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
Improved Hotel Sustainability Benchmarks Outlined by Cornell Study
the Center for Hospitality Research | August 29, 2016
Ithaca, NY, August 29, 2016 - Cornell's Center for Hospitality Research (CHR) has released the latest benchmarks from an ongoing international project to create default sustainability data for the global hotel industry. The report, "Hotel Sustainability Benchmarking Index 2016: Energy, Water, and Carbon," compiled by Eric Ricaurte in collaboration with eleven global hotel firms, analyzes data provided for 8,880 properties. The report, which details the Cornell Hotel Sustainability Benchmark Index (CHSB), is available at no charge from the CHR at the Cornell School of Hotel Administration. "By adding new segmentation by climate and hotel...
Los Angeles Leads U.S. Pipeline in Early Planning Projects with 36 Hotels on the Drawing Board
Lodging Econometrics | August 23, 2016
August 23, 2016 – PORTSMOUTH, NH – According to the recent United States Construction Pipeline Trend Report from Lodging Econometrics (LE), Los Angeles has 104 Projects/17,912 Rooms in the pipeline. There are 28 Projects/6,030 Rooms Under Construction, 40 projects/5,539 Rooms Scheduled to Start Construction in the Next 12 Months and 36 Projects/6,343 Rooms in Early Planning. At 36 Projects/6,343 Rooms, Los Angeles has the largest number of Early Planning projects of any market in the Construction Pipeline. Of these, 20 Projects/4,372 Rooms have yet to make a branding decision, the largest of which is a 1,000-Room project dow...
HVS Market Pulse: Island of Oahu, Hawaii
John Berean | August 23, 2016
Tourism to Hawaii's most populous island is booming, with Asian-Pacific countries sourcing a major boost in visitation. Given a number of planned projects across Oahu, hotel developers and major brands are working to meet the demand. By John Berean Many things make Hawaii unique among American tourism destinations. The island chain's physical separation from the U.S. mainland heightens its diverse, exotic allure—a Hawaiian vacation is different in nature (no pun intended) than a trip to any other subtropical destination in the continental U.S. Hawaii is also closer to critical Asian markets, including China, which is producing an...
Cost Segregation Studies for Hospitality Assets
Tim Sauer | August 22, 2016
By Tim Sauer HVS prides itself on being a trusted advisor for hotels owners and investors, and we are constantly looking for opportunities to maximize our clients' cash flows and returns. The following article highlights the basics of cost segregation studies and their potential benefits for our clients. While HVS does not offer this service, we have consulted with cost segregation professionals to maximize its potential benefits in a hospitality context. The Internal Revenue Code (aka the "IRS Code") requires that the cost of commercial property be expensed over its designated recovery period. This annual expense, known as depreciation...
Changing Regulations Dominate Cornell Human Resources Roundtable
the Cornell Institute for Hospitality Labor and Employment Relations | August 22, 2016
Ithaca, NY, August 22, 2016 - Tighter interpretations of labor regulations by the National Labor Relations Board (NLRB) engaged participants in the 14th annual Labor and Employment Roundtable, hosted by the Cornell Institute for Hospitality Labor and Employment Relations (CIHLER) at the School of Hotel Administration. A full explanation of the roundtable's deliberations is found in a report that is available at no charge from CIHLER and Cornell's Center for Hospitality Research, CIHLER Roundtable Highlights: Dealing with Shifting Labor Employment Sands, by David Sherwyn. Roundtable chair and CIHLER Director David Sherwyn focused the dis...
Dallas Pipeline Growth Continues with 128 Projects Under Construction, Scheduled and Planned
Lodging Econometrics | August 19, 2016
August 19, 2016 – PORTSMOUTH, NH – Lodging Econometrics reports that according to its most recent Construction Pipeline Trend Report, Dallas has 128 Projects/15,682 Rooms in the pipeline, the third highest in the U.S. Projects Under Construction are at 40 Projects/5,170 Rooms, those Scheduled to Start Construction in the Next 12 Months are at 68 Projects/8,334 Rooms while those in Early Planning are at 20 Projects/2,178 Rooms. Second only to Nashville, Dallas added the most projects Year-Over-Year (YOY) to its pipeline with 27 Projects/2,771 Rooms. Under Construction added 19 Projects/2,303 Rooms, up 90% by projects YOY and ...
