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
Covid-19: Impact on the Indian Hotels Sector
Mandeep S Lamba | April 2, 2020
By Mandeep S Lamba, Akash Datta, Dipti Mohan The world is still coming to terms with the Covid-19 outbreak and there is no doubt that the pandemic will change the world as we know it. With the globalized world going into partial or complete shutdown, the overall impact on human life, economic growth and businesses is immeasurable, both in the short term and long term due to the uncertainty as things evolve. While most Economists and Analysts currently expect the global economy to rebound, by some measure in the latter part of 2020, the exact timeline cannot be determined till the virus is contained across the globe. Nearer home, the ...
STR: Preliminary Caribbean Hotel Results for Week Ending 28 March
STR | April 2, 2020
Note: To inform the industry during the COVID-19 pandemic, STR will temporarily publish weekly communication for the Caribbean based on preliminary data. This preliminary data represents a percentage of STR’s total sample for the region. Once monthly processing is complete, data points will likely appear different. The Caribbean hotel industry experienced its steepest year-over-year declines yet in the three key performance metrics during the week of 22-28 March 2020, according to preliminary data from STR. In comparison with the week of 24-30 March 2019, the Caribbean reported the following: Occupancy: -85.9% to 10.6% Average...
STR: Preliminary Mexico Hotel Results for Week Ending 28 March
STR | April 2, 2020
Note: To inform the industry during the COVID-19 pandemic, STR will temporarily publish weekly communication for Mexico based on preliminary data. This preliminary data represents a percentage of STR’s total sample for the region. Once monthly processing is complete, data points will likely appear different. Mexico’s hotel industry showed its sharpest reaction yet in the face of the COVID-19 pandemic with deep year-over-year declines in the three key performance metrics during the week of 22-28 March 2020, according to preliminary data from STR. In comparison with the week of 24-30 March 2019, Mexico hotels reported the following: ...
STR: Mainland China Hotel Industry Shows Early Signs of Performance Recovery
STR | April 2, 2020
BEIJING—Mainland China’s daily hotel occupancy reached an absolute level of 31.8% on 28 March, up from a low of 7.4% during the first week of February, according to preliminary data from STR. Additionally, opening rates have been significant in key markets across the region. “We’re seeing green shoots in hotel occupancy figures, but we must stress that these are only early signs of a recovery that is likely to develop slowly,” said Christine Liu, STR’s regional manager for North Asia. “Some of the demand stems from corporate travel, primarily within the same province, as well as small-scale meetings. Additionally, hotels are ...
U.S. Hotels: Changes in RevPAR and Profits During Historical Recessions
Robert Mandelbaum | April 1, 2020
By Robert Mandelbaum The U.S. lodging industry was prepared for a slowdown in performance entering 2020. CBRE Hotels Research was projecting a 1.1 percent increase in RevPAR for the year. Even with this low level of revenue growth, there were certain factors that could have sustained - or at least cushioned the blow of minimal declines - the nine-year trend of profit growth for U.S. hotels since 2010. We are in a low inflation period, which keeps the cost of goods and services low. Recent changes to food and beverage operations and marketing practices have helped to lower fixed costs. There is no energy crisis, so utility co...
STR: U.S. Hotel Results for Week Ending 28 March
STR | April 1, 2020
HENDERSONVILLE, Tennessee—Reflecting the continued impact of the COVID-19 pandemic, the U.S. hotel industry reported significant year-over-year declines in the three key performance metrics during the week of 22-28 March 2020, according to data from STR. In comparison with the week of 24-30 March 2019, the industry recorded the following: Occupancy: -67.5% to 22.6% Average daily rate (ADR): -39.4% to US$79.92 Revenue per available room (RevPAR): -80.3% to US$18.05 “Year-over-year declines of this magnitude will unfortunately be the ‘new normal’ until the number of new COVID-19 cases slows significantly,” s...
