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
DCF Is the Most Appropriate Method of Hotel Valuations, Especially During the COVID Era
Akash Datta | October 5, 2020
By Akash Datta, Dipti Mohan In a market like India, where land most often than not is mis-appropriately valued resulting in exaggerated project costs and hotel transactions are limited in number, the only viable methodology that remains relevant especially in the current uncertain & volatile market scenario is that of Discounted Cash Flows (DCF). Moreover, the current pandemic has had an unprecedented impact on the hospitality sector, with hotels being temporarily closed and the sector witnessing all-time low performance metrics, by the virtue of which, assessing the value of a hotel on current income fails miserably. Hotels are ext...
STR: U.S. Hotel Results for Week Ending 26 September
STR | October 1, 2020
HENDERSONVILLE, Tennessee—U.S. hotel occupancy remained nearly flat from the previous week, according to the latest data from STR through 26 September. 20-26 September 2020 (percentage change from comparable week in 2019): Occupancy: 48.7% (-31.5%) Average daily rate (ADR): US$96.38 (-29.6%) Revenue per available room (RevPAR): US$46.96 (-51.7%) Most of the markets with the highest occupancy levels were those in areas with displaced residents from natural disasters. Affected by Hurricane Sally, Mobile, Alabama, reported the week’s highest occupancy level at 74.9%. Amid continued wildfires, California South/Central was nex...
STR: Canada Hotel Results for Week Ending 26 September
STR | October 1, 2020
HENDERSONVILLE, Tennessee—STR data for 20-26 September 2020 showed slightly lower performance from prior weeks for Canada’s hotel industry. Year-over-year declines also worsened. In comparison with the week of 22-28 September 2019, the industry reported the following: Occupancy: 35.6% (-53.7%) Average daily rate (ADR): CAD119.39 (-32.8%) Revenue per available room (RevPAR): CAD42.46 (-68.9%) Occupancy for previous weeks came in at 37.0% (19 September), 39.8% (12 September) and 41.9% (5 September), respectively For the week ending with 26 September, British Columbia (44.0%) was the only province to reach or surpass a 40...
Second Wave Brings Uncertainty to Business Travel Recovery
The Global Business Travel Association | September 25, 2020
Attention turns to 2021 as two-thirds of companies plan return to in-person events Alexandria, VA (September 24, 2020) – The majority of Global Business Travel Association (GBTA) companies expect their employees to return to in-person events in 2021. Almost half (45%) expect attendance to resume in the first half of the year, according to the latest poll conducted between September 15-19, 2020, by GBTA, with an additional 25% expecting a return to in-person events in the second half of 2021. While most do not expect their company to host in-person meetings, events or conferences in 2020, there is growing optimism for 2021, with 37% ex...
U.S. Hotel Profitability Improvements Slow in August
STR | September 25, 2020
BROOMFIELD, Colorado—Improvements in U.S. hotel profitability metrics slowed in August, according to STR‘s latest monthly P&L data release. In a year-over-year comparison with August 2019, the industry reported the following: GOPPAR: -91.3% to US$6.90 TRevPAR: -74.5% to US$55.72 EBITDA PAR: -112.1% to US$-6.96 LPAR (Labor Costs): -64.4% to US$27.19 “Overall profitability (GOPPAR) remained in positive territory for a second straight month, but the incremental improvements we had seen over the previous two months slowed,” said Raquel Ortiz, STR’s assistant director of financial performance. “Even though Augus...
U.S. Only Region to Not Return to Profitability; China Hits 2019 Levels
HotStats | September 25, 2020
Hoteliers outside the U.S. have cause for muffled celebration: Europe, Asia-Pacific and the Middle East all showed positive gross operating profit per available room (GOPPAR) in August. The U.S. now becomes the only region that has yet to turn a positive month of profit since the COVID-19 pandemic took hold. Meanwhile, China is showing a true V-shaped recovery in profit, having matched December 2019 GOPPAR in August. One thing is sure, the global hospitality industry will be tested in the months to come, as the summer months give way to the fall and winter, where a dip in travel, particularly on the leisure side, is typical. This, compound...