Houston, Texas Leads in Projects to Start Construction in the Next 12 Months
Lodging Econometrics | August 18, 2016
August 18, 2016 – PORTSMOUTH, NH – Houston has 170 Projects/20,083 Rooms in the Hotel Construction Pipeline according to Lodging Econometrics (LE). Of all markets, Houston has the most projects Scheduled to Start Construction in the Next 12 Months with 87 Projects/9,771 Rooms. Other project stage totals consist of 49 Projects/6,692 Rooms Under Construction and 34 Projects/3,620 Rooms in Early Planning. With 29 projects Scheduled to Start Construction in the Next 12 Months, InterContinental Hotels Group (IHG) has the most scheduled projects of all franchise companies in Houston. Marriott International and Hilton Worldwide are...
Choppy Waters for Hotel Investment
CBRE | August 18, 2016
By Jeanette Rice, Americas Head of Investment Research, CBRE Despite still strong fundamentals in hotel operating performance, the capital markets environment for the hotel sector has been going through choppy waters this year. A brief review of key investment metrics illustrates some of the challenges. Hotel Investment Remains Subdued Tepid hotel investment activity continued in Q2 2016. U.S. hotel acquisitions totaled $6.5 billion in Q2 2016, down 50% year-over-year. Similarly, the H1 2016 total reflects a 55% decline from H1 2015. Fortunately, the year-over-year drop in single-asset purchases was less severe. Buying activity of indiv...
New York is Top Market for New Hotel Openings in 2016 According to U.S. Construction Pipeline Trend Report
Lodging Econometrics | August 17, 2016
August 17, 2016 – PORTSMOUTH, NH – According to a recent United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the markets expecting the largest number of New Hotel Openings in 2016 are: New York with 46 Projects/7,129 Rooms, Houston with 36 projects/4,145 Rooms, Dallas with 25 Projects/3,014 Rooms, Miami with 21 Projects/2,638 Rooms and Austin with 19 Projects/2,176 Rooms. In the first half of 2016, the U.S. opened 380 Hotels/42,798 Rooms. 116 of these hotels and 17,084 of the rooms were in the top 25 markets, representing 31% of all hotels and 40% of the rooms opened in the first half. ...
Top U.S. Hotel Construction Markets Include New York, Houston, Dallas, Nashville, and Los Angeles
Lodging Econometrics | August 16, 2016
August 16, 2016 – PORTSMOUTH, NH – Lodging Econometrics (LE) reports that the five U.S. markets with the largest hotel construction pipelines by project count are: New York with 196 Projects/32,121 Rooms; Houston with 170 Projects/20,083 Rooms; Dallas with 128 Projects/15,682 Rooms; Nashville with 109 Projects/13,789 Rooms; and Los Angeles with 104 Projects/17,912 Rooms. New York has continuously had the largest project count since the fourth quarter of 2011 while Houston has had the second largest for the last ten consecutive quarters. ...
Brexit and Travel: The Risks of a Tourism Downturn in Asia
Larissa Lam | August 16, 2016
By Larissa Lam and Daniel J Voellm How will Brexit affect UK Tourism? For several years, the term Brexit has become a household name in not only countries in Europe but also countries around the world, being the withdrawal of the United Kingdom from the European Union. In 2012, UK Prime Minister David Cameron rejected calls for a referendum on membership in the European Union. However, he did not rule out a referendum happening in the near future. Fast forward to 24 June 2016, the people in the UK gathered and voted after a heavily publicised and contested pre-referendum period by both the 'Leave' and 'Stay' camps. In the end, 48.1% of ...
