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
The HVS Quarterly Hong Kong and Macau Update
Christy Tung | August 30, 2017
By Christy Tung and Daniel J Voellm The reverberation from the sharp declines in mainland China visitor arrivals post-2014 echoed into the first quarter of 2016, negatively impacting hotel markets across the region, especially in Hong Kong and Macau. Given that both cities are less than an hour away from mainland China, they suffered from the new restrictions placed on Chinese citizens. For Hong Kong, this included a limit to one visit per week from neighbouring Shenzhen, and for Macau, a stricter control over gaming activities to reduce corruption. However, the market appears to have bottomed out and growth is beginning to stabilize. H...
Top 6 Hotel Success Factors
Luigi Major | August 29, 2017
By Luigi Major What makes some hotels more successful than others? It is true that the selection of a site, market, brand, and management team are crucial to the success of a property. But after many years at HVS in the Consulting & Valuation division, and hundreds of consulting assignments later, I contemplated the question, "Aside from these things, what really makes some hotels work?" In this article, I share what I believe to be some of the most important factors that must be considered in the acquisition or development of a hotel, which ultimately lead to a property's financeability, profitability, and long-term success. I have...
Louisiana’s Kyle Edmiston Wins 2017 State Tourism Director of the Year
U.S. Travel Association | August 29, 2017
MINNEAPOLIS (August 29, 2017)—Kyle Edmiston of the Louisiana Office of Tourism has been named national State Tourism Director of the Year for 2017. Edmiston was announced as the honoree before more than 850 of his peers at the U.S. Travel Association's annual ESTO conference, held this year in Minneapolis. The U.S. Travel Association's National Council of State Tourism Directors—a body representing the tourism offices of all states and U.S. territories—votes on the award annually ahead of ESTO, the premier annual gathering for destination marketing professionals. "Louisiana tourism numbers are stronger tha...
Workers Who Start in Travel and Tourism Achieve Higher Peak Salary Than Most Industries
U.S. Travel Association | August 28, 2017
Rising domestic travel fuels economic recovery, creation of promising career paths and small business growth; heartland states and major cities alike benefit from international visitation MINNEAPOLIS (August 28, 2017)—As record numbers of Americans hit the road for Labor Day, a new study shows that travel is one of the most potent job creators of any American industry. "Travel: America's Unsung Hero of Job Creation" analyzes data from the U.S. Bureau of Labor Statistics to showcase the significant economic power of the travel industry in America—particularly the quality of the industry's jobs, and the large number that are c...
U.S. Hotel Construction Pipeline Up 7% Year-Over-Year with a 20% Increase in New Supply Forecast for 2017
Lodging Econometrics | August 28, 2017
According to a recent report by Lodging Econometrics (LE), the U.S. Construction Pipeline stands at 4,973 Projects/598,371 Rooms, with projects up 7% Year-Over-Year (YOY). There are 1,520 Projects/198,710 Rooms Under Construction, up 10% YOY, and are the highest counts recorded this cycle. Projects Scheduled to Start Construction in the Next 12 Months, at 2,312 Projects/264,924 Rooms, are up 5% YOY. Projects in Early Planning are at 1,141 Projects/134,737 Rooms and are up 8%, YOY. However, it's slightly down from last quarter which, so far, is the peak level this cycle. For the economy, the rate of growth may be low but it's running on ...
CBRE’s 2018 Hotel Industry Outlook Remains Positive with Continued, Albeit Slower, Growth Predicted
CBRE Group, Inc. | August 23, 2017
Atlanta – August 23, 2017 – The U.S. lodging industry will enjoy continued growth in all major metrics in 2018, albeit at a slower pace. Based on the recently released September 2017 editions of Hotel Horizons®, CBRE Hotels' Americas Research is forecasting year-over-year increases in occupancy, average daily room rate (ADR), rooms revenue (RevPAR), total operating revenue, and gross operating profits (GOP) from 2017 to 2018. "As hotel owners and operators begin the process of preparing their 2018 marketing plans and budgets it is vital that they receive critical inputs on what will drive industry performance," said R. M...
