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
Equity Yield Rates on the Decline
J. Carter Allen | October 19, 2018
by J. Carter Allen, Rodney G. Clough HVS continually tracks the rates of return on the assets that we consult on. In our most recent review, we found that equity yield rates, on average, have been declining, due in part to the expectation of slowing EBITDA Less Replacement Reserve growth. The sample size of available data is also a contributing factor. Equity yield rates were notably lower for full-service and luxury hotels, averaging 16.8% for the year-to-date 2018 period (below the 17.7% level recorded for 2017), driven largely by a lower number of total transactions of this asset type, coupled with an increase in full-service sales o...
Disaster-Related Hotel Business Loss Recovery – Unique Challenges
Mark Earle | October 18, 2018
By Mark Earle Hurricanes Michael and Florence are both gone, but the extent of their destruction is now coming into clearer focus. Michael-caused losses in property and income are estimated to be $15 to $21 billion, according to Moody's Analytics. Boston-based insurer Karen Clark & Company (KCC) released an estimate of $3.7 billion for storm surge alone. KCC's catastrophe models estimate that Hurricane Michael caused about $8 billion in privately insured losses, which do not include losses covered by the National Flood Insurance Program. While Michael was the fourth-strongest storm to hit the U.S. since record-keeping began 1951, it...
How Hotels Can Compete in the Airbnb Landscape
Mia A. Mackman | October 17, 2018
By Mia A. Mackman Airbnb came on the scene in 2008, amidst corporate scandal, economic downturn and instability. Initially people were skeptical, but Airbnb has gained remarkable momentum building its platform with transparency and trust, at a time people were greatly seeking both. In the early years, Airbnb's inclusive and diverse model provided low-cost travel options with uncommon flexibility, which became an enticing alternative to the traditional big-name hotel booking systems. The social component and owner-intimacy of Airbnb also intrigued adventurous solo travelers, seeking more local and organic destination experiences. The...
GCC Countrywide Hotel Performance Indicators
HVS | October 16, 2018
GCC countries have supported and grown inbound tourism in the last 15-20 years. The GCC region continues to drive growth and investment opportunities and HVS remain confident that accommodated room night demand will grow despite the aggressive development pipeline. GCC Countrywide Occupancy Historic (1998-2017) and Forecast – 5 Year Average 5 Year Average GCC Countrywide Occupancy with HVS Forecast Source: HVS Research A number of demand generators will induce additional room nights in each of the GCC countries over the next 5 and 10 years. Specifically, we forecast occupancy in Qatar to average 66% on account of the ongoing deve...
GCC Hotel Development Cost Trends
HVS | October 11, 2018
Analyzing historical trends, the key reason behind escalating costs per key continues to be low in efficiency and utilization of space. Price per sqm of total built up area remains largely the same and therefore it is crucial that any design optimizes the turnover per sqm of built areas. HVS provides an indicative reasonable range of BUA per asset type. Hotel Development Cost Source: HVS Research With the exception of Budget & Midscale Hotels which focus on efficient & flexible design, development cost per key for all other hotel classes have increased between 10%-20% since 2013, resulting in lower project returns. We consider ...
Okada Manila Selects Rainmaker Solution Suite to Drive Guest Bookings, Outperform Competitors and Increase Profitability
Rainmaker | October 9, 2018
Luxury Property Chooses Rainmaker's Industry-Leading Revenue Optimization Suite ALPHARETTA, GA. — October 9, 2018 — The Rainmaker Group (Rainmaker), a leading provider of cloud-based hospitality revenue management software, today announced that Okada Manila has selected a comprehensive solution suite, including guestrev®, grouprev®, revcaster® and revintel®, to optimize hotel revenue and drive competitive advantage at the 993-room world-class luxury property. The agreement marks Rainmaker's expansion in the Asia-Pacific hospitality market. Okada Manila, the largest casino resort in the Philippines, is a popul...
