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
Europe Sees Hotel Transactions Reach Record High Reveals HVS Report
HVS | March 3, 2020
03 March 2020, London: Total European hotel transaction volume reached the highest annual level ever recorded last year – with €27.1 billion-worth of deals being struck, according to the annual European Hotel Transactions report published this week by HVS and its brokerage and investment services division HVS Hodges Ward Elliott. The largest amount of capital was poured into the UK with some €5.3 billion (£4.4 billion) - 23% of total volumes, a 15% decrease on the previous year. German destinations booked the second most investment volumes at just over €4 billion (18% of total volumes), up 6% on 2018 levels. In terms of room co...
Revenue, Profit Up at European Hotels to Start Year
HotStats | February 28, 2020
It was a good start of the year for hoteliers in Mainland Europe. On the back of the positive results recorded in the last quarter of 2019, profit per available room achieved a 5.7% year-over-year increase in January 2020. The rise in profits was led by a growing top-line. With a 0.6% YOY uptick in average rate and an increase of 2.4 percentage points in occupancy, RevPAR placed 4.9% above January of 2019. It was the leisure segment (travelers using discounted or weekend rates and packages) that contributed the most to this escalation in RevPAR, accounting for 33.2% of rooms revenue and 31.7% of occupancy. A further...
HVS Market Pulse: Cape Cod
Roth Johnson | February 27, 2020
By Roth Johnson Seasonality and Market Performance As with most leisure markets, particularly those driven by weather, the Cape Cod market has a high degree of seasonality. In the last three years, peak-season August occupancy levels have averaged in the mid-80s, while low-season January occupancy levels have averaged in the low 20s. Both local hoteliers and the Cape Cod Chamber of Commerce have been mildly successful in expanding shoulder seasons in April, May, September, and October. Occupancy at upscale, upper-upscale, and luxury hotels on the Cape increased 5% from May 2017 to May 2019, and 6% from September 2017 to September 2018. I...
The Middle East’s Hotel Construction Pipeline Counts Essentially Even Year-Over-Year
Lodging Econometrics (LE) | February 27, 2020
February 27, 2020 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) state in the 2019 year-end report that the hotel construction pipeline in the Middle East stands at 618 projects/178,384 rooms, compared to 622 projects/181,813 rooms at the end of 2018. The pipeline in the Middle East remains strong as room counts have been over 170,000 in every quarter of the past two years. Projects currently under construction are at 357 projects/117,112 rooms. Projects scheduled to start construction in the next 12 months stand at 128 projects/32,684 rooms, and projects in the early planning stage are at 133 projects/28,588 rooms. The Mi...
January Hotel Data Highlights Coronavirus Scourge
David Eisen | February 27, 2020
By David Eisen The World Health Organization says that COVID-19, more commonly known as coronavirus, has the potential to become a pandemic. It’s already rocked the hospitality industry with canceled flights and forced hotel cancellations, even closures. When hotel executives talk about black-swan events — unpredictable occurrences that are beyond what is normally expected of a situation and have potentially severe consequences — coronavirus is about as swannish and dark as it gets. It’s certainly cast a pall over the hotel industry, leaving it reeling in its wake. Worry and uncertainty over the virus’s short-term and full-...
Europe’s Hotels See Third Year of Value Rise, Reveals Annual HVS Report
HVS | February 26, 2020
26 February 2020, London: Hotel values across Europe gained a further 3% last year according to the annual European Hotel Valuation Index (HVI) compiled by global hotel consultancy HVS, marking the third year of increase for Europe’s hotel sector. Most of the cities in the survey showed a positive valuation performance in 2019, with 10 experiencing value swings of over 5%. Only six of the 33 markets tracked in the European HVI showed a value decline. The year saw increased momentum for hotels in Southern Europe, with an overall increase in values of 7% - up from 4% in 2018 – with all cities in the region showing a value rise. Easter...