COVID-19 and the Chinese Hotel Sector
Caroline Zhang | March 31, 2020
By Caroline Zhang, Chang Xu, Rachel Cui From the beginning of 2020, Covid-19 spread in China and escalated into a global pandemic, impacting the travel, hotel, and catering industries. HVS Shenzhen Office combined existing market information and our own survey results, as well as the historical data, to determine the impact and provide an outlook on the Chinese hotel industry. View report...
An Updated 2020 Hotel Outlook | CBRE U.S. ViewPoint
March 27, 2020
Economic conditions are deteriorating quickly with the Covid-19 outbreak causing a sharp drop in economic activity. Key Findings: CBRE expects GDP growth will slow to 0.4% in 2020. U.S. RevPAR will decline by 37% in 2020, with a contraction of more than 60% in Q2. Demand will decline by 28% in 2020; ADRs are expected to decline 11% in 2020. The most complex constraint impairing travel comes from social distancing efforts and travel or group gathering restrictions on global populations. Properties that primarily cater to discretionary travel will be affected most, i.e. luxury, upper upscale, urban, airport, and resort pro...
Latest Industry Survey Shows How North American Destination Organizations Are Impacted by the Escalating Effects of COVID-19
MMGY Global | March 26, 2020
Pandemic has dramatically shifted sector’s sentiment and spending in two weeks KANSAS CITY, MO (March 26, 2020) – MMGY Travel Intelligence, in partnership with Destinations International Foundation, has released the inaugural findings from a benchmark series of bi-weekly surveys of North American destination professionals. The surveys track how this sector has been affected by COVID-19 and what shifts organizations are making during a period of very fluid change. Preliminary findings reveal that, in the span of about two weeks, the reverberations of the pandemic dramatically changed the sector’s outlook, operations and marketing sp...
As Consumers and Travel Suppliers Work Through Crisis, Most Travelers Satisfied With Industry Response So Far
J.D. Power | March 26, 2020
60% of travelers agree hoteliers, cruise lines and airlines have demonstrated concern for the health and safety of the traveling public. More than half of the travelers surveyed believe travel suppliers are meeting or exceeding expectations on cancellation policies. A majority of travelers (65%) believe that travel suppliers have provided a good level of information about cleaning procedures. As travelers and travel suppliers struggle to make sense of what impact the coronavirus crisis is having on their personal and professional lives, a pulse survey conducted by J.D. Power finds that the travel industry is genera...
STR: U.S. Hotel Results for Week Ending 14 March
STR | March 19, 2020
Showing further COVID-19 impact, the U.S. hotel industry reported negative year-over-year results in the three key performance metrics during the week of 8-14 March 2020, according to data from STR. In comparison with the week of 10-16 March 2019, the industry recorded the following: Occupancy: -24.4% to 53.0% Average daily rate (ADR): -10.7% to US$120.30 Revenue per available room (RevPAR): -32.5% to US$63.74 Performance declines were uniform across chain scales, classes and location types. “To no surprise, the hurt continued and intensified for hotels around the country,” said Jan Freitag, STR’s senior VP of lodgin...
STR: U.S. Hotel Performance for February 2020
STR | March 19, 2020
HENDERSONVILLE, Tennessee—In its final month before feeling the impact of the COVID-19 pandemic, the U.S. hotel industry reported positive results in the three key performance metrics during February 2020, according to data from STR. In a year-over-year comparison with February 2019, the industry posted the following: Occupancy: +0.2% to 62.2% Average daily rate (ADR): +1.4% to US$130.78 Revenue per available room (RevPAR): +1.7% to US$81.33 Significant COVID-19 effects were visible through the first two weeks of March, as outlined in weekly press releases for 1-7 March and 8-14 March. STR continues to monitor the...
