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
Africa: The Land of Opportunity
Sofie Otto | January 30, 2018
By Sofie Otto, Tim P. Smith 2017 was full of triumphs and disappointments on the African continent. Some countries that had a positive outlook at the beginning, turned into the problem children of Africa and countries that seemed hopeless in the beginning, surprised us in the end. This article provides a brief summary of some of the most significant events of 2017 and commentary on how 2018 may evolve in the fast-developing world that is Africa. Trump's remarks have shown the need for Africans to independently take responsibility for their actions, resolve issues, help each other and above all, not rely on others who do not truly unders...
Fitch: Hotel Oversupply Raising US CMBS Loan Concern
Fitch Ratings | January 30, 2018
Early warning signs of declining hotel performance have emerged, says Fitch Ratings. Fitch has seen an increase in the volume of hotel loans transferring to special servicing and performance metrics in seven of the top US metropolitan markets are under pressure by oversupply. However, we expect revenues across the broader US market to grow through the end of 2018, albeit slowly, and the impact on CMBS to be limited this year. Fitch began to observe signs that the US hotel market was peaking in 2014. In the second half of that year, we began to cap revenue per available room (RevPAR) in our ratings analysis to address cash flow sustainab...
Marriott, Hilton and IHG Lead U.S. Construction Pipeline Comprising 69% of Total Pipeline
Lodging Econometrics | January 29, 2018
January 29, 2018 – PORTSMOUTH, NH – According to the recent United States Construction Pipeline Trend Report from Lodging Econometrics (LE), the franchise companies with the largest construction pipelines are; Marriott with 1,410 Projects/180,647 Rooms, Hilton with 1,287 Projects/144,958 Rooms and IHG with 831 Projects/84,865 Rooms. These 3 franchise companies comprise 69% of all projects in the Total Pipeline. The largest brands for each of these companies are: Marriott's Fairfield Inn with 303 Projects/29,051 Rooms and TownePlace Suites with 208 Projects/21,299 Rooms; Hilton's Home2 Suites with 355 Projects/37,188 Rooms an...
Marriott Boasts Largest Franchise in U.S. Construction Pipeline with 1,410 Projects Total
Lodging Econometrics | January 25, 2018
January 25, 2018 – PORTSMOUTH, NH – Marriott International currently has the largest construction pipeline of any franchise company in the U.S. with 1,410 Projects/180,647 Rooms. Their largest brands in the Total Pipeline are: Fairfield Inn with 303 Projects/29,051 Rooms, Residence Inn with 199 Projects/24,680 Rooms and TownePlace Suites with 208 Projects/21,299 Rooms. Marriott has the most rooms currently Under Construction with 502 Projects/68,119 Rooms, which represents more than 1/3 of all Pipeline rooms Under Construction. Additionally, they have the most rooms Scheduled to Start Construction in the Next 12 Months with ...
HVS Market Pulse: Downtown Los Angeles
Greg Mendell | January 25, 2018
By Greg Mendell and Jessica White Downtown Los Angeles (DTLA), the Central Business District of the city of Los Angeles, covers the area bounded by Interstate 110, Interstate 10, and the Los Angeles River. In the last two decades, attractions like the Staples Center, Walt Disney Concert Hall, and the $3-billion L.A. LIVE entertainment complex have helped reestablish DTLA as a popular destination. In recent years, several multi-unit residential and commercial developments have changed the landscape significantly. The mixed-use Metropolis project (now under construction), the redevelopment of the BLOC retail center, and the addition of th...
Impact of Countervailing Forces on Hotel Values and Cap Rates
Suzanne R. Mellen | January 24, 2018
By Suzanne R. Mellen After more than five years of relative stability, new factors are at play in the hotel investment market that will affect hotel capitalization rates and values in a changing economic landscape. Hotel sales transaction activity declined in 2017, while cap rates continued to rise modestly, and hotel values held stable. The outlook for 2018, while uncertain because of the changing political and economic landscape, is more positive than a year ago due to the tax reform's favorable treatment of commercial real estate and a more optimistic business environment. This article presents recent trends and a sensitivity analysi...