HVS Central Florida 2020 State of the Hotel Market
Donald C. Stephens Jr. | February 24, 2020
By Donald C. Stephens Jr. Orlando has long been distinguished as an iconic vacation destination by continuing its ranking as the No. 1 destination in the United States, according to Visit Florida. Since 2013, Orlando has reigned as the nation’s “Most Visited Tourist Destination.” With multiple factors driving Orlando’s appeal, hotel investors and developers are curious as to what is on the horizon for the hospitality market in Central Florida. With a variety of hotels and attractions in the Metro Orlando pipeline, and major international brands continuing investment in the market, the metrics point toward continued success in 2020 ...
Q4 Year End 2019 U.S. Lodging Market Update
Daniel Lesser | February 14, 2020
By Daniel Lesser After a tumultuous 4Q18, 2019 was a climb of the wall of worry as at several points many believed the grind higher was going to come to a halt, which did not occur. Although America’s financial system has been buffeted by a slowing global economy and the U.S. instigated trade war with China, it has been buoyed by the lowest unemployment levels during the past 50 years, and rising incomes which have fueled consumer spending and a generally optimistic sentiment. Although the U.S. economy is on solid footing, the longest period of expansion in its history places the nation in unchartered territory. The recent signing of a P...
Health Movement Leads to Growth in Hotel Spas
Mark VanStekelenburg and Jenna Finkelstein | February 13, 2020
By Mark VanStekelenburg and Jenna Finkelstein In 2007, CBRE introduced Trends® in the Hotel Spa Industry in response to the spa industry’s rapid expansion within hotels and resorts and its relevance to hotels’ bottom lines. For the second time in the history of the publication, spa revenue increased at a higher rate than rooms revenue and total operating revenue. During 2018, the 159 hotels in our survey sample of achieved a 3.7 percent growth in RevPAR, which led to a 3.8 percent rise in total operating revenue. Concurrently, spa department revenue increased by 4.8 percent. With RevPAR forecast to increase less than 1.5 percent throu...
US Hotel Brand Loyalty Contribution Reaches an All-Time High in 2019
Kalibri Labs | February 11, 2020
February 11th, 2020 – ROCKVILLE, MD – The hotel brand loyalty programs continue to play a major factor in where and how guests are booking their stays, and today loyalty-related bookings account for more than 50% of the total hotel bookings in the U.S., according to new, full-year 2019 booking data from Kalibri Labs. Throughout 2019, total US Loyalty Contribution increased 7.6% to 56.2%, a jump of 8.3 percentage points or 17.3% since the top hotel brands launched aggressive book-direct campaigns in 2016. However, top-line growth rates slowed in 2019, meaning it's more important than ever for hotels to control t...
2019 SpendSmart Year in Review Report Highlights Corporate Travel Spend Data
Certify, part of Emburse | February 6, 2020
PORTLAND, Maine--February 6, 2020--Certify, part of Emburse, a global leader in expense management and accounts payable automation, has released its 2019 SpendSmart™ Year in Review Report. The report highlights key data insights and trends in corporate travel spend, and identifies the most popular airline, meal, lodging, and transportation services among North American business travelers, based on more than 50 million receipts and expenses submitted by Certify users. The food delivery category saw the fastest growth, seeing an 86% year-over-year increase in transactions. DoorDash overtook Grubhub as the most expensed food delivery servic...
Israel Hits All-Time Record for Arrivals in 2019 With 4,551,600 Tourist Entries, a 10% Increase Over 2018
The Israel Ministry of Tourism | February 4, 2020
NEW YORK – Feb. 4, 2019 – Once again Israel has broken its record of tourist entries with 4,551,600 in 2019 from across the globe. This record is a 10% increase over 2018, which saw 4,120,800 tourist arrivals. “We couldn’t be more thrilled that 2019 ended with a record high of incoming tourism to Israel that resulted in a NIS 22 billion in revenue,” said Yariv Levin, Israel’s Minister of Tourism. “Thanks to the innovative marketing and promotional campaigns, we are happy to report a 10% increase in tourism compared with last year. We’re excited to continue this momentum in 2020.” The top six source countries to Israel ...
