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’s Hotel Construction Pipeline Soars to Record Highs With Impressive Double-Digit Increases Year-Over-Year
Lodging Econometrics (LE) | September 9, 2019
September 9, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that Europe’s hotel construction pipeline soared to record high counts in the second quarter of 2019 with 1,704 projects having 260,111 rooms, for a dramatic 23% increase in projects and 19% increase in rooms year-over-year (YOY). There are currently 819 projects/128,284 rooms under construction. Projects planning to start construction in the next 12 months stand at 496 projects/76,633 rooms and those in the early planning stage at 389 projects/55,194 rooms are both at all-time highs. All chain scales showed year-over-year increases and are at or near r...
Hotel Industry Supports More Than 1 in 25 American Jobs
AHLA | September 9, 2019
WASHINGTON (September 9, 2019) – Underscoring the significant economic impact and strong growth of the hotel industry, a new study released today finds that hotels support more than 1 in 25 American jobs—8.3 million in total—and contribute nearly $660 billion annually to U.S. GDP. Conducted by Oxford Economics, the study was sponsored by the American Hotel & Lodging Association (AHLA) and the American Hotel & Lodging Educational Foundation (AHELF) and showcases the breadth and depth of the hotel industry and its value to the communities we serve. The study is part of AHLA’s Dreams Happen Here campaign, which highlights the ...
Asia Pacific’s Hotel Construction Pipeline, Excluding China, Rises to a Record High in the Second Quarter of 2019
Lodging Econometrics (LE) | September 6, 2019
September 6, 2019 – PORTSMOUTH, NH – According to the recent report from analysts at Lodging Econometrics (LE), Asia Pacific’s total construction pipeline, excluding China, is at an all-time high and stands at 1,793 projects/393,732 rooms, up 3% and 7% respectively, year-over-year (YOY). The pipeline continues in a topping out formation despite slowing economies in the region and growth uncertainties in neighboring China. Asia Pacific, excluding China, currently has 972 projects under construction with a record high room count of 225,896. There are 405 projects with 81,592 rooms scheduled to start construction in the next 12 months a...
Travel Trends Index: International Inbound Travel Tumbles for Fourth Month This Year
U.S. Travel Association | September 4, 2019
Business travel rebounds to help sustain healthy growth of domestic market Washington — Travel to and within the U.S. grew 3.2% year-over-year in July, according to the U.S. Travel Association’s latest Travel Trends Index (TTI)—a slight rebound from June’s nine-month low. International inbound travel contracted once again in July, falling by 1.2%. The decline follows a disappointing June performance which saw the sector’s six-month trend fall below zero for the first time since September 2015. The Leading Travel Index (LTI), the predictive component of the TTI, projects international inbound travel growth will re...
How Many Rooms Is Too Many?: Per-Capita Demand and the Hotel Cycle
Adam R. Lair | September 4, 2019
By Adam Lair In a recent New York Times op-ed titled Why Rate Cuts Don’t Help Much Anymore[1], Austan Goolsbee, former economic advisor to President Obama, cited a study on the effect of Federal Reserve rate cuts on demand for mortgages, stating: Fundamentally, there wasn’t much pent-up demand for investment after years of low rates, accelerated depreciation, ‘temporary’ investment expensing, and other stimulus. The lack of pent up demand also means that cutting interest rates now is unlikely to entice businesses to invest much more. In other words, to summarize Goolsbee’s general point, rate cuts don’t unleash the same i...
Paris Hotel Market – A Rocky Start to the Year
Dayk Balyozyan | September 3, 2019
By Dayk Balyozyan & Sophie Perret Since our previous article in April 2018, the business environment in France has experienced positive change with a decrease in unemployment rate and an increase in purchasing power, following the ‘gilets jaunes’ disruption. The Economist Intelligence Unit forecasts modest GDP growth to pick up to around 1.5% for the foreseeable future. In terms of tourism, Paris enjoys an exceptionally well-balanced mix of business and leisure demand, which allows the City of Lights to have both a broad seasonality and strong average rate. Paris has remained, alongside London, one of the two most desirable destina...
China’s Hotel Construction Pipeline Continues to Expand, Setting an All-Time High, Despite Economic Slowdown
Lodging Econometrics (LE) | September 3, 2019
September 3, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that at the end of the first half of 2019, China’s total construction pipeline swelled to 2,991 projects/592,884 rooms, up 19% by projects and 7% by rooms year-over-year (YOY), both at all-time highs, amidst an economic slowdown. The China growth rate is expected to be 6.2% for 2019, the lowest reported since 1990. The rocky economic climate is due to high debt levels, a trade war with the United States and on-again, off-again discussions that add further to economic instability. China has 2,174 projects/407,594 rooms presently under construction, ...
U.S. GOPPAR Gains in July Illustrate Resiliency of Market
HotStats | August 29, 2019
Three Takeaways 1) The U.S. is bucking global profit trends with yet another month of strong GOPPAR gains. 2) Hotel operators are doing a great job of flow through as costs, particularly on the labor side, continue to mount on a month-to-month basis. 3) The worrying macroeconomic climate could have a blunting impact on profits, so hoteliers will have to show extra bottom-line vigilance as the year moves forward. Hotels in the U.S. achieved their sixth month of year-over-year profit growth for 2019, underpinned by a strong increase in revenue across the board, according to the latest data from HotStats. GOPPAR in July rose 2...