The Year-End U.S. Hotel Construction Pipeline Continues Its Upward Growth Trend, Projects Up 4% YOY
Lodging Econometrics | January 24, 2018
January 24, 2018 – PORTSMOUTH, NH – According to the year-end U.S. Construction Pipeline Trend Report from Lodging Econometrics (LE), the pipeline stands at 5,151 Projects/623,695 Rooms, up 4% by projects Year-Over-Year (YOY). There are 1,544 Projects/200,632 Rooms Under Construction, up 2% by projects YOY. Projects Scheduled to Start Construction in the Next 12 Months, at 2,101 Projects/245,214 Rooms are down 12% by projects YOY. Projects in Early Planning are at 1,506 Projects/177,849 Rooms, up 44% by projects YOY. The rapid growth of new brands announced by major franchise companies in 2017 contributed to the increase in ...
IHG Signs with Europe Trading Investment Company Limited for Hotel Indigo Saigon The City Set for 2019 Opening in Vietnam
IHG | January 19, 2018
As one of South East Asia's fastest-growing destinations, Vietnam has seen a rise in visitors seeking authentic and truly memorable experiences. Poised to meet the needs of curious travellers, IHG® (InterContinental Hotels Group), one of the world's leading hotel companies, has signed a management agreement with Europe Trading Investment Company Limited for Hotel Indigo Saigon The City. This is the second Hotel Indigo to be signed in Vietnam, and will be the country's first when it opens its doors in 2019. The new-build hotel will boast a central location along District 1's Ly Tu Trong Street, just six kilometres away from the airpo...
January 2018 Lodging Insights Video Presented by CBRE
CBRE Hotels' Americas Research | January 19, 2018
Mark Woodworth and Jack Corgel discuss the changing profile of U.S. travelers, and how that has impacted lodging demand. ...
Visit U.S. Coalition Launches Amid Drop in U.S. Share of Global Travel
Visit U.S. Coalition | January 17, 2018
WASHINGTON—Trade groups representing thousands of businesses and millions of jobs on Tuesday announced the official launch of the Visit U.S. Coalition, whose aim is to partner with the Trump administration to reverse the decline in U.S. competitiveness for international travel dollars. The dip in U.S. market share is a hindrance to the president's economic goals, which the Visit U.S. coalition intends to help correct. Research prepared for Visit U.S. by the U.S. Travel Association shows that while global travel volume increased 7.9 percent from 2015 to 2017, the U.S. slice of that growing pie fell from 13.6 percent to 11.9 percent...
PwC: Global Economic Growth in 2018 on Track to Be Fastest Since 2011
PwC | January 16, 2018
The main engines of the global economy - the US, emerging Asia and the Eurozone - are expected to contribute almost 70% of economic growth in 2018 compared to their post-2000 average of around 60%. Growth in the Eurozone is predicted to be above 2% in 2018, as PwC expects the peripheral economies to outpace the core for the fifth consecutive year. Of the larger Eurozone economies, the Netherlands is expected to lead the way with economic growth at around 2.5%. By contrast, uncertainty relating to Brexit is expected to drag on UK growth, which is predicted to be 1.4% in 2018. Barret Kupelian, senior economist at PwC, comments: "In 2...
In Memoriam: HVS’s Michael Brophy
January 11, 2018
Atlanta, GA: HVS is deeply saddened to announce the sudden passing of Michael Brophy, Managing Director, Senior Partner of HVS Atlanta. A 14-year veteran of the firm, Mike established the HVS presence in Atlanta, a city he and his family came to love. According to Rod Clough, MAI and President of HVS Americas, "Mike was a true leader and friend. From the start of his HVS career, he was one of the most dedicated team members, working long hours when needed and with the best attitude. When an opening presented itself in Atlanta, he stepped up and took on a new leadership position with the firm, transcending into that role well beyond expe...