Lodging Econometrics’ Patrick H. Ford Receives Lifetime Achievement Award at The Phoenix Lodging Conference
Lodging Econometrics (LE) | October 5, 2018
October 5, 2018 – PORTSMOUTH, NH - Patrick H. Ford, Chairman, CEO, and Founder of Lodging Econometrics (LE) and New England Hotel Realty (NEHR) of Portsmouth, NH, has received the 2018 Lifetime Achievement Award for the hospitality industry, which was presented at The Arizona Biltmore on September 25, 2018. The Lodging Conference's founder and producer, Harry Javer and hospitality veteran Michael A. Leven, chairman and CEO of Georgia Aquarium, presented the award to Ford. Nearly two thousand industry members were in attendance at this year's conference. The prestigious Lifetime Achievement Award recognizes an individual who ha...
Hotel Industry – Q4 2018 and Beyond
Robert A. Rauch | October 3, 2018
By Robert A. Rauch Many of us who attended The Lodging Conference this past month heard Bernard Baumohl, Chief Economist for the Conference Board, provide his economic forecast. He covered topics in his usual fast, effective and entertaining style. Some interesting takeaways were that business spending is not up much, oil is going to see oversupply and is up markedly due to politics (not the market), and GDP will be up 3 percent this year, 2.2 percent next year and 1.4 percent in 2020, according to the Consensus Forecast. Baumohl's concerns include President Trump, cyber warfare, geopolitical threats and a real need for corporate agilit...
Travel Trends Index: Domestic Travel a Bright Spot, but Int’l Inbound Projected to Decelerate
the U.S. Travel Association | October 3, 2018
WASHINGTON (October 3, 2018)— Travel to and within the U.S. grew 3.8 percent year-over-year in August, according to the U.S. Travel Association's latest Travel Trends Index (TTI)—marking the industry's 104th straight month of overall expansion. Despite the positive trend, U.S. Travel economists remain wary that the decelerated rate of international inbound travel will cause the U.S. to fall even further behind its global competitors. Most notable in the TTI is the strength of domestic leisure and business travel, supported by strong consumer spending and consumer confidence reaching heights last seen in 2000. Both do...
Market Pulse: Orange County Beaches, CA
Marcus R, Lee | September 27, 2018
By Marcus R. Lee, Steven Kim, Eric Yiankes Whether it's manicured beach towns or celebrated theme parks, Orange County stands out as one of California's most iconic destinations. Located about an hour south of Downtown LA and two hours north of San Diego, Orange County remains a novelty for visitors and locals alike. Orange County relies on tourism, state and local government activity, and renowned institutions of higher education for its economic livelihood. The Newport Beach, Huntington Beach, and Costa Mesa hotel submarkets have experienced varied activity over the last three years, with transactions, renovations, and re-brandings, a...
2018 HVS Lodging Tax Report – USA
Thomas A Hazinski | September 26, 2018
By Thomas Hazinski, Anthony Davis and Daniel Kremer In this 7th annual Lodging Tax Report, HVS explores the current status and historical trends of lodging taxes in the USA. This updated version provides lodging tax rates/collections on all 50 US states and 150 US cities. Download the Lodging Tax Report here. ...
What Do Hotel Guests Really Want? Anticipated Versus Actual Use of Amenities
Chekitan S. Dev | September 25, 2018
by Chekitan S. Dev, Rebecca W. Hamilton, Roland T. Rust, and Matthew V. Valenti Abstract: Hotels provide a lengthy menu of amenities based on the (largely accurate) perception that guests want those amenities and claim they will use them. While many guests do exactly that, a substantial percentage will "overpredict" which amenities they will use. This study of fifty hotel-wide and in-room amenities details both the overpredictions and, in some cases, underpredictions of amenity use by 724 guests in thirty-three hotels operated by six hotel brands—one upscale, two upper upscale, and three luxury—belonging to one hotel company...
