International Visitors Spent Nearly $20.1 Billion Traveling Within the United States in March
National Travel and Tourism Office (NTTO) | May 23rd, 2024
CBRE Expects RevPAR Growth to Improve in H2 2024, Driven by Holiday and International Travel
CBRE Group, Inc. | May 16th, 2024
Hotel Investors in the UK Play the Waiting Game Prompting a Nearly 50% Fall in Hotel Transactions in Q3 2016, says Hotel Bulletin
HVS | November 8, 2016
08 November 2016, London: Transactions in the UK hotel market are likely to be subdued until the terms of Britain's exit from the Europeon Union become clearer and business confidence returns. The latest Hotel Bulletin, published this week by HVS, AlixPartners and AM:PM, outlines the fact that hotel transactions in Q3 totalled £522m in value, nearly half of that recorded in Q3 2015. Total transactions for the year-to-date were also significantly below that of last year. "There is still no strong indication of what form Brexit will take and this uncertainty has led to indecision and delays in hotel property transactions," said HVS ...
Resort With A Real Estate Ownership Component: A Turnaround Case Study
Erich Baum | November 7, 2016
By Erich Baum Whether the setting is sun-and-sand, snow-and-ski, or an indoor water park, today's destination resorts commonly feature real estate ownership programs. Structured as whole ownership, fractional ownership, or timeshare, these "residential" condominiums typically feature fully equipped kitchens and multiple bedrooms. This article provides a brief overview of this concept, using a turnaround case study to demonstrate methodology for evaluating ownership component economics. Why is the Real-Estate Ownership Component So Necessary? In the universe of real estate developments, high-end destination resorts are among the most cos...
Hotel CEOs Have a Payday in 2016
Keith Kefgen | November 7, 2016
By Keith Kefgen and Andrew Hazelton When we began our careers in the hotel business, it was widely thought that our industry paid executives rather poorly. Is that still true today? If CEO pay is any indication, it appears that stigma needs to change. In fact, based on our 20th review of hotel CEO pay, one could say that the industry is a vehicle for getting rich. Our analysis shows that the average pay check of a hotel CEO was more than $6M in 2015, while the average stock ownership was over $40M. Not bad for an industry with a tight-fisted reputation. Maybe more important than having a big pay check, we think CEOs should be graded on ...
Chris Kraus Leads CBRE Hotels’ Consulting in Northern California, Pacific Northwest & Rocky Mountain Regions
CBRE Group, Inc. | November 2, 2016
San Francisco, California – November 2, 2016 – Scott Biethan, head of CBRE Hotels' Consulting, and Kevin Mallory, CBRE Hotels' global head, are pleased to announce Chris Kraus, MAI as the CBRE Hotels' Consulting practice leader for Northern California, the Pacific Northwest and the Rocky Mountain regions. With the recent passing of Thomas E. Callahan, Mr. Kraus has assumed the day to day role of overseeing and running the business' hospitality consulting efforts within those markets. Mr. Kraus has spent the past 20 years working directly with Mr. Callahan, first with PKF Consulting USA in San Francisco and mo...
Marketing Strategies for a Competitive Advantage in 2017
Robert A. Rauch | November 1, 2016
By Robert Rauch According to Geoffrey Moore in his book Living on the Fault Line: Managing for Shareholder Value in the Age of the Internet, stock price is a measure of future potential based on present competitive advantage. Competitive advantage consists of two components, GAP and CAP. The first, GAP, is the distance between your hotel offerings and your nearest competitors or the competitive advantage gap. The second is CAP, the competitive advantage period, that is the projected period a company can maintain its differentiated position. In other words if a hotel company has superior products and significant barriers to entry, it has...