New York City Leads U.S. Construction Pipeline with 196 Projects/32,121 Rooms
Lodging Econometrics | August 15, 2016
August 15, 2016 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that the New York City Hotel Construction Pipeline is at 196 Projects/32,121 Rooms. It is the largest pipeline in the U.S. New York City also has the highest number of projects Under Construction with 103 Projects/19,010 Rooms, 53% of New York's Total Pipeline. Projects Scheduled to Start in the Next 12 Months are at 62 Projects/8,868 Rooms, while Early Planning stands at 31 Projects/4,243 Rooms. Marriott International has the most pipeline projects Under Construction of any franchise company in New York City with 22 Projects/5,526 Rooms, the lar...
U.S. Construction Still Climbing
Lodging Econometrics | August 10, 2016
August 10, 2016 – PORTSMOUTH, NH – According to the latest United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the total U.S. Construction Pipeline ended Q2 2016 with 4,633 Projects/569,848 Rooms, up 15% by projects and 12 % by rooms Year-Over-Year (YOY). This is the 15th consecutive quarter of pipeline growth. There are 1,381 Projects/184,167 Rooms currently Under Construction, up by 237 projects or 21%. Projects Scheduled to Start in the Next 12 Months, at 2,198 Projects/249,103 Rooms, are up 480 projects, 28%. Projects in Early Planning with 1,054 Projects/136,578 Rooms are down by 122 project...
Reservation Pace Decline Signals Stronger Headwinds for Hoteliers
TravelClick, Inc. | August 10, 2016
New July Bookings Show Signs of Future Weakness in North American Markets NEW YORK – August 10, 2016 – The pace of new bookings is down this summer, with the business segment experiencing a -4.0 percent decline over the past 30 days. However, average daily rates (ADR) are slightly up 2.0 percent over the same time last year based on reservations that are currently on the books, according to new data from TravelClick's July 2016 North American Hospitality Review (NAHR). "As new July bookings have fallen by -3.6 percent compared to the same time last year, it's becoming abundantly clear that there are stronger headwinds ahead ...
Canadian Lodging Outlook 2016 – Q2
HVS | August 9, 2016
STR and HVS are pleased to provide you with the quarterly report of the Canadian Lodging Outlook. Each report includes occupancy (Occ), average daily rate (ADR), and revenue per available room (RevPAR) for six major markets. If you would like a detailed hotel performance data for all of Canada, STR offers their Canadian Hotel Review. The Canadian Hotel Review is available by annual subscription. For further information, please contact: info@str.com or +1 (615) 824-8664 ext. 3504. ...
UK Hotels Show Mixed Results in Q2 with Subdued Trading Forecast Says Hotel Bulletin
HVS | August 9, 2016
9 August 2016, London: Hotel occupancy in London showed its sixth consecutive quarter of year-on-year decline with Brexit poised to subdue the sector further, according to the latest Hotel Bulletin: Q2 2016, published this week by HVS, AlixPartners and AM:PM. Hotel occupancy in the capital, in common with other major European cities, continues to be affected by increased global terrorist activity. London has also seen a decline in the number of US tourists travelling because of the presidential election. The impact has been a 2% decline in London's RevPAR compared with Q2 2015 and average room rates failing to increase for the second co...
With U.S. Hotels at Peak, CMBS Being Watched with a Wary Eye
Fitch | August 8, 2016
The days of strong RevPAR growth and occupancy rates are over for U.S. hotels, which could impair loan performance for CMBS as interest rates rise, according to the latest video in Fitch Ratings' Virtual Investor Series. While Fitch maintains a favorable outlook for the hotel sector, demand has peaked and several key hotel industry metrics could turn negative by 2018. 'We're now at the top of the cycle looking down," says Stephen Boyd, Senior Director, U.S. Corporates. "The trajectory of the economy, geopolitical shocks and the U.S. dollar will be key factors in shaping the market going forward.' Most hotel brands will likely see occupa...
Your Guests Use Netflix, Amazon and Uber. What Does This Mean for Your Hotel?