Key Takeaways: AHLA & AAHOA’s – Legislative Action Summit 2018
Chelsey Leffet | September 25, 2018
By Chelsey Leffet This year's Legislative Action Summit (LAS), held every year by the American Hotel and Lodging Association (AHLA) and the Asian American Hotel Owners Association (AAHOA), took place September 12–13 in Washington, D.C. Year after year, this event brings together a strong showing of hotel owners, operators, developers, investors, managers, and employees, as well as experts in government affairs and others interested in the lodging industry. Hurricane Florence did not deter the many industry professionals from traveling to D.C. to meet with their congressional representatives on "The Hill." The event included remark...
How to Play (and Win) the Long Game in Group Sales
Groups360 | September 24, 2018
Meeting planners don't want to work with a salesperson. They want a reliable, long-term partner in planning. Someone who can brainstorm ideas, come up with realistic solutions, and bring value to the table event after event. Delivering lasting value is vital to building this type of relationship. However, most group sales managers wait until they're actively wooing the client to be helpful - within their proposal, during the site inspection or at the negotiating table. Instead, offer value for the long haul, not for quick conversions. Begin right at the beginning of the sourcing journey, then continue long after the event is ove...
Global Construction Pipeline Projects Have Been Ascending for 4.5 Years and Have Reached Record Highs
Lodging Econometrics (LE) | September 24, 2018
Correction: New numbers received from Choice Hotels Choice Hotels with 705 hotels and 58,512 rooms. CORRECTION: As of June 30, 2018 Choice has 1,024 hotels and 84,350 rooms in its worldwide pipeline. The 25-year explosion of hotel brands now totals 610 globally. Marriott leads with 29 labels, followed by Accor with 25, Hilton and Choice with 15 each, and IHG and Hyatt with 12 each. CORRECTION: As of June 30, 2018 Choice had 11 brands September 24, 2018 – PORTSMOUTH, NH – Lodging Econometrics (LE) has released its bi-annual Global Construction Pipeline Trend Report, which compiles the construction pipeline counts for eve...
Blurred Lines Between Hotels and Airbnb
Luigi Major | September 20, 2018
By Luigi Major In this new day in age, the meaning of travel has taken an interesting turn in terms of what is driving consumers away from home. The generation of material pleasantries has come and gone, and what people are really looking for these days are new and engaging experiences. Curiosity is driving interest away from the status quo. While the necessities, like having a great location, providing safety and security while keeping a high standard for quality, will always hold value, consumers are seeking ways to leverage their travel by experiencing and becoming one with the surrounding environment. A new fine line has been create...
Ten Years Later: Has the U.S. Lodging Industry Really Recovered?
Robert Mandelbaum | September 20, 2018
By Robert Mandelbaum and Keval Rama Lodging is a cyclical industry meaning that it passes over time through four distinct phases: peak, contraction, trough and expansion. Most industry participants believe that 2007 was the previous peak of the current business cycle following six years of expansion from the 2001 industry recession. According to STR, the demand for lodging increased for six consecutive years from 2002 through 2007, while average daily room rates (ADR) grew in excess of 4.5 percent during the latter four years. Per CBRE Hotels' Trends® in the Hotel Industry survey, gross operating profits (GOP) were growing at a 10 p...
Insights Into Chinese Travelers’ Hotel Habits and Preferences: Expedia Group Data
Expedia Group | September 20, 2018
Seattle, Wash., Sept. 20, 2018 – Expedia Group and Ipsos, a leading market research company, released findings from the Hotels.com™ Chinese International Travel Monitor (CITM) survey. The survey reveals hotel booking habits and preferences for the world's largest travel population, providing enormous potential for U.S. hotels to adapt to the evolving demands of Chinese travelers. China is the largest outbound travel market in the world, with 130 million outbound trips and a collective spend of more than $258 billion on international travel in 2017 according to UNWTO. Chinese millennials born after 1990 are pushing ...