Casual Dining: A Fresh Perspective
Bill Conn | January 10, 2018
By Bill Conn and Greg Palmer Restaurant industry studies and reports have brought much attention to the shift in consumer choices and the flattening of year-over-year same store sales growth that the Casual Dining segment has been experiencing in recent years. However, there are still many exciting growth opportunities and ways that Casual Dining can flourish. Overall the restaurant industry is on the rise, with sales for 2017 expected to peak at around $800 billion according to the National Restaurant Association's 2017 Outlook report. While Full Service (which includes Casual Dining) is seeing a decline in sales growth the Full-Servic...
HVS Market Pulse: Fort Worth, Texas
Hunter Dietz | January 3, 2018
By Hunter Dietz , Kathleen D. Donahue Anchoring the west end of the Dallas/Fort Worth Metroplex, Fort Worth features the old and the new. Also known as "Cowtown," the cattle industry initially spurred economic development in the city. Today, glass and steel skyscrapers share the sidewalks of Downtown with renovated historic districts, such as the Fort Worth Stockyards National Historic District and Sundance Square. The following article details new developments in and around Fort Worth's primary neighborhoods that affect the area's hotel industry. Fort Worth's Economy Despite plummeting oil and gas prices and increased activity in o...
HVS Market Pulse: Seattle, Washington
Kirsten Z. Smiley | January 2, 2018
By Kirsten Z. Smiley My, oh, my! The famous catchphrase coined by Seattle Mariners' longtime sportscaster, Dave Niehaus, is ever so fitting as we look at how Seattle has changed over the last ten years. Seattle enjoys a diverse economy rooted in manufacturing, biotechnology, high technology, telecommunications, health care, and tourism. Metro Seattle, especially Downtown Seattle and Bellevue, is experiencing a period of exponential growth anchored by tech giants, such as Amazon, Microsoft, Google, and Expedia. The area is also home to several Fortune 500 companies, such as Boeing, Costco, PACCAR, Weyerhaeuser, Starbucks, and Nordstrom. ...
Closing Out 2017, North American Hoteliers See Solid Gains in Rates and Bookings
TravelClick | January 2, 2018
All Travel Segments End Year with Strong Revenue Per Available Room (RevPAR) in Q4 NEW YORK – January 2, 2018 – TravelClick, a leading global provider of data and revenue-generating solutions for hoteliers, today announced new data from the Company's December 2017 North American Hospitality Review (NAHR). According to this data, as North American hoteliers transition from 2017 into the New Year, all travel segments in the fourth quarter of 2017 are experiencing growth in both average daily rates (ADR) and bookings, up 1.2 percent and 4.3 percent, respectively. TravelClick also found that RevPAR for these segments is up a not...
China – Hotel Asset Management in Numbers
Daniel J Voellm | December 28, 2017
By Daniel J Voellm ABSTRACT A period of irrational hotel development drive by ulterior motives has seen properties being built that are not economical in operations, use of real estate and ultimately investment. The industry must depart from its obsession with full-service hotels and embrace more realistic investment criteria, should hotels ever become a trading asset class with reasonable liquidity, attracting investors from around the globe. Controlling labor cost is paramount and too many properties cannot drive sufficient business to justify their expenses. Most hotels are too large, both in number of units and gross floor area and ...
Reorganizing Spa Operations to Leverage Automation and Technology
December 27, 2017
By Mia A. Mackman This article reviews the impact and importance of integrating these systematisations to help stimulate and streamline the functionality and profitability of hotel and resort spa operations. Retooling the focus from manually centered services and embracing advancements in new technologies to support sustainable profitability and continued growth. Interpersonal Service and Talent Drought Spa treatments and correlating services are customarily viewed as manual-therapies with an important emphasis on the unique interface between (a client and a provider). This person-to-person relational component is a critical measure tha...