International Travel Remains Positive Despite Headwinds; Overall Outlook Weakens Heading into ‘17
U.S. Travel Association | November 1, 2016
In a new twist, domestic leisure lags domestic business WASHINGTON (November 1, 2016)—Recent interest among international travelers in the U.S. as a destination seems to have materialized into actual trips, according to the U.S. Travel Association's latest Travel Trends Index (TTI). International inbound travel growth remained positive throughout the third quarter, though it is expected to weaken slightly in the coming months. In the next six months, domestic leisure will remain the primary driver of U.S. travel. "The American travel economy has thus far successfully weathered Zika, Brexit, a volatile presidential campaig...
The 2016 Dallas Hotel Conference: HVS Takeaways
Kathleen Donahue | October 31, 2016
By Kathleen Donahue and Hunter Dietz Hotel owners, consultants, managers, developers, financiers, and other stakeholders gathered at the 2016 Dallas Hotel Conference on October 20, 2016, to share thoughts on U.S. hotel industry dynamics. The conference, held at the Omni Mandalay Hotel in Las Colinas, offered insights ranging from the impact of foreign capital sources to new forms of competition in Texas and surrounding markets. Continued Influx of Foreign Capital on U.S. Hotels Hotel owners and developers continue to find financing from foreign sources, especially China. In fact, the amount of available capital and investor interest fro...
Inconsistent Reservation Pace Cools Hotel Outlook
TravelClick | October 31, 2016
Sporadic Business Demand Increases Need for Hoteliers to Compete for Bookings NEW YORK – October 31, 2016 – As hoteliers in major North American markets round out 2016 and prepare for the New Year, the pace of new bookings, especially in the industry's business sector, continues to decline, according to new data from TravelClick's October 2016 North American Hospitality Review (NAHR). Over the last month, the pace of new bookings overall is down -2.2 percent, and the pace of new group business bookings in particular is down -8.5 percent over the same time last year. Average daily rates (ADR) and revenue per available room (R...
Is Election Year Uncertainty Putting U.S. Businesses At Risk?
Mike McCormick | October 28, 2016
By Mike McCormick Today, the GBTA Foundation released its latest quarterly U.S. business travel forecast, slightly downgrading our expectations from the previous quarter. Uncertainty around the upcoming presidential election is among the factors influencing our more pessimistic outlook for U.S. business travel spending through 2017. Along with the uncertainty surrounding the election, sluggish global expansion, low inflation, weak investment and choppy geopolitical conditions continue to shackle business travel volume and spending growth. GBTA forecasts business travel volume to advance just 1.0 percent in 2016, while spending falls 0.6...
Cyclical Challenges Drive Gaming, Lodging, & Restaurant Bankruptcies
Fitch Ratings | October 27, 2016
Fitch Ratings-New York-27 October 2016: Distressed gaming, lodging and restaurant companies often find themselves on the road to bankruptcy during periods of weak consumer spending, according to Fitch Ratings' updated Gaming, Lodging and Restaurant Bankruptcy case study report. "Weak consumer or business spending, rising costs, excess capacity and changing consumer preferences present challenges to the gaming, lodging and restaurant sectors," said Sharon Bonelli, Senior Director, Leveraged Finance. Thirteen of the 25 bankruptcies in Fitch's case study occurred during the 2008 - 2010 recession, when consumer discretiona...
Business Travel Continues to Grow in China, While Organizations Adopt a More Traveller-Centric Approach to Their Business Travel Programs
CITS American Express Global Business Travel | October 26, 2016
SHANGHAI, Oct. 26, 2016 -- CITS American Express Global Business Travel today announced the results of its 2016 China Business Travel Survey (the Barometer) during the twelfth annual China Business Travel Forum (CBTF), held in Shanghai. Earlier this year, it was widely reported that expenditure on business travel in China has overtaken the United States to be the country with the largest business travel spending globally*. According to the Barometer's findings, average growth for travel and expense (T&E) budgets in China in 2016 was 4.86%, consistent with 4.8% growth in 2015, and also with the 4.42% that had been anticipated in ...