The Rainmaker Group Ranks on Inc. 5000 List of America’s Fastest-growing Private Companies for Seventh Consecutive Year
Rainmaker | August 22, 2017
Alpharetta, Ga. – August 22, 2017 – The Rainmaker Group (Rainmaker), the hotel revenue and profit optimization cloud, is proud to announce that it has again ranked on the Inc. 5000 list of the fastest growing privately held companies in the U.S. for 2017, making it the seventh consecutive year to achieve this honor. With the addition of 2017, Rainmaker is now part of an elite two percent (2%) of companies that have had the honor of being listed seven times, and an even smaller percentage that have received this distinction for seven years consecutively. With a continuously expanding customer base, Rainmaker continues to rank...
Fourth Quarter of 2017 Brings Brighter Outlook for North American Hoteliers
TravelClick | August 21, 2017
Third Quarter Data Still Inconsistent, but Final Months Indicate Rate and Bookings Growth NEW YORK – August 21, 2017 – While North American hoteliers continue to experience inconsistent booking growth during the third quarter of 2017, the fourth quarter brings long-awaited, welcomed news: healthy growth in both average daily rates (ADR) and bookings across all travel segments, according to new data from TravelClick's August 2017 North American Hospitality Review (NAHR). Overall, ADR is up 0.8 percent and committed occupancy* is up 4.4 percent in the fourth quarter. Additionally, the group and transient segments show particu...
HVS Market Pulse: Boise, Idaho
Breanna Smith | August 17, 2017
By Breanna Smith Boise is closing in on the ranks of the top ten cities in which to live in the U.S., according to the 2017 survey by U.S. News & World Report. The reasons for the elevated ranking—number 12, as of this year—include affordability, job prospects, and overall quality of life. This reflects Boise's ascendance in other spheres, including population, visitation numbers, and the number of proposed hotels, especially in the city's downtown corridor. The ongoing development boom compares to the Grove Plaza-centric boom of the late 1980s and '90s,[1] when architectural staples of Downtown Boise arose, including th...
The Components of Payroll Costs in Hospitality
Robert Mandelbaum | August 15, 2017
By Robert Mandelbaum Per the Bureau of Labor Statistics, the average hourly compensation for a hospitality industry employee increased by 3.6 percent in 2016. In the hotel industry, labor costs average roughly 50 percent of total operating expenses[1]. Therefore, with STR reporting an annual RevPAR growth rate of 3.2 percent for the year, it is understandable that U.S. hotel owners and operators were concerned about their ability to increase profits. Based on the results of CBRE Hotels' Americas Research's 2017 edition of Trends® in the Hotel Industry, hotel management was able to contain the growth of labor costs in 2016. On averag...
UK Sees Record Level of Room Openings as Q2 2017 Reports Strong Results for Hotel Sector
HVS | August 9, 2017
09 August 2017, London: The first six months of 2017 has seen the highest number of hotel bedrooms opening in the UK since 2012 according to Hotel Bulletin Q2 2017, published this week by HVS, AlixPartners, STR and AM:PM. Growth in hotel RevPAR [rooms revenue per available room] in all but two UK cities, double digit growth in Edinburgh, Cardiff and Belfast, and London recording an 8% uplift demonstrates that international visitors are still coming to the UK on the back of a weaker pound and a number of high profile events. The hotel sector is well placed for further growth in visitor numbers with over 7,500 new hotel bedrooms opening d...