U.S. Hotel Performance Decelerates Through 2020, But 2021 Improves
CBRE | August 28, 2019
Atlanta – August 28, 2019 – Shifts in the depth and timing of an expected slowdown in the nation’s economy have impacted CBRE Hotels Research’s outlook for the U.S. lodging industry over the next few years. According to the September 2019 edition of Hotel Horizons®, CBRE’s forecasts for RevPAR changes in 2019 and 2020 have been adjusted slightly downward, but the outlook for 2021 has improved. “Changes in various components of the U.S. economy and their relationship to U.S. hotel demand fluctuations are well understood. This is what drives the econometric model that informs our forecasts for U.S. lodging market performance...
HVS Industry Statistics Update – Q3 2019
Jerod Byrd | August 27, 2019
By Jerod Byrd RevPAR across the U.S. strengthened 1.2% through the first half of 2019, and STR is projecting the calendar year to end at roughly 2.0%. Profit margins should remain generally stable in light of an increase in operating expenses, particularly attributed to rising labor costs in connection with low unemployment levels. RevPAR growth through the near- to mid-term is expected to come in the form of ADR growth, with occupancy remaining generally stable. As illustrated, while RevPAR is down slightly across the top 25 markets, all other markets are averaging 2.3% growth, which is moderately above the current inflationary rate of ro...
RevPAR High Note Shattered by Profit Din at UK Hotels
HotStats | August 26, 2019
In a scenario that’s becoming exceedingly familiar, and one that illustrates the frequent occurrence of revenue and profit misalignment, RevPAR at hotels in the UK hit a high in July, but GOPPAR turned negative, sapped by rising costs, according to the latest data tracking hotels from HotStats. July is historically a peak month for UK hotels, with high occupancy enabling premium pricing that helps fuel top-line performance. This year was no different, with hotels recording a 1.0% increase in RevPAR to £117.25, led by 86.6% room occupancy coupled with a 1.5% year-over-year increase in average room rate to £135.52. The growth in Re...
Israel’s Hotel Sector Shows Record Performance, Says HVS Report
HVS | August 22, 2019
22 August 2019, London: Hotels in Israel saw another record performance in 2018 as the country experienced a lull in geo-political turmoil and a rise in incoming tourist numbers, according to a new report by global hotel consultancy HVS. Over the past few years Israel has seen significant growth in its tourism sector. In 2017 the country welcomed 3 million tourists for the first time in its history. In 2018 that number rose to 4.1 million, a year-on-year increase of over 14%. On the back of this growth hotels across Israel saw RevPAR [*rooms revenue per available room] lift by 6% last year, driven largely by a healthy rise in average ro...
Canadian Lodging Outlook Quarterly 2019-Q2
About HVS Canada | August 21, 2019
HVS and STR 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. Source: STR Source: STR 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. ...
U.S. Hotel Interest Coverage / Robert Mandelbaum and John B. Corgel, Ph.D.
Robert Mandelbaum | August 20, 2019
By Robert Mandelbaum and John B. Corgel, Ph.D. According to the March 2019 edition of CBRE’s Hotel Horizons® forecast report, RevPAR growth for the U.S. lodging industry will be limited to under 2.5 percent through 2020. Further, CBRE is projecting a 0.6 percent decline in RevPAR for 2021 as CBRE expects the economy to slow down during the year. The combination of modest increases in revenue and rising operating expenses (especially labor) make hotel owners and operators nervous about their ability to enjoy profit growth the next few years. While the profit growth story is concerning, it should it should be noted that current GOP...
The Latin America Hotel Construction Pipeline Continues to Decline from Its 2016 Peak
Lodging Econometrics | August 20, 2019
August 20, 2019 – PORTSMOUTH, NH – According to the recent Latin America construction pipeline trend report from Lodging Econometrics (LE), the total construction pipeline is in its third year of decline by rooms and has 710 projects/123,392 rooms. 710 projects is the lowest number of projects in the pipeline since the fourth quarter of 2013. Projects presently under construction stand at 321 projects/56,228 rooms. Projects scheduled to start construction in the next 12 months stand at 208 projects/35,733 rooms, which is an all-time high for rooms, and those in the early planning stage are at 181 projects/31,431 rooms. In the secon...
Study: A Record 768 Million U.S. Vacation Days Went Unused in ’18, Opportunity Cost in the Billions
U.S. Travel Association | August 19, 2019
WASHINGTON American workers left a record number of vacation days on the table last year—768 million days, up 9% from 2017—according to new research from the U.S. Travel Association, Oxford Economics and Ipsos. Of the unused days, 236 million were forfeited completely, equating to $65.5 billion in lost benefits. More than half (55%) of workers reported they did not use all their allotted time off. While American workers are leaving more unused days on the table, they are also taking more days of paid time off; American workers took off an average of 17.2 days in 2017 and 17.4 days in 2018. Employment in the U.S. is st...