HVS Market Pulse: Detroit, MI
Brandon Leversee | December 21, 2017
By Brandon Leversee The Detroit metropolitan area has experienced significant economic growth in recent years, fueled by a strengthening auto industry as well as the continued diversification of the local employment landscape. The hotel sector is benefitting from existing employers expanding operations locally and new entrants to the market. The Big Three automakers continue to invest in the region, while companies like e-commerce giant Amazon.com Inc. are building large warehouse facilities. Revenue gains for hotels were accordingly robust during the 2010–2016 period. Revenue per available room (RevPAR) during that stretch grew n...
CBRE Hotels Arranges Sale of the Radisson Hotel San Diego-Rancho Bernardo
CBRE Group, Inc. | December 21, 2017
CBRE Hotels' Fifth Southern California Hotel Transaction in the Last Three Months San Diego, California – December 21, 2017 – CBRE Hotels arranged the sale of the 178-room Radisson Hotel San Diego-Rancho Bernardo, located at 11520 West Bernardo Court in San Diego, California for an undisclosed price. CBRE Hotels represented the seller, an affiliate of San Diego-based Pinnacle Hotels USA Inc., while the buyer, KASHL Corp, represented themselves. The buyer has selected RAR Hospitality to manage the hotel. Opening in 1989, the three-story hotel sits on 3.61 acres and offers approximately 4,000 square feet of meeting space, an o...
HVS Market Pulse: Anaheim/Garden Grove
Li Chen | December 20, 2017
By Li Chen The market is experiencing a period of economic strength and expansion, primarily led by the tourism and leisure industry and the presence of Disneyland and the Anaheim Convention Center, which continue to attract visitors and bolster lodging demand. Major Economic Contributors & Developments Disneyland Resort Disneyland is undoubtedly a prominent demand generator for hotels in Orange County, attracting over 15 million leisure visitors per year. Disneyland's 60th anniversary celebration, which began in May 2015 and concluded in September 2016, induced a significant amount of demand, making 2015 a banner year for the m...
5 Ways Hotels Can Use Behavioral Economics to Improve Conversion Rates
Gautam Lulla | December 20, 2017
By Gautam Lulla Understanding the rationale behind consumer decision-making has long been an obsession for marketers. Popularized today as behavioral economics, brands such as Amazon and Netflix invest millions into understanding the psychology of their consumers shopping habits in order to drive purchases. In the travel industry, OTAs also build their platforms around principles of buying psychology to boost conversion rates. Yet far from being a secret or expensive investment, many of these same principles can be applied by hotels. In the following post, we'll look at 5 ways hotels can use behavioral economics with actionable examples...
HVS Market Pulse: Center City Philadelphia
Kim Lindell | December 19, 2017
By Kim Lindell , Scott Killheffer Philadelphia lays claim to many firsts in the U.S., including the first state capital, public library, hospital, stock exchange, and even the nation's first zoo. Today, revitalization efforts continue to fuel the city's engine of innovation, building on a base of airport, tourism, education, and convention demand drivers. Strong group demand in recent years, combined with rising levels of transient corporate and leisure travel, has boosted occupancy and average daily rate (ADR), especially within Philadelphia's Center City submarket. Major Economic Drivers Center City Philadelphia, which includes the Ce...
How the Composition of RevPAR Growth Impacts Changes in Profits
Robert Mandelbaum | December 18, 2017
By Robert Mandelbaum To project changes in profits we obviously need to look at the expected relative changes in revenues and expenses. Profit growth can only be realized when the dollar value of the change in revenue exceeds the dollar value of the change in expenses. Within the lodging industry, there are other metrics that have historically been reliable indicators to measure the potential for hotel profit growth. One is the change in rooms revenue, or RevPAR. Using data from our annual Trends® in the Hotel Industry, we find an 86 percent correlation between annual changes in RevPAR and Gross Operating Profit (GOP) from 1960 to 2...