The Impact of COVID-19 on the European Hotel Sector
Russell Kett | September 24, 2020
By Russell Kett There is no doubt that the COVID-19 pandemic has had a most dramatic effect on the hotel business throughout Europe and words like ‘unprecedented’ and ‘unique’ are used liberally to describe the situation. Performance data from STR for the first half of the year compared with 2019 show how dramatic the effect on the hotel sector has been with RevPAR since March 2020 nose-diving, with many hotels closing their doors. Figure 1 shows the performance of those hotels which remained open during this period. (Adding in those hotels achieving zero RevPAR would make the graph look worse still.) Figure 1: European Hotels R...
STR: U.S. Hotel Results for Week Ending 19 September
STR | September 24, 2020
HENDERSONVILLE, Tennessee—U.S. hotel occupancy was nearly flat from the previous week, according to the latest data from STR. 13-19 September 2020 (percentage change from comparable week in 2019): Occupancy: 48.6% (-31.9%) Average daily rate (ADR): US$95.84 (-28.9%) Revenue per available room (RevPAR): US$46.54 (-51.6%) Demand rose slightly (+0.3%), and the highest occupancy markets were once again those housing displaced residents from Hurricane Laura and western wildfires, with California South/Central showing the highest level in the metric (74.7%). The Louisiana South (72.8%) and Louisiana North (72.3%) markets were als...
STR: Canada Hotel Results for Week Ending 19 September
STR | September 24, 2020
HENDERSONVILLE, Tennessee—STR data for 13-19 September 2020 showed slightly lower performance from prior weeks for Canada’s hotel industry. Year-over-year declines also worsened. In comparison with the week of 15-21 September 2019, the industry reported the following: Occupancy: 37.0% (-52.8%) Average daily rate (ADR): CAD121.94 (-32.2%) Revenue per available room (RevPAR): CAD45.17 (-68.0%) Occupancy for previous weeks came in at 39.8%, 41.9% and 42.1%, respectively For the week ending with 19 September, British Columbia (46.5%) was the only province to reach or surpass a 40% occupancy level. Among the major market...
Small Businesses in Grave Peril Unless Washington Acts
The U.S. Travel Association | September 23, 2020
WASHINGTON (September 23, 2020)—More than half (55%) of all small travel businesses in the U.S. are at risk of either taking longer than six months to recover or never recovering at all, according to data released Wednesday by the U.S. Travel Association. The numbers, prepared for U.S. Travel by the data analytics firm Tourism Economics, indicate an extreme threat to travel-supported jobs, which employed one in 10 Americans pre-pandemic. A massive 95% of all accommodation and food service employment is found within small and medium-size businesses, as defined by the U.S. Small Business Administration, with only 5% of those sectors’ emp...
Border Uncertainty Could Cripple Queensland’s Economic Rebound Warns Accor
Accor | September 22, 2020
With estimates that border closures are costing Queensland $17 million* a day, Accor Pacific, Australia’s largest hotel group, is calling for urgent action to save the ailing state. Simon McGrath, Chief Operating Officer for Accor Pacific, said: “The current border restrictions mean that Queensland will miss out on the summer dollar, a crucial period for local businesses, the economy and jobs. Now is when people are booking visits for the next 3 to 6 months and if they don’t have certainty that Queensland will be open, then Queensland will miss the surge in travel and fall behind other states. Queensland could go from leadershi...
Hotel Equities Enter Strategic Alliance With The Witness Group, Assumes Management of 36-Hotel Portfolio
Hotel Equities | September 22, 2020
ATLANTA — (September 22, 2020) — Hotel ownership, management and development firm, Hotel Equities (“HE”), and its global private equity affiliate, Virtua Partners (“Virtua”), announced they have entered into a strategic alliance with The Witness Group (“TWG”), a premier hospitality development and investment group. Hotel Equities transitioned and assumed operations of The Witness Group’s portfolio of 36 hotels on September 1. Brands represented are Marriott, Hilton, IHG and Hyatt. Discussions on the strategic alliance began in early 2020. After identifying immediate synergy in company culture, values and vision, the con...
