Markets, Oahu Island, Hawaii, saw the lowest occupancy level (24.1%), while Norfolk/Virginia Beach, Virginia, experienced the highest occupancy (61.4%). Three additional Top 25 Markets reported occu...
STR: Canada Q3 2020 Hotel Performance
STR | October 21, 2020
HENDERSONVILLE, Tennessee—The Canadian hotel industry saw higher performance from the previous quarter, but at overall low levels, according to Q3 2020 data from STR. Q3 2020 (percentage change from Q3 2019): Occupancy: 38.1% (-49.8%) Average daily rate (ADR): CAD131.65 (-28.0%) Revenue per available room (RevPAR): CAD50.15 (-63.9%) The absolute occupancy level was the lowest for any third quarter in STR’s Canada database, but was more than double the level from Q2 2020 (19.4%). The ADR level was the lowest for a Q3 since 2009. In absolute values, July was Canada’s lowest month of the quarter for occupancy (34.0%) an...
2020 HVS Lodging Tax Report – USA
Thomas Hazinski | October 21, 2020
By Thomas Hazinski, Joseph Hansel While prior HVS annual lodging tax studies have looked back on tax rates and revenues across the United States, this ninth annual Lodging Tax Study also looks forward and assesses the impact of the COVID-19 pandemic. This analysis of 25 major US markets illustrates the depth of the impact on the hospitality industry and projects a pattern of recovery over the next few years. HVS also provides historical data on tax rates and the collection and distribution of revenue from lodging taxes levied in all 50 States and the 150 largest US cities. Introduction The COVID-19 pandemic has dealt a bigger blow to the...
STR: U.S. Hotel Results for Week Ending 10 October
STR | October 15, 2020
HENDERSONVILLE, Tennessee— U.S. hotel weekly occupancy hit 50% for just the second time since the low point of the pandemic, according to the latest data from STR through 10 October. 4-10 October 2020 (percentage change from comparable week in 2019): Occupancy: 50.0% (-29.2%) Average daily rate (ADR): US$97.67 (-25.9%) Revenue per available room (RevPAR): US$48.85 (-47.5%) While a handful of the highest occupancy markets were those in areas affected by natural disasters (i.e. California wildfires), Saturday produced the week’s highest occupancy (65.2%) and ADR (US$110.84), indicating that the leisure and weekend staycatio...
STR: Canada Hotel Results for Week Ending 10 October
STR | October 15, 2020
HENDERSONVILLE, Tennessee—STR data for 4-10 October 2020 showed slightly lower performance from prior weeks for Canada’s hotel industry. 4-10 October 2020 (percentage change from comparable week in 2019): Occupancy: 32.2% (-54.0%) Average daily rate (ADR): CAD115.03 (-27.9%) Revenue per available room (RevPAR): CAD37.09 (-66.8%) Occupancy for previous weeks came in at 34.0% (3 October), 35.6% (26 September), and 37.0% (19 September), respectively. For the week ending with 10 October, British Columbia (41.2%) was the only province to reach or surpass a 40% occupancy level. Among the major markets, Vancouver saw the...
Hospitality Asset Managers Association (HAMA) Release “Fall 2020 Industry Outlook Survey” Results
HAMA | October 14, 2020
BOSTON - The Hospitality Asset Managers Association (“HAMA”) today released the results of a wide-ranging survey of asset managers' thoughts, experiences and forecasts for the upcoming year as the hotel industry continues to deal with the on-going pandemic. With more than 100 participants, topics ranged from the impact of COVID-19 on RevPAR to which major brands were viewed as having most effectively addressed guest health and safety concerns. The survey also went into depth on the current and future financial status of participant hotels and made predictions on when the recovery will proceed. The survey was conducted in preparation f...
STR: U.S. Leads in Hotel Openings During Pandemic
STR | October 13, 2020
HENDERSONVILLE, Tennessee—The U.S. opened more hotels and rooms than any country between the beginning of March and end of September, according to global pipeline data from STR. At the same time, the country has shown significant growth in project deferrals and abandonments. As of 1 October, the U.S. opened 521 properties accounting for 55,395 rooms over the seven-month period. Five additional countries have opened more than 2,000 rooms throughout the course of the pandemic. 1. U.S. (55,395 rooms) 2. China (23,470 rooms) 3. Japan (16,304 rooms) 4. Germany (9,027 rooms) 5. Canada (2,748 rooms) 6. United Kingdom (2,481 ro...