The Boston Lodging Market: What the Supply Surge Means Moving Forward
Sebastian Colella | August 19, 2019
At year-end 2018, the Boston and Cambridge lodging market was comprised of 105 hotels with approximately 24,000 rooms. While this has grown considerably in four years, lodging supply in this market remains small relative to other major gateway cities. The ongoing building boom in Boston and Cambridge has contributed greatly to the recent surge in lodging supply and is expected to continue through 2021 and beyond. What does the pipeline of hotel development, its largest in recent history, mean for the Boston lodging market’s performance? Recent & Continued Supply Growth Between 2000 and 2014, rooms supply in market increased at ...
The Raptors Won the NBA Title, But What City Won the GOPPAR Crown?
David Eisen | August 12, 2019
By David Eisen Sporting events typically serve as huge hotel demand generators for a city. And when the games are really meaningful—such as a playoff round or championship final—they become even hotter tickets, which means a greater need for hotel rooms—for guests who are attending the games and those who are there just to share in the experience. These high-demand times typically (should) equate to higher occupancy, higher rates and (hopefully) higher monthly profitability. The 2019 NBA Finals, which pitted the Toronto Raptors against the Golden State Warriors, was one of these events. For Toronto, it was especially satisfying si...
Q2 2019 Cvent Group Business Outlook Shows Continued Group Booking Slowdown
Cvent | August 9, 2019
Quarterly forward-looking report informs hoteliers of key market trends to help drive group business growth TYSONS, Va.--August 9, 2019 --In the latest Cvent Group Business Outlook, a 24-month forward-looking report highlighting United States group booking activity through the Cvent Supplier Network, data shows U.S. hotels will continue to face a challenging group business market. “While group booking pace has picked up slightly compared to last quarter’s report, the overall 24-month view is still fairly weak,” said Jeffrey Emenecker, senior director of analytics at Cvent. “As we look at the next two years, our sourcing data sh...
Canada’s Hotel Construction Pipeline Continues to Grow Hitting an All-Time High
Lodging Econometrics | August 9, 2019
August 9, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that at the close of the second quarter of 2019, the total construction pipeline in Canada hit an all-time high with 273 projects/35,787 rooms. Construction pipeline projects are up 14% and rooms are up a lofty 20% year-over-year (YOY). Currently, there are 92 projects/11,118 rooms under construction. Projects scheduled to start construction in the next 12 months stand at 95 projects/11,097 rooms with projects in the early planning stage at 86 projects/13,572 rooms, both stages hitting record high counts. In the first half of 2019, Canada opened 28 new ho...
RevPAR Jump Can’t Prevent GOPPAR Slip Across Europe
HotStats | August 7, 2019
In a clear example that revenue and profit aren’t always aligned, RevPAR at mainland European hotels attained a high for the year in June, but GOPPAR fell. Falling ancillary revenues and rising costs stymied gains made in rooms from flowing through to the bottom line, according to the latest data tracking full-service hotels from HotStats. At €158.82, RevPAR was a high for 2019 and also exceeded the previous peak of €157.09 from June 2018. The spike was led by a 1.4-percentage-point year-on-year increase in room occupancy to 82.5%, and was in spite of a 0.5% decline in achieved average room rate, which fell to €192.61. How...
Q2 2019 U.S. Lodging Market Update
Daniel Lesser | August 6, 2019
By Daniel Lesser With 121 consecutive months of growth through Q2 2019, the U.S. economy is now in record territory for the longest expansion period in history. The decade long economic expansion has been fueled in part by job growth, record low unemployment rates, and low interest rates in the capital markets. During the first half of 2019, America has continued to add jobs, albeit at a slower pace compared to last year. U.S. consumer confidence remains vigorous and stock market indices continue to set record high levels. To mitigate the risks of slower global growth and trade-policy uncertainty, during the near term, the Federal Reserve ...
Survey Says: Young Business Travelers Prefer Solo Sightseeing and Social Workspaces
Hilton Hotels & Resorts | August 6, 2019
MCLEAN, Va. -- August 6, 2019 -- As Hilton Hotels & Resorts continues to innovate its offerings for the next generation of business travelers, the flagship brand is releasing new survey findings uncovering the travel highs and lows for young professionals, ages 23-35, who attend meetings while on the road. The survey revealed that, while young business travelers prefer a buzzing social environment and in-person interactions during regular work hours, they would rather spend their evenings on their own. Hilton previously conducted research unveiling that business travel is a major work perk among this group. This year, the findings f...
Travel Trends Index: Travel Posts Worst Overall Performance in Nine Months
U.S. Travel Association | August 6, 2019
Leisure travel growth offset by flat business segment and contraction in int'l inbound travel WASHINGTON -- August 6, 2019 -- Travel to and within the U.S. grew 2.4% year-over-year in June, according to the U.S. Travel Association's latest Travel Trends Index (TTI)—travel's worst performance since September 2018. Most concerning is the 0.8% contraction of international inbound travel, which brought the sector's six-month trend below zero for the first time since September 2015. This drop in international inbound travel follows Friday's news that travel employment tumbled in July, losing 2,500 jobs despite the relative strength of th...
