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
Lodging Demand Increases Amidst Increased Consumer Confidence, According to PwC
PwC US | May 22, 2017
Consumer spending will be key driver of economic growth into 2018 New York, NY, May 22, 2017 – Encouraged by the prospect of a strengthening economy, US lodging performance continued to improve in the first quarter of 2017 according to the updated lodging forecast released today by PwC US. Despite a weak first quarter GDP growth estimate of 0.7 percent, lodging demand increased at the strongest quarterly rate since the first quarter of 2015, supporting modest growth in both occupancy and average daily rate (ADR). Overall, revenue per available room ("RevPAR") increased 3.4 percent. Reinforced by rising employment, higher real inco...
Marriott Takes Top Spot for Franchise Companies with Most Rooms in Construction Pipeline Trend Report
Lodging Econometrics | May 19, 2017
May 19, 2017 – PORTSMOUTH, NH – According to the recent Construction Pipeline Trend Report from Lodging Econometrics (LE), the franchise companies with the largest pipelines by rooms in Q117 are; Marriott with 163,063 Rooms/1,264 Projects, Hilton with 146,104 Rooms/1,279 Projects and IHG with 82,771 Rooms/795 Projects. These 3 franchise companies comprise 65% of all rooms in the Total Pipeline. The largest brand for each of these companies are; Marriott's Fairfield Inn with 27,220 Rooms/285 Projects, Hilton's Home2 Suites with 36,074 Rooms/344 Projects and IHG's Holiday Inn Express with 38,160 Rooms/412 Projects. The franchi...
Paying the Intermediaries: An Analysis of Hotel Commissions
Robert Mandelbaum | May 18, 2017
By Robert Mandelbaum The increasing incidence of intermediaries selling hotel rooms and other services is a major topic of discussion among U.S. hotel owners and operators. From online travel agents to convention housing companies, third-parties are placing themselves in between hotels and their guests during the sales process. Of course these intermediaries want to get paid, and therefore this has become a rising expense for hoteliers. Per the Uniform System of Accounts for the Lodging Industry (USALI), payments to intermediaries are classified as commissions. In recognition of the rise in intermediaries, the 11th edition of the USALI ...
European Budget and Luxury Hotels Expected to Give Highest Returns and Best Prospects Say New Catella Market Tracker
May 17, 2017
STOCKHOLM, May 17, 2017 -- The new Catella Market Tracker, The European Hotel Market, shows a clear shift in the structure of hotels in recent years – the budget and luxury segments are the two winners from this development. In 2016, approximately EUR 17.8 billion was invested in the hotel asset class, and growth is expected in almost all European countries, especially Spain, Germany, Austria, Ireland and Sweden. The increasing connection of destinations through transport links, the global emergence of an Asian middle class with a high willingness to spend, and changed social preferences in terms of exotic locations, length of hol...
Modular Construction: An Evolution in the Development of Modern Hotels
Susan Furbay | May 17, 2017
By Susan Furbay The term "modular construction" once conjured images of small construction trailers or antiquated mobile home clusters just off the highway—not the most alluring draw for high-end developers and top-tier hotel companies, nor for their gentried clientele. Today, however, the concept of modular construction has evolved, with developers across the U.S. adopting a modular approach to building 2- to 4-star select-service, full-service, and even boutique hotels. This article gives a brief overview of the evolution of modular construction, as well as the potential benefits and challenges in terms of cost, timelines, and f...
New York Has the Most New Hotel Openings Forecasted for 2017 & Marriott Has Largest Construction Pipeline
Lodging Econometrics | May 17, 2017
May 17, 2017 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that the five markets with the largest hotel construction pipelines by project count are: New York with 185 Projects/29,447 Rooms; Houston with 158 Projects/17,475 Rooms; Dallas with 141 Projects/17,869 Rooms; Nashville with 124 Projects/15,614 Rooms; and Los Angeles with 111 Projects/17,701 Rooms. New York has the most New Hotel Openings forecasted for 2017 of any market with 47 Hotels/7,534 Rooms. Then Dallas, which is forecasted to open 44 Hotels/5,050 Rooms, Houston with 33 Hotels/3,505 Rooms, Austin with 21 Hotels/2,321 Rooms and Los Angeles wi...
2017 Middle East Hotel Survey – Chaos, Consolidation & Opportunity
Aaron Laurie | May 12, 2017
By Aaron Laurie and Hala Matar Choufany The region continues to face distraught; dwindling economic conditions, changing demographics and source markets, and a saturation of luxury hotels pose an opportunity for developers to build mid-market. 2017 Middle East Hotel Survey – Chaos, Consolidation & Opportunity ...