ALICE | August 3, 2016
From Amazon in retail, to Uber in transportation and Airbnb in hospitality, a variety of businesses across multiple industries are embracing platform strategies. For the hotel industry, this new model offers both a competitive threat and an opportunity. By using technology to deliver services in more convenient, faster and more transparent ways, these companies are building massive businesses and threatening incumbents. But the truth is that this model offers plenty of lessons for traditional hotels. How can hotels harness the power of platforms to seamlessly unify their operation and realize huge gains in revenue, efficiency, and guest...
The Misconceptions of Millennials and Meetings
Robert Rauch | August 2, 2016
By Robert A. Rauch, CHA Originally posted on PrevueMeetings.com There are a number of misconceptions floating around the hotel industry about our largest growing demographic, the Millennials. This stems from an overgeneralization of the key trends that they have brought to the forefront of our industry. The Millennials, generally categorized as those born between 1980 – 1995, are a maturing group that prizes the use of technology for efficiency and ease of doing business. This is why it comes to the surprise of many that they actually prefer face-to-face meetings and events just as much if not more than previous generations. Often...
US RevPAR Forecast Lowered to 3%-4% Amid Signs of Fatigue
Fitch | August 2, 2016
NEW YORK - August 2, 2016 - US lodging fundamentals are decelerating and signs of fatigue are signaling a negative turn could be ahead, according to Fitch Ratings. We had expected RevPAR to accelerate modestly during the remainder of the year. However, lodging fundamentals are softening and RevPAR growth continues to decelerate, with 2016 likely to come in below the low end of our original 4% to 5% estimate. Supply is growing but restrained by available capital. Fitch now projects that US RevPAR will increase by 3%-4% during 2016 and by 1%-2% during 2017, with monthly comparisons possibly turning negative during the latter half of the y...
International Visitation Rebounds in June but Brexit to Affect Remainder of 2016
U.S. Travel Association | August 2, 2016
WASHINGTON (August 2, 2016)—Despite a small uptick in June, the U.S. Travel Association's Travel Trends Index (TTI) predicts muted international inbound travel growth for the remainder of 2016, due in part to the fallout from Britain's decision to leave the European Union. International inbound travel had been stagnant for months, with variables such as the strong U.S. dollar weighing on travel from previously robust markets like Canada. International inbound travel growth in June somewhat defied expectations as the summer travel season began in earnest, outpacing domestic travel for the first time in 13 months. However, a...
Tourism Spending to Buoy US Leisure Sector Demand
Fitch Ratings | July 26, 2016
Fitch Ratings-New York-26 July 2016: US leisure company growth will decelerate but remain positive for the balance of 2016, according to Fitch Ratings. Tourism spending remains a bright spot for the sector, outpacing total US GDP growth as well as the leisure GDP subcomponent. However, Brexit could challenge companies with international exposure. Healthy employment and income trends are promoting higher discretionary consumer spending and support Fitch's Stable Outlook for the US leisure sector. Competition and mixed consumer confidence barometers balance these positives within the context of producer sector weakness, which led Fitc...
Evaluating Hospitality-Focused Mixed-Use Assets
Tim Sauer | July 25, 2016
HVS's Mixed-use appraisal expert Tim Sauer, MAI lays out some of the considerations for the evaluation of hospitality-focused mixed-use assets By Tim Sauer As Americans continue to "rediscover" urban areas, they not only seek-out these areas as places to live but also as places to stay when they travel. These walkable neighborhoods offer residents and visitors ready access to civic, economic, and social nodes, to which local hotels can provide access for guests. This results in demand from more segments of hotel guests than if the hotel were located near a single demand driver. Additionally, hotels in these areas are often less susc...
2015/16 United States Hotel Franchise Fee Guide from HVS
Kasia M. Russell | July 25, 2016
The selection of an appropriate franchise affiliation affects a property's ability to compete in its local market, generate profits, and achieve a desirable image and market orientation. By Kasia M. Russell and Bomie Kim The HVS U.S. Hotel Franchise Fee Guide provides a comparative review of various hotel franchises based on their applicable franchise fees. The selection of an appropriate franchise affiliation affects a property's ability to compete in its local market, generate profits, and achieve a desirable image and market orientation. Because the success of a hotel is based primarily on the cash flow generated, owners and lenders...