IHG® Hotels & Resorts Reveals New Data About the US Summer Vacation in 2020
IHG | October 12, 2020
‘Staycation’ was undoubtedly the travel buzzword of 2020. With travel restrictions limiting people jetting off to far-flung destinations for some of the summer months this year, Americans looked to explore what was on their very own doorstep more so than ever before. IHG Hotels & Resorts, which includes brands such as Holiday Inn, InterContinental, Crowne Plaza, Staybridge Suites and Kimpton, reveals new data about the 2020 U.S. summer staycation and the impact on hotel bookings. Brian Hicks, SVP Commercial and Revenue Management, IHG Hotels & Resorts commented on the findings: “People are as eager as ever to travel, but th...
STR: U.S. Hotel Results for Week Ending 3 October
STR | October 8, 2020
HENDERSONVILLE, Tennessee—U.S. hotel occupancy decreased slightly from the previous week, according to the latest data from STR through 3 October. 27 September through 3 October 2020 (percentage change from comparable week in 2019): Occupancy: 47.9% (-29.6%) Average daily rate (ADR): US$95.63 (-26.3%) Revenue per available room (RevPAR): US$45.80 (-48.1%) Year-over-year declines were less pronounced compared with previous weeks due to the Rosh Hashanah impact on the hotel calendar in 2019. Most of the markets with the highest occupancy levels were once again those in areas with displaced residents from natural disasters. Am...
STR: Canada Hotel Results for Week Ending 3 October
STR | October 8, 2020
HENDERSONVILLE, Tennessee—STR data for 27 September through 3 October 2020 showed slightly lower performance from prior weeks for Canada’s hotel industry. In comparison with the week of 29 September through 5 October 2019, the industry reported the following: Occupancy: 34.0% (-52.8%) Average daily rate (ADR): CAD117.75 (-28.9%) Revenue per available room (RevPAR): CAD40.05 (-66.4%) Occupancy for previous weeks came in at 35.6% (26 September), 37.0% (19 September) and 39.8% (12 September), respectively. For the week ending with 3 October, British Columbia (43.2%) was the only province to reach or surpass a 40% occupanc...
Baird/STR Hotel Stock Index Drops 7.1% in September
Baird | October 7, 2020
HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index dropped 7.1% in September to a level of 3,329. Year to date through the first nine months of 2020, the stock index was down 36.8%. “Hotel stocks declined in September, which mirrored the broader market’s pullback,” said Michael Bellisario, senior hotel research analyst and director at Baird. “After significant absolute and relative gains in August, the September declines were modest in comparison. Investors have become more focused on a potentially slower economic growth outlook, an expected rise in coronavirus case counts as colder weather approaches, and t...
COVID-19’s Impact on the Denver Lodging Market
HVS | October 7, 2020
Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, Metro Denver’s occupancy fell roughly eight points from 65% in 2008 to 57% in 2009; this year, we forecast occupancy to drop from the 2019 benchmark of roughly 74% to 42%, reflecting a 32-point correction. Average rate declined from $106 in 2008 to $93 in 2009, a 12% drop; this year, we forecast ADR to fall 30% ($135 to $96). Denver – 2020-2023 Forecast Source: STR (Historical Years) and HVS (Forecast) Major factors contributing to our forecast are summarized as follo...
Highgate Assumes Management of Trust Hospitality Portfolio of 22 Lifestyle Properties
Highgate | October 5, 2020
New York, NY – Oct. 5, 2020 – Leading real estate investment and hospitality management company Highgate announced today it has assumed management of Trust Hospitality’s portfolio assets, comprised of 22 hotels and resorts – approximately 3,100 rooms – throughout the U.S., Caribbean and Latin America. The portfolio includes a combination of existing and under development hotels and resorts. This transaction increases Highgate’s footprint in the Caribbean and Latin America, and will enable the company to be the leading hotel manager in the region. Trust CEO Richard Millard and Partner/Head of Development Michael Registe...