Soft Brands – Future Opportunities in the Canadian Market
Meagan Barley | May 11, 2017
By Meagan Barley Soft brands represent the movement of brand affiliations into the independent hotel market, bringing distinctive properties into an affiliation that expands the franchise company's audience while nurturing the creation of unique property-specific experiences for guests. By associating an independent property with a soft brand, the hotel is able to benefit from the expansive distribution channels and marketing reach associated with a brand. At the same time, the soft brand allows the hotel the freedom to define and shape the product offering. For the traditional hard-branded hotel, the core selling feature is the highly ...
Rapid Growth of Budget Hotels in the UK Leaves Other Brands Stagnating, Warns Hotel Bulletin
HVS | May 11, 2017
11 May 2017, London: Budget hotels now account for nearly two-thirds of the UK's top 10 brands as global hotel companies continue to diversify from their traditionally more upmarket offerings to the ever-popular budget sector. According to Hotel Bulletin Q1 2017, published this week by HVS, AlixPartners, STR and AM:PM, Premier Inn and Travelodge between them account for 52% of all branded rooms in the UK's top 10 and are also the most active in terms of future growth. The Bulletin compares the list of the UK's top 10 hotel brands in terms of room numbers with the top 10 in terms of new rooms pipeline. It finds that Premier Inn, the larg...
United States Construction Pipeline Continues Moderate Growth with Hotel Projects Up 13 Percent YOY
Lodging Econometrics | May 11, 2017
May 11, 2017 – PORTSMOUTH, NH – Lodging Econometrics (LE) reports that the Q117 United States Construction Pipeline currently stands at 5,032 Projects/602,034 Rooms, up 13% by projects Year-Over-Year (YOY). There are 1,511 Projects/197,450 Rooms Under Construction, up by 155 projects YOY or 11%. Projects Scheduled to Start in the Next 12 Months, at 2,414 Projects/272,487 Rooms, were up 367 projects, 18%. Projects in Early Planning at 1,107 Projects/132,097 Rooms were up by 39 projects or 4%. This is the 21st consecutive quarter of growth, but the Pipeline is still a distant 851 Projects/183,513 Rooms away from the Q208 peak ...
Purchase Price Allocations for Hospitality Assets
Tim Sauer | May 10, 2017
By Tim Sauer I recently attended a presentation where the presenter used a hamburger as an analogy for a cost-segregation study. While most people just see a hamburger, he sees a beef patty, lettuce, tomato, cheese, and a bun. That is to say, he doesn't see a single piece of real estate, but numerous smaller assets that comprise the larger asset. The same can be said of a purchase price allocation (PPA). Introduction to Purchase Price Allocations As the name implies, the objective of a purchase price allocation is to allocate the purchase price of an asset to its component parts. Unlike a cost-segregation study, which allocates cost for...
Interview with the Chocolate Expert
U.S. Travel Association | May 10, 2017
By Larry Mogelonsky, MBA, P. Eng. (www.hotelmogel.com) While I've been writing blog-style articles for the past seven years, by my family's standards I'm actually late to the game. Both of my two sisters as well as my father were all accomplished scribes long before I even entertained the notion of stepping on a soapbox. It is my absolute delight to interview my sister Marcia who happens to be the Director of Insight for Mintel Food and Drink (www.mintel.com). With offices all over Europe, Asia and North America, Mintel is the world's leading market intelligence agency, and my sister's specific area of expertise happens to be chocolate....
The Rainmaker Group Maintains Leadership Position in Hospitality Pricing Optimization and Intelligence Sector with Record Setting Growth in Q1 2017
Rainmaker | May 10, 2017
Leading provider of revenue management and profit optimization solutions platform for the hospitality industry experiences record setting increases in first quarter ALPHARETTA, GA – May 10, 2017 – The Rainmaker Group (Rainmaker), the industry leader in profit optimization and intelligence solutions for the gaming and hospitality market, today announced record setting growth during the first quarter of 2017, welcoming more than 200 additional properties to its rapidly expanding global client base. In addition to growing the number of users for its comprehensive platform of pricing optimization and intelligence solutions, man...
Travel Trends Index: International Inbound Travel Shows Signs of Weakness
U.S. Travel Association | May 8, 2017
WASHINGTON (May 8, 2017)—International inbound travel growth continues to avoid an outright decline, remaining in positive territory in March 2017—but the sector's more modest growth compared with the same period a year before underscores a projected slowdown in the months ahead, according to the U.S. Travel Association's Travel Trends Index (TTI). Numerous reports have held that international travel to the U.S. has measurably declined as a direct result of President Donald Trump's executive orders on visas and immigration, the first of which was issued on January 27. However, U.S. Travel economists urge caution,...
Which US Hotel Markets Are On the Bubble?