Shifts in Hotel Revenues Reflect Changes in Development and Guest Preferences
Robert Mandelbaum | October 21, 2016
By Robert Mandelbaum Historically, revenue management within the lodging industry has focused on renting guest rooms in a profitable fashion. Revenue managers, aided by sophisticated computer programs, helped hotels determine the proper balance between the volume of guest rooms rented, with the price charged to rent those rooms. These decisions are now made round the clock, with room prices on any given day changing by the hour. As revenue management has evolved, other factors have been added to the equation. Now, it is not just rooms revenue that is evaluated. Hotels realize that an occupied room has the ability to generate other reven...
CBRE’s Lodging Insights October 2016 Video
CBRE Hotels | October 21, 2016
Mark Woodworth and Jack Corgel update viewers on the latest forecasts from CBRE Hotels' Americas Research and their current thoughts on hot topics in the U.S. lodging industry. ...
China Life Invests with Starwood Capital Group in $2 Billion of U.S. Select-Service Hotels
Starwood Capital Group | October 19, 2016
GREENWICH, Conn., Oct. 19, 2016-- Starwood Capital Group, a leading global private investment firm, announced today that China Life Insurance Co. Ltd., China's largest life insurance company, has invested with Starwood Capital Group in approximately $2 billion of select-service hotels in the United States. China Life will serve as both the anchor and leading investor for the portfolio alongside a group of sovereign wealth funds and other investors. The portfolio—spanning locations in 40 states—comprises 280 select-service hotels affiliated with premier global hospitality brands. "We are honored to have been given th...
CBRE Hotels’ Trends 2016
Robert Mandelbaum | October 18, 2016
Robert Mandelbaum, Director of Research Information Services, discusses the highlights of CBRE Hotels' Americas Research's 2016 edition of Trends® in the Hotel Industry. In 2015, the U.S. lodging industry achieved an all-time record high level of occupancy which allowed for a sixth consecutive year of increases in revenues and profits. However, record levels of real growth in expenses are a concern for hoteliers. ...
Revenue Strategies for Boutique Hotels
Robert Rauch | October 12, 2016
By Robert Rauch The market is poised for boutique hotels to make an impact on the hotel industry like they never have before. With an expected soft landing of the economy in 2017 (2-3 percent RevPAR growth max) it is more important than ever for independent hotels to ensure that they have proper revenue strategies in place. Competing with the big brands for market share can sound like a herculean struggle but with execution of the proper procedures, a boutique hotel can stand apart from the crowd. Revenue Generation Understanding where your business comes from is the first step of proper revenue management. Millennials now make up the l...
2016 Canadian Hotel Valuation Index
Monique Rosszell | October 11, 2016
By Monique Rosszell, Sunny Choi and Cedric Oberlin The HVS 2016 Canadian Hotel Valuation Index (HVI) not only releases countrywide hotel values for 2015 but also projects the direction of these values through 2019. View Report ...
2016 African Hotel Valuation Index
HVS | October 10, 2016
By Tim Smith, Tshepo Makhudu, & Laura Dutrieux, HVS Highlights Welcome to the third edition of the African Hotel Valuation Index (HVI). We are thrilled that the number of markets included in the study continues to grow. In the first edition we had 14 cities, that grew to 18 last year and this year it has increased again to 21 cities in 16 different countries. A 50% increase in markets in such a short space of time is indicative of the ever increasing interest in the African hotel market. Moreover, and equally importantly it also illustrates an improved transparency and increase in data across the continent. CHART 1: TOP AND BOTTOM T...
Group Booking Pace Provides Longer-Term Opportunities for Hoteliers
TravelClick, Inc. | October 6, 2016
Eighteen of Top 25 North American Markets Show Committed Occupancy* Increases Compared to August 2016 NEW YORK – October 6, 2016 – Hoteliers in major North American markets can look forward to an improved group booking pace beginning at the end of 2016 and continuing into 2017, demonstrating its value in capturing incremental business as hoteliers prepare for the New Year. At the same time, hoteliers are experiencing healthy increases in both transient leisure (individual reservations that are made by leisure travelers) and group bookings in the third and fourth quarters of 2016, according to new data from TravelClick's Sept...