Market Pulse: Bermuda, the Host Island for CHICOS 2017
Kristina M. D'Amico | August 4, 2017
By Kristina M. D'Amico Known for its iconic pink-sand beaches, the island of Bermuda is nestled in the North Atlantic Ocean, just 650 miles east off the coast of North Carolina. Most associate the island as part of the Caribbean, but Bermuda is actually located hundreds of miles to the north. Less than a two-hour flight from New York, Bermuda is an ideal tourist destination with mild temperatures and a unique culture, growing in popularity among younger, experiential travelers and hotel investors. The following article provides an overview of economic drivers, market dynamics, and future hotel growth in Bermuda, where there is a sur...
The Evolving Workplace
Erica Arnold | August 3, 2017
By Erica Arnold and Alice E Campbell The workplace is experiencing a dramatic evolution as Millennials begin replacing Baby Boomers at an exponential rate. According to the Bureau of Labor Statistics, by 2025 Millennials are estimated to represent three quarters of the workforce. As a result, there has been a disruption of traditional company culture that isn't exclusive to advancements in digital technology. In many companies, what began as a "water-cooler" culture is being replaced with a high-end cappuccino machine and meditation room. Workers now expect more comforts, more conveniences, and better opportunities for advancement than ...
Summer in the City – or Outside a City: Enjoying Strong Market Revenues & Positioning for Fall Season
Robert Rauch | August 1, 2017
by Robert A. Rauch Yes, it's summer but you might be outside a city. Either way, enjoy the remainder of revenues if you are in a strong market or the opportunity to position yourselves for a strong fall season if you are in Phoenix like we are with some of our properties. We are excited about the growth and changes at RAR Hospitality so if we might toot our horn for a short paragraph, we will appreciate it. First, we are now recognized for our growth in San Diego, Phoenix and finally the U.S. Inc. 5000 will be recognizing us this fall for being one of the fastest growing companies in the country between 2014 and 2016. Recently, in addit...
Revenue and Cost Strategies for Boutiques, Independents
Robert Rauch | July 28, 2017
Find the right tools and embrace the cost generators that best fit your independent property. By Robert A. Rauch With many moving parts and no brand systems or guidance to assist, it is essential to a hotel's revenue success to invest in the right tools, most of which will save dollars. Let's look at the revenue components of an independent hotel. A savvy sales team can make or break your hotel as group business generally books well in advance to provide the ideal base business. Without the power of a brand sales team and the tools that they provide, your independent hotel's sales efforts need to ensure that they are utilizi...
Social Media Marketing in the Hotel Industry: Trends and Opportunities in 2017
Jimmy Quach | July 25, 2017
By Jimmy Quach As social media platforms gain traction in usage rates and become ubiquitous in day-to-day life through the proliferation of mobile devices, they are proving to be valuable marketing channels, especially when targeting younger consumers. Although several prominent hotel brands have begun to scratch the surface of utilizing these social media channels for marketing and bookings, the state of this practice in North America is in its infancy. Other technology giants around the world have already capitalized on this opportunity with their social-media, mobile-adept user base. Nonetheless, the mass adoption of digital payment ...
The Serviced Apartment Sector In Europe: No Longer the Underdog?
Nicole Perreten | July 25, 2017
By Nicole Perreten Another year has passed where the serviced apartment sector was able to consolidate its position in the lodging sector. This year's article looks at the recent trends, discusses our analysis of the 2017 survey results and recent transaction evidence, and provides an outlook of the coming months in terms of pipeline. HIGHLIGHTS We conducted a new survey this year, which analysed a number of different operating characteristics and, while some show a clear commonality across the participants, many vary according to the brand and are therefore heavily driven by the operators' strategy, were it to target the traditional lo...
Outlook for Tourism in Israel Strong as Three Million Mark Within Sight, says HVS Report
HVS | July 20, 2017
20 July 2017, London: Israel's hotel sector saw a relatively stable performance during 2016 with significant potential for future growth due to a rise in incoming tourism and expansion in the sharing economy, according to a new report from global hotel consultancy HVS. Despite the volatile geo-political situation in Israel and its neighbouring states, hotel occupancy in 2016 averaged 67%, with average rates and RevPAR remaining steady at US$202 and US$136. Israel, whose large number of business start-ups and booming technology sector make it the world's second most innovative country, saw significant GDP growth of 4% in 2016. The countr...