For the Second Consecutive Quarter, Los Angeles Leads in U.S. Hotel Construction Pipeline
Lodging Econometrics (LE) | January 31, 2020
January 31, 2020 – PORTSMOUTH, NH – At the close of 2019, analysts at Lodging Econometrics (LE) report that the top five U.S. markets with the largest total hotel construction pipelines are: Los Angeles, at a cyclical high, with 168 projects/28,501 rooms; Dallas with 160 projects/19,787 rooms; New York City with 158 projects/25,825 rooms; Atlanta, also at a cyclical high, with 143 projects/19,660 rooms; and Houston with 136 projects/14,114 rooms. Under construction project counts are at an all-time high with 1,768 projects with 237,362 rooms. Markets with the greatest number of projects already in the ground are New York with 107 p...
HVS Market Pulse: Kalispell and Whitefish, Montana
Desiree Flanary | January 31, 2020
By Desiree Flanary and Lauren Reynolds Kalispell Due to Kalispell’s proximity to Glacier National Park, the region’s local economy is largely tied to tourism and is highly seasonal. Kalispell is home to 22 open and operating hotels, encompassing 1,885 guestrooms. Of those 22 hotels, four of them (totaling 348 guestrooms) have opened in the last six years, accounting for an 18% increase in hotel rooms in less than a decade. These new properties include a SpringHill Suites by Marriott, Country Inn & Suites by Radisson, and MyPlace, which opened in 2016, 2018, and 2019, respectively. The property types in this market range from economy...
Occupancy Softens in London’s Hotels in Q4 2019, Says Hotel Market Tracker
HVS | January 30, 2020
30 January 2020, London: Hotels in London saw RevPAR growth of 0.9% in Q4 2019, to £135.25 compared with the previous year, according to the latest UK Hotel Market Tracker: Q4 2019, produced by HVS London, AlixPartners and STR. Average occupancy for hotels in the capital dropped back slightly in the final quarter of the decade to 84.8%, although average room rates rose 1.9% to £159.53. The UK’s regional hotels saw RevPAR [rooms revenue per available room] fall in the quarter, down 2.7% to £50.73 and occupancy down marginally to 73.6%, while room rates fell by 2.1% to £68.94. “Softening occupancy will be a concern in London, p...
Hotel Values Moderate, Cap Rates Stable
Suzanne Mellen | January 28, 2020
Supported by lower interest rates, transaction activity held up during a year of uncertainty. This article addresses recent trends in hotel sales and capitalization rates, the course of hotel values since the last downturn, and the outlook for 2020. By Suzanne Mellen Despite increasing concerns about a global economic slowdown, the trade war, and geopolitical risks, the U.S. hotel transaction market remained healthy and active in 2019. According to preliminary data generated by Real Capital Analytics (RCA), total sales volume declined by 15%, from $43.6 billion in 2018 to $37.1 billion in 2019, though as will be illustrated, the declin...
U.S. Hotel Construction Pipeline Finishes 2019 Trending Upward
Lodging Econometrics (LE) | January 28, 2020
January 28, 2020 – PORTSMOUTH, NH - At the close of 2019, analysts at Lodging Econometrics (LE) report that the total U.S. construction pipeline continues to grow with 5,748 projects/708,898 rooms, up 4% by projects and 6% by rooms year-over-year (YOY). The pipeline has now completed its eighth consecutive year of growth. These robust year-end counts are a mere 135 projects/76,649 rooms shy of the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008. Projects under construction continue to rise reaching an all-time high of 1,768 projects with 237,362 rooms, up 7% by projects and 10% by rooms, YOY. Projects...
Los Angeles Has the Largest Hotel Construction Pipeline in the United States
Lodging Econometrics (LE) | January 27, 2020
January 27, 2020 – PORTSMOUTH, NH – In the most recent Lodging Econometrics (LE) Construction Pipeline Trend report on Los Angeles, LE states that Los Angeles has a total of 168 projects/28,501 rooms in the construction pipeline, the largest pipeline of any market in the U.S. Of this total, hotels presently under construction are at 46 projects/7,064 rooms, projects scheduled to start construction in the next 12 months are at 56 projects/9,199 rooms, and those in early planning are at 66 projects/ 12,238 rooms. If all of the projects in the pipeline come to fruition, this will increase the city’s guest room supply by 27.1%. The thr...