HVS Market Pulse: Phuket, Thailand
Apichaya Wongsuwan | March 19, 2020
The following article gives a brief overview of Phuket, its tourism industry, and the recent dynamics of the local lodging market. By Apichaya Wongsuwan, Ruj Masan, Pawinee Chaisiriroj Following the market’s prosperity in the past few years, hotels across all segment have started to witness hindering economic growth, resulting in a softer performance in 2019. The unexpected outbreak of COVIC-19 has swept away the majority of the demand in the market. As the number of travel advisory continues to heighten, concerns over air traffic and tourism spending are increasing among the public as people are reluctant to travel. The following ar...
Chinese Tourism at a Difficult Time
Yong Chen | March 19, 2020
What makes the year 2019-20 unprecedented in Chinese tourism is the spate of incidents coming one after another, namely the US-China trade war, the Hong Kong protests and the novel coronavirus outbreak. By Yong Chen Demand shocks and tourism The global tourism industry could not have been hurt so badly any time in history other than the year 2019−20. The tourism industry involves temporary displacement of people from one place to another, whereby demand is generated. Thus, any factor that impedes tourist flow will cause a negative demand shock in the industry one way or another. The impact on tourism demand depends on the nature of the...
hotelAVE Projects a Five-Year Recovery Period for Hotel Industry Post Coronavirus
hotelAVE | March 19, 2020
Business Recovery Duration Similar to that Following September 11th & The 2008 Financial Crisis PROVIDENCE, R.I., March 19, 2020 -- Hotel Asset Value Enhancement (hotelAVE), the premier hotel asset management company, in a study released today, estimated that it will take the hotel industry in the United States approximately five years to achieve pre COVID-19 occupancies, revenues and profitability. In addition, the hotelAVE COVID-19 Hotel Outlook predicts that the pace of the five-year recovery from the pandemic will be extended after an immediate mini-spike beginning in May or June, as the impact on the travel and hotel industry i...
Report: Coronavirus Having Catastrophic Impact on Travel Businesses and Workers
U.S. Travel Association | March 18, 2020
Washington (March 17, 2020)—A new analysis released Tuesday by the U.S. Travel Association projects that decreased travel due to coronavirus will inflict an $809 billion total hit on the U.S. economy and eliminate 4.6 million travel-related American jobs this year. The dire impact numbers, prepared for the U.S. Travel Association by Tourism Economics, were presented by U.S. Travel Association President and CEO Roger Dow at a Tuesday White House meeting with President Trump, Vice President Pence, Commerce Secretary Wilbur Ross and other travel leaders. "The health crisis has rightly occupied the public's and government's attention, but...
Coronavirus Puts up to 50 Million Travel and Tourism Jobs at Risk Says WTTC
WTTC | March 13, 2020
London, UK, 13 March 2020: The World Travel & Tourism Council says up to 50 million jobs in the Travel & Tourism sector are at risk due to the global COVID-19 pandemic. Gloria Guevara, WTTC President & CEO, said: “WTTC figures show the stark impact on the Travel & Tourism sector of the present COVID-19 outbreak with analysis now suggesting that up to 50 million jobs are at risk in the sector globally”. “When the time is right, WTTC and the global private sector will be ready to help and support the government and countries to recover” Latest figures from WTTC, which represents the global Travel & Tourism p...
Fitch Revises North American CMBS Hotel Outlook to Negative; Coronavirus Adds to Expected Decline
Fitch Ratings | March 13, 2020
Fitch Ratings has revised its North American CMBS hotel asset performance outlook to negative from stable/negative. The negative outlook revision for the sector is due to several factors including new supply and weakening economic conditions. Fitch expects RevPAR growth to flatten out in 2020 and then decrease by a low single digit percent in 2021. The impact from the coronavirus will exacerbate hotel cash flow declines and rising expenses from wages and real estate taxes may exceed revenue growth. Hotels will be the first property type to be affected by the coronavirus due to reduced tourism and travel, and a slowdown in economic activ...