Summer Continues with Inconsistent Rates and Bookings for North American Hoteliers
TravelClick | July 20, 2017
Group and Transient Leisure Travel Stand Out with Rate and Occupancy Growth in Third Quarter of 2017 NEW YORK – July 20, 2017 – As North American hoteliers push forward into the third quarter of 2017, both average daily rates (ADR) and bookings remain inconsistent across all travel segments, according to new data from TravelClick's July 2017 North American Hospitality Review (NAHR). This marks an ongoing trend for the year. However, some travel segments are experiencing noteworthy signs of growth during the quarter. For example, group travel is up 1.3 percent in ADR and transient leisure up 2.6 percent in bookings. "Acceptin...
Americans to Top $100 Billion in Vacation Spending This Summer
July 14, 2017
Allianz Global Assistance's Annual Vacation Confidence Index Reveals that Generation X Travelers Will Spend Nearly Twice as Much as Millennials and More than Baby Boomers Americans are spending more on summer vacations this year, topping $100 billion for the first time, according to the eighth annual Allianz Travel Insurance Vacation Confidence Index released today by Allianz Global Assistance. This is the first time in the survey's eight year history that vacation spending has surpassed the $100 billion mark and represents a 12.5 percent increase over last year. Americans' spending habits have risen for the second consecutive year &...
Management Fees – A Growing Expense
Robert Mandelbaum | July 13, 2017
By Robert Mandelbaum The U.S. lodging industry recovery from the depths of the great recession was characterized by strong growth in rooms revenue (RevPAR), concurrent with strict cost controls. This combination resulted in double-digit growth rates for profits[1] from 2010 through 2014. Starting in 2015, market conditions changed. The pace of RevPAR growth slowed down, while expenses increased at their highest level of real change in the past 20 years. With RevPAR growth forecast to be somewhat muted for the next few years, the attention of owners and operators has how shifted on controlling expenses. An expense that has consistently g...
Serviced Apartment Operators Embrace Growth as They Dare to Be Different, Says HVS Report
HVS | July 13, 2017
13 July 2017, London: As the branded serviced apartment sector becomes increasingly crowded some operators are moving away from the original extended-stay concept by embracing short-stay guests and adding a variety of facilities to their offer, according to a new report published this week by global hotel consultancy HVS. Having surveyed the concepts and plans of 17 key serviced apartment providers, the report reveals there are 10,000 units currently in the pipeline across Europe, of which 37% will open by the end of 2017. While most established hotel groups now have an extended-stay product, with some expanding through franchising, the...
Stand Out When You and Your Comp Set Receive the Same Group RFP
Groups360 | July 11, 2017
Not all hotels are created equal. And, neither are customers. Today, most meeting planners aren't privy to hotel availability and pricing. So, they end up fanning their RFP across the country, hoping to find that perfect venue amongst hundreds (if not thousands) of options. This has been the norm for years. Our team has a collective decades of experience working for the country's largest convention hotels and resorts. And, in our experience, we know that meeting planners tend to send the same RFP to several hotels located in the same region. This means, if you receive an RFP, expect that all of your neighboring comp set has received it ...
Key Drivers for Hotel and Resort Spa Profitability
Ryan Wall | July 10, 2017
By Mia A. Mackman, Ryan Wall Relaxation and a sense of wellbeing are at the heart of the spa and wellness market. Hence, it's no wonder that hotels, resorts, and spas have begun to reorganize their operations around wellness. The benefits, in the form of a stronger bottom line and appeal to demand segments, extend not only to guests but to hoteliers and hospitality companies, as well. Traditional resort spas cater to relaxation through a variety of services including aesthetics, facials, and massage. Some also offer salon services for hair and nails. Wellness-focused resort spas cater to diet and nutrition, spiritual counseling, and nat...