STR: U.S. Hotel Performance for August 2020
STR | September 21, 2020
HENDERSONVILLE, Tennessee—The U.S. hotel industry showed slightly higher performance from the month prior, but at overall low levels during August 2020, according to data from STR. In a year-over-year comparison with August 2019, the industry recorded the following: Occupancy: -31.7% to 48.6% Average daily rate (ADR): -22.8% to US$102.46 Revenue per available room (RevPAR): -47.3% to US$49.83 The absolute occupancy level was the lowest for any August on record in the U.S., but all three key performance metrics were up from July levels. Recent September weekly data shows occupancy just below 50% due to a slight decrease in d...
In Jittery Times, This Asset Class Is Steady
HotStats | September 21, 2020
It’s U.S. Open week. The top golfers in the world convene just outside New York City at Winged Foot Golf Club (no fans allowed) where they will compete for a major title and all the prestige and money that comes with it. Unlike some other golf tournaments, the U.S. Open is historically the most difficult. The rough is thicker. The greens are slicker. The stakes are higher. And the winning score—frequently above par—reflects that. The U.S. Open is a grind. The flashier, familiar, famous player is not assured victory. Case in point, last year’s victor, Gary Woodland, was ranked 25th in the world when he won and, unlike one Tiger W...
Can Hotels Cement Their Place in the New Remote Working Culture?
JLL | September 17, 2020
Hotels have long been hives of remote working, from business travellers sending emails after meetings nearby to more recently, coworking spaces in communal areas attracting a new generation of digital nomads. Now, with fewer guests staying overnight, some hotel groups are homing in on remote workers by offering bedrooms as makeshift daytime offices. The work-from-hotel model, driven by major operators such as Accor, targets local workers seeking out a better balance between work and home life – or simply a change of scenery after months of working from home. In the Netherlands, a range of hotel rooms are available through one websi...
STR: U.S. Hotel Results for Week Ending 12 September
STR | September 17, 2020
HENDERSONVILLE, Tennessee—U.S. hotel occupancy decreased slightly from the previous week, according to the latest data from STR. 6-12 September 2020 (percentage change from comparable week in 2019): Occupancy: 48.5% (-30.2%) Average daily rate (ADR): US$98.99 (-25.5%) Revenue per available room (RevPAR): US$47.96 (-48.1%) Occupancy for the week prior was above 49.0%, lifted by Labor Day Weekend. For the week ending with 12 September, demand was 1.6% less, at 17.7 million room nights sold. The highest occupancy markets were those housing displaced residents from Hurricane Laura and western wildfires, with Louisiana North (77...
STR: Canada Hotel Results for Week Ending 12 September
STR | September 17, 2020
HENDERSONVILLE, Tennessee—STR data for 6-12 September 2020 showed slightly lower performance from prior weeks for Canada’s hotel industry. Year-over-year declines, while improved, also remain significant. In comparison with the week of 8-14 September 2019, the industry reported the following: Occupancy: -48.0% to 39.8% Average daily rate (ADR): -32.3% to CAD123.89 Revenue per available room (RevPAR): -64.8% to CAD49.32 Occupancy for previous weeks came in at 41.9%, 42.1% and 42.9%, respectively For the week ending with 12 September, British Columbia (50.9%) was the only province to reach or surpass a 50% occupancy leve...
Hotel Investors Across Europe Have ‘Wall of Money’ and Confidence in the Sector’s Ability to Recover, Hears Webinar
HVS | September 17, 2020
17 September 2020, London: A webinar held this week [15th September] hosted by HVS, AlixPartners, Bird & Bird and EP Magazine, heard a distinguished panel of experts debate the impact of the global pandemic on hotel values across Europe and whether it had in fact, created an investment opportunity. HVS London chairman Russell Kett kicked off the session by noting the improved performance of hotels in July, compared with April of this year, despite many properties remaining closed. “Things have started to move in those properties that have re-opened,” he said, “business is starting to come back. These are good signs with strong in...