North American Hoteliers Kick Off Second Half of 2018 With Continued Steady Rates and Bookings; Q2 2019 Shows Signs of Softness
TravelClick | September 20, 2018
NEW YORK – September 20, 2018 – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today released new data from the Company's August 2018 North American Hospitality Review (NAHR). According to this data, the second half of the year has stable rates and bookings across all travel segments, up 1.80 percent in average daily rates (ADR) and 0.51 percent in bookings in the third quarter when compared to the prior year. Group travel in Q3 is also up 1.81 percent in ADR and 0.50 percent in bookings, and the transient segment overall is up 1.80 percent in ADR and 0.52 percent in bookings i...
RIU Hotels & Resorts Acquires Building in London for Conversion to the Riu Plaza Brand
RIU Hotels & Resorts | September 19, 2018
Palma de Mallorca, 19 September 2018 - The hotel chain has just acquired a building in a premium area of the city, close to Victoria Station, which it plans to convert into a 4-star hotel as part of its Riu Plaza urban line. RIU Hotels & Resorts has bought a building in one of London's top neighbourhoods where, following a total refurbishment, it will open a hotel in its Riu Plaza urban line. The building is at 1 Neathouse Place, right next to Victoria Station, Westminster Cathedral and Buckingham Palace. By the end of 2020, the future Riu Plaza hotel in London will become the chain's first hotel in the United Kingdom, a country tha...
Budapest – On The Up
Magali Castells | September 18, 2018
By Magali Castells, Arlett S Hoff Budapest is the capital of Hungary and the ninth-largest city in the EU, with close to 1.7 million inhabitants in 2018. Budapest traditionally had a strong industrial focus, but has since shifted to the service industries including banking, finance and real estate. The city is also a cultural and historic centre, with several renowned monuments including UNESCO World Heritage sites such as the Buda Castle district and the banks of the Danube. The city is also filled with various museums, parks, squares and a variety of restaurants and bars, making it the perfect weekend destination. ECONOMIC INDICATORS...
Asia Pacific’s Construction Pipeline, Excluding China, Is in Its 5th Year of Growth and May Be Nearing Its Peak
Lodging Econometrics | September 17, 2018
September 17, 2018 - In a recent report, analysts at Lodging Econometrics (LE) report that Asia Pacific's total construction pipeline, excluding China, is in its 5th year of growth and is at an all-time high of 1,749 projects/369,045 rooms. These pipeline totals are up a remarkable 306% by rooms and 270% by projects from the cycle's low of 473 projects/90,946 rooms recorded in the first quarter of 2007 when LE first began tracking development in Asia. Countries in the region are facing strong economic headwinds. Economies are slowing and many currencies compared to the dollar are falling, adversely affecting real estate investment. The ...
All Suites Brands by Hilton Open 34 Properties, Ink 35 Hotel Deals in Q2 2018
Embassy Suites by Hilton | September 7, 2018
Category-leading brands capitalize on growing meetings/convention business with opening of new convention center locations; expand footprint of multi-brand hotels MCLEAN, Va. – September 7, 2018 – The All Suites brands by Hilton have continued their strong growth into Q2, opening 34 new hotels and bringing the total number of All Suites properties to nearly 1,000. The second quarter was marked by the All Suites brands entrance into several new convention center submarkets, and further expansion of the brand's footprint of multi-brand hotels. The All Suites brands also signed 35 hotel deals in the second quarter, continuing t...
To Q3 and Beyond: Hotel Industry Forecast for San Diego, Arizona, Colorado, and Other U.S. Markets
Robert A. Rauch, CHA | September 6, 2018
By Robert A. Rauch U.S. Economy Companies are reporting solid revenues as well as profits. Q2 Gross Domestic Product (GDP) was at 4.2 percent, the best quarter in five years. Business and consumer confidence and spending are strong and future growth for 2019 looks good. Interest rates and inflation have increased modestly, in sync with movements in the economy. Having said that, my favorite index is the Institute for Supply Management's Purchasing Management Index. That index fell to 58.1 in July, 2018 from 60.2 in June, below market expectations of 59.5. The reading pointed to the weakest expansion in the manufacturing sector in three ...