UK Hotel Sector Can Breathe a Small Sigh of Relief
HVS | March 12, 2020
The Chancellor of the Exchequer has announced a number of measures in his Budget statement which should assist the UK hotel sector in the wake of the coronavirus, which has already precipitated a number of events and overnight stays in hotels to be cancelled or postponed, thereby causing a fall in hotel occupancy. The Chancellor has singled out the sector to receive a number of benefits which will help to reduce some of the pain, especially for smaller businesses – and not therefore for the larger enterprises that make up the vast majority of the sector. These measures include: Firms with fewer than 250 staff will be refunded for si...
Knowland Insights: Coronavirus Pandemic – Hotel Group Impact and Actions
Knowland | March 12, 2020
Large losses of business, mitigation in the short term and positioning for an eventual rebound Washington, DC (March 12, 2020) Knowland, the leader in revenue-generating hospitality meetings data and analytics, is tracking the impact of the Coronavirus pandemic on group business for the hotel industry. Today, Knowland announced estimated group cancellation rates across a 90 - 120 day booking window for the US/North America, Asia Pacific and Europe regions. As expected, Asia Pacific has the highest cancellation rate with 90%, while U.S./North America hotels report a 40% cancellation rate for events and meetings. The U.S./North America ...
The Global Construction Pipeline Hits Record High at 2019 Year-End*
Lodging Econometrics | March 10, 2020
March 10, 2020 – PORTSMOUTH, NH Lodging Econometrics (LE) has released its year-end Global Construction Pipeline Trend Report, which compiles construction pipeline counts for every country, and city around the world. At the close of 2019, LE analysts state that the total global construction pipeline hit record highs with 15,000 projects/2,454,954 rooms, a 11% increase in projects and an 8% increase in rooms year-over-year (YOY). The global pipeline has been ascending for nine consecutive years after reaching its cyclical low, by rooms, in 2010. Four of the seven regions of the world continue to have pipelines trending upward, YOY. The e...
Asia Pacific, Excluding China, Hit Record Highs in All Stages of Its Hotel Construction Pipeline*
Lodging Econometrics (LE) | March 9, 2020
March 9, 2020 -- PORTSMOUTH, NH -- Analysts at Lodging Econometrics (LE) state that Asia Pacific’s total construction pipeline, excluding China, hit a new all-time high at the close of 2019 with 1,926 projects/409,447 rooms. Project counts are up 7%, while room counts are up 8%, year-over-year (YOY). Projects currently under construction stand at a record 991 projects with 224,354 rooms. Projects scheduled to start construction in the next 12 months and those in the early planning stage are also at all-time highs with 436 projects/85,417 rooms and 499 projects/99,676 rooms, respectively. New projects announced into the pipeline have a...
China’s Hotel Construction Pipeline Closes 2019 Hitting New All-Time High*
Lodging Econometrics (LE) | March 4, 2020
March 4, 2020 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that China’s total construction pipeline boomed in the fourth quarter of 2019 and closed the quarter at 3,526 projects/643,435 rooms, up 28% by projects and 11% by rooms year-over-year (YOY). At the end of 2019, both projects and rooms in the construction pipeline are at new all-time highs. China has the second largest pipeline in the world. Projects presently under construction are at 2,317 projects/411,032 rooms, up 13% by projects and down less than 1% by rooms, YOY. Projects scheduled to start construction in the next 12 months are at 763 projects/76,06...
Hotels Scrape Out Profit Growth in January Amid Coronavirus Concern
HotStats | March 3, 2020
U.S. hotels eked out a 0.6% year-over-year increase in GOPPAR in January, but as the full scope of the coronavirus becomes clearer, subsequent months could put pressure on hoteliers to generate both top- and bottom-line growth. Revenue, too, was up in the month, as rooms RevPAR grew 2.7% YOY on the back of an increase in average rate (up 1.1% YOY) and occupancy (up 1.0 percentage points). Positive revenue growth in F&B pushed total revenue to a 3.2% YOY increase, as non-rooms revenue grew 3.9% YOY. Still, hoteliers had trouble with flow-through, evidenced by the smaller increase in profit of only 0.6%. This came as a result of a jum...