5 Key Points on Europe Hotel Performance, 10 September
STR | September 15, 2020
Knowing you might not have time to watch our full webinars, we are pleased to continue our series of COVID-19 webinar summaries. In this latest edition, we talk performance in Europe as well as our latest forecast updates. How does Europe compare to other regions in the recovery cycle? China hit a 69.4% occupancy level on 18 August, the highest level during the time of the pandemic. Since that date, however, China has started to fall back a bit. During the first weekend of September (4-6 September), the market posted 57.6%, 57.5% and 57.9% occupancy levels, respectively. Europe saw its lowest occupancy level during the firs...
International Tourist Numbers Down 65% in First Half of 2020, UNWTO Reports
UNWTO | September 15, 2020
International tourist arrivals plunged 93% in June when compared to 2019, with the latest data from the World Tourism Organization showing the severe impact COVID-19 has had on the sector. According to the new issue of the World Tourism Barometer from the United Nations specialized agency, international tourist arrivals dropped by 65% during the first half of the year. This represents an unprecedented decrease, as countries around the world closed their borders and introduced travel restrictions in response to the pandemic. Over recent weeks, a growing number of destinations have started to open up again to international tourists. UNWTO repo...
More Than 50% of Global Destinations Are Easing Travel Restrictions – But Caution Remains
The World Tourism Organization (UNWTO) | September 10, 2020
A majority of destinations around the world (53%) have now started easing travel restrictions introduced in response to the COVID-19 pandemic. Though many remain cautious in view of the development of the pandemic, the seventh edition of the UNWTO “COVID-19 Related Travel Restrictions: A Global Review for Tourism” confirms the ongoing trend towards the gradual restart of tourism. Analysing restrictions up to 1 September, the research carried out by the United Nations specialized agency for tourism found that a total of 115 destinations (53% of all destinations worldwide) have eased travel restrictions, an increase of 28 since 19 July. Of...
Will COVID-19 Be a Catalyst for More Hotel Mergers and Acquisitions?
Linchi Kwok | September 10, 2020
By Linchi Kwok COVID-19 has put many restaurants and hotels out of business. A recent example is the permanent closure of the iconic Hilton Times Square Hotel. Several restaurant chains recently rolled out new store designs to embrace the contactless self-service and delivery trends demanded by customers. Additionally, when more schools and businesses are reopening, the restaurant industry has already shown signs of recovery. There was a 2% increase in spending year-over-year in the week ending August 30. The outlook for hotels, however, is not as optimistic. The hotel industry is still struggling. According to the latest U.S. hot...
Baird/STR Hotel Stock Index Jumps 19.0% in August
Baird | September 9, 2020
HENDERSONVILLE, Tennessee, and MILWAUKEE—The Baird/STR Hotel Stock Index jumped 19.0% in August to a level of 3,582. Year to date through the first eight months of 2020, the stock index was down 32.0%. “Hotel stocks significantly outperformed in August along with other travel-related stocks as investors cheered continued progress on the medical front and accommodative interest rate policies that are expected to be in place for the foreseeable future,” said Michael Bellisario, senior hotel research analyst and director at Baird. “Both the Hotel Brands and the Hotel REITs outperformed their respective benchmarks by more than 10 perce...
Hurricane Laura Displacements Create Hotel Demand in Louisiana and Texas
STR | September 8, 2020
HENDERSONVILLE, Tennessee—Evacuations and displacements due to Hurricane Laura created hotel demand in markets throughout Louisiana and Texas last week, according to an analysis by STR. During the week of 23-29 August, Louisiana hotel occupancy rose 35.9% from the prior week to an absolute level of 55.7%. Texas hotel occupancy improved 17.0% to a level of 54.4%. “Different from the past natural disasters that have led to widescale evacuations, Hurricane Laura hit at a time when hotel performance is incredibly low because of the pandemic,” said Jan Freitag, STR’s SVP of lodging insights. “Usually with these analyses, we see dem...