Do Dual-Branded Hotels Outperform Single-Branded Hotels?
Chekitan S. Dev | January 22, 2020
By Chekitan S. Dev and Eva Steiner Dual branding of hotels has become a growing industry practice. Beyond the potential marketing benefits of the dual-branding strategy, this paper tests whether dual-branded hotels operate more efficiently than comparable single-branded hotels (and therefore deliver better bottomline results). Comparing a proprietary longitudinal data set on the operating performance generated by dual-branded hotels in the U.S. against a set of comparable single-branded hotels, we document mixed results. While dual- and single-branded hotels achieve similar occupancy percentages, dual-branded hotels generate higher avera...
Labor Optimization Is Critical to Reducing Soaring Costs and Maximizing Profitability
Hospitality Upgrade | January 20, 2020
Seven practical ways to optimize the hotel workforce By Fran Worrall Labor costs are historically the largest costs for hotels, and in recent years they have far outpaced RevPAR gains, fueled by a number of factors, including low unemployment rates, higher mandated minimum wage requirements and soaring benefit costs. In November 2018, for example, the City of Oakland, Calif., approved an amendment increasing the hourly minimum wage for hotel employees from $13.23 to $15 with healthcare benefits or $20 without benefits. According to the U.S. Bureau of Labor Statistics, hourly compensation levels for hospitality employees increased by an ...
5 Events That Influence Hotel Performance
HotStats | January 13, 2020
In 2008, when the U.S. economy took a nosedive, Wall Street execs weren’t the only ones panicking. Hoteliers across the country had to brace themselves for impact. On its face, the Great Recession that followed would mean less leisure and corporate travel, tighter wallets and empty rooms. However, the operations that survived were able to roll with the punches. They dug into the data and adjusted costs to increase profit. Even though the 2008 crash—a so-called “black swan event”—was in a class of its own, it’s not uncommon for events to influence the hotel industry. And each event serves as a miniature lesson for hoteliers. ...
Tough Year Ahead for UK Hoteliers With Key Issues to Tackle
HVS | January 7, 2020
HVS identifies five key issues that hotels need to consider moving into the new decade, including the fact that travellers are now expecting a more personal service, the issue of corporate responsibility and the importance of attracting and retaining good staff UK hoteliers face a tough year in 2020 with a growth in rooms supply increasing competition and dampening revenues despite underlying demand remaining strong, according to global hotel consultancy HVS. “Hotels in the UK provinces found 2019 challenging and there seems to be little opportunity to improve this performance in 2020,” commented HVS London chairman Russell Kett. ...
2019 HVS Performance Report: Spa Department
Rodney G. Clough | January 6, 2020
By Rodney Clough, Mia Mackman On average, spa and wellness departments run profitably and can contribute significantly to a hotel’s bottom line. This report is our second annual performance report published by HVS that tracks and monitors spa department performance and profitability. The data presented reflect spa operating-statement averages and data points from 2018 through the third quarter of 2019. Across HVS’s 40 U.S. locations, our expert associates are continually consulting on hotels and resorts with significant spa and wellness operations, which are captured within their own departmental statement on an operating profit and...
U.S. Hotel Profit Bounces Back After Downward Blip
HotStats | January 3, 2020
A negative profit turn for U.S. hotels in October gave way to robust growth in November, as GOPPAR climbed 6.1% year-over-year, the second-highest increase of 2019, according to data from HotStats. While profit growth was strong in the month, year-to-date it is somewhat muted, up only 0.3%. November was a strong revenue story, particularly on the food & beverage front. RevPAR was up 1.7% YOY, led by a 1.0% uptick in average room rate, while F&B RevPAR was up 4.1%. The combination resulted in a 3.2% YOY increase in total revenue, which is now up 1.5% YTD. Declining expenses, although, were not reason for the robust profit grow...