Lodging Conference 2016 Recap
Robert A. Rauch | October 4, 2016
by Robert A. Rauch This past week, many of us got together at the Lodging Conference in Phoenix. The forecast, depending on who you believe, is cloudy. Aran Ryan, Director of Lodging Analytics at Tourism Economics stated that business investment and the energy sector are down and the overall economy has plateaued. Having said that, he also noted that the CEO outlook has improved, consumer spending is up, jobs and income growth have improved and household debt is down. Net worth is up due to housing and stock prices and gas prices are down. Aran's forecast is for GDP growth of just over 2 percent. STR's Steve Hennis called for RevPAR gro...
The Global Hotel Construction Pipeline Shows Modest Growth Up 3% by Projects and Rooms YOY
Lodging Econometrics (LE) | September 28, 2016
September 28, 2016 – PORTSMOUTH, NH According to the recent Global Construction Pipeline Trend Report from Lodging Econometrics (LE), who tabulates the Construction Pipeline for 182 countries worldwide, the total pipeline has 11,260 Projects/1,919,370 Rooms, up 3% by projects and rooms Year-Over-Year (YOY). For hotels currently Under Construction, the Global Pipeline has 5,232 Projects/986,995 Rooms, down 2% by projects and up 1% by rooms YOY. There are 3,396 Projects/489,503 Rooms Scheduled to Start Construction in the Next 12 Months, up 19% by projects and 17% by rooms. Projects in Early Planning, 2,632 Projects/442,872 Rooms, a...
Sao Paulo Leads Latin America’s Hotel Construction Pipeline with 38 Projects Followed by Campinas, Brazil and Rio de Janeiro
Lodging Econometrics (LE) | September 27, 2016
September 27, 2016 – PORTSMOUTH, NH According to Latin America's Hotel Construction Pipeline from Lodging Econometrics (LE), the three cities with the largest pipelines are: Sao Paulo with 38 Projects/7,191 Rooms, Campinas, Brazil with 34 Projects/6,239 Rooms and Rio de Janeiro with 32 Projects/6,625 Rooms. The leading franchise companies in Latin America's Pipeline are: AccorHotels with 111 Projects/16,551 Rooms, Marriott International with 58 projects/9,814 Rooms and Hilton Worldwide with 55 Projects/7,483 Rooms. The leading brand for each of Latin America's top three franchise companies are: Accor's Hotel Ibis with 47 Projects/...
The Middle East’s Top Three Cities with Largest Construction Pipelines are Dubai; Riyadh, Saudi Arabia; and Doha, Qatar
Lodging Econometrics | September 23, 2016
September 23, 2016 – PORTSMOUTH, NH – According to the Middle East's Hotel Construction Pipeline from Lodging Econometrics (LE), the three cities with the largest pipelines are: Dubai with 110 Projects/31,155 Rooms, Riyadh, Saudi Arabia with 56 Projects/11,866 Rooms, and Doha, Qatar with 44 Projects/9,554 Rooms. The leading franchise companies in the Middle East's Pipeline are: Hilton Worldwide with 75 Projects/22,708 Rooms, Starwood Hotels & Resorts with 49 Projects/14,249 Rooms and Marriott International with 43 Projects/10,513 Rooms. The leading brand for each of the Middle East's top three franchise companies are: Hi...
Boston’s Lodging Supply Growth Outpaces Demand, Resulting in Lowered Projected Performance
Pinnacle Advisory Group | September 23, 2016
September 23, 2016 While demand year-to-date through August is up a strong 4.1% in the Boston/Cambridge lodging market, it has not been enough to compensate for the growth in supply which has grown 4.7%. Driving the supply growth, the aloft and element hotels opened in the Seaport, the Godfrey Hotel opened in Downtown Crossing, and the Hotel Commonwealth completed its expansion, all of which took place in the Q1 2015, the market's slowest months. On the demand side of the equation, the local lodging market experienced an increase in demand every month of the year, although the pace of demand was somewhat volatile. Specifically, the mont...