May 3, 2017
As the hotel industry continues on the path toward a downturn, it's time to begin looking at warning signs for which markets are poised to experience a large drop. By Jack Corgel, Managing Director, CBRE Hotels' Americas Research At a recent gathering, I was involved in a group conversation with hotel property investors who agreed that they have been "choking on the numbers" in certain U.S. hotel markets. Stated differently, their spreadsheet models explode once either acquisition prices or development costs are entered to evaluate hotel opportunities, especially in red-hot markets. They asked, "Should we pay such high p...
Ten Years After – Hospitality Technology 2017
Robert Rauch | May 2, 2017
by Robert Rauch No, for those of you who appreciated Alvin Lee and Ten Years After as a kid, this is not about music. This is about the 10 year anniversary of the technology explosion caused by Facebook, Twitter, iPhone and Android. Technology has finally been applied to hotels – it's about time! Artificial Intelligence, Virtual Reality, Text, Chat and much more are here to stay. The rise of digital technology has molded a new kind of traveler, one who embraces available tools and uses them to jump across industry-defined silos. These new travelers do not need handholding; they need the resources and technology to be able to be se...
South Africa Must Do More to Develop African General Managers for Hotel Industry
HVS | May 2, 2017
South Africa isn't doing enough to ensure that the hospitality and hotel industry is attractive to people as a long-term and sustainable career. Guy Stehlik, CEO and founder of BON Hotels and Director of BON Hotels International West Africa, speaking at a recent breakfast briefing hosted by global hotel consultancy, HVS, said the industry was "white owned, white managed and dominated by white faces, so we need to start doing a better marketing job to attract South Africans into the industry". HVS recently launched HVS Executive Search Africa to cater to rising demand for local senior management in the hotel industry. Managing partner of...
Rates Hold Steady in First Half of 2017 Despite Decline in Bookings
TravelClick | April 27, 2017
Transient Leisure Travel Remains Strong in Second Quarter of 2017 NEW YORK – April 27, 2017 – As North American hoteliers forge ahead in 2017, average daily rates (ADR) are holding strong in both the second and third quarters of 2017 despite declines in committed occupancy*, according to new data from TravelClick's April 2017 North American Hospitality Review (NAHR). In the third quarter, for example, ADR for group travel is up 4.5 percent, but bookings are down -5.9 percent. Similarly, across all travel segments for the same quarter, ADR is up 1.9 percent, but bookings are down -4.3 percent. The transient leisure segment is...
An Overview of Hotel Management Contracts in Europe
Dayk Balyozyan | April 26, 2017
By Dayk Balyozyan , Sophie Perret , Chris Martin While hotel lease contracts have traditionally been very popular in Europe and continue to be preferred or required by many institutional investors, management contracts have become increasingly prevalent as many other investors have sought to share further in their hotel's trading profit and, at the same time, most major international hotel operators have become far less willing to offer leases. A hotel management contract is defined as an agreement between a management company (or an operator), and a property owner, whereby the operator assumes responsibility for managing the property b...
U.S. Hotel Profits Grow in 2016 Despite Slowdown in Revenue
CBRE Hotels | April 25, 2017
Atlanta – April 25, 2017 – U.S. hoteliers enjoyed a seventh consecutive year of increasing profits in 2016 despite a slowdown in the rate of revenue growth. According to the recently released 2017 edition of Trends® in the Hotel Industry by CBRE Hotels' Americas Research, total operating revenue, driven by a 0.2 percent rise in occupancy and a 2.5 percent growth in average daily rate (ADR), increased by 2.4 percent in 2016 for the average hotel in its survey sample. However, by limiting the growth in operating expenses to just 1.6 percent, managers at the Trends® properties were able to extract a 3.7 percent increase...
HVS Market Pulse: Reno, NV
Desiree M. Flanary | April 24, 2017
By Desiree M. Flanary Introduction Reno, "The Biggest Little City in the World," has been rapidly changing over the last decade. Gaming and casinos have taken a back seat to growth in a variety of sectors and industries, including high-tech, health care, education, transportation and distribution, and manufacturing. The growth has been driven by Reno's proximity to California, abundance of developable land, central access to eleven western states, tax and business-friendly polices, skilled workforce, and high (and affordable) quality of life. With local and national economic growth continuing to accelerate and Reno's hotel market reach...
PressReader and Marriott International Partner to Redefine the Stay Experience
PressReader | April 19, 2017
PressReader is bringing more than 6,000 newspapers and magazines to every Marriott International and Marriott-owned hotel room in Europe. Guests can now download titles like The Guardian, Le Monde, Corriere della Serra, the Washington Post, Vogue, GQ and thousands more to their smartphones, tablets, or laptops without any subscription. They'll also receive extended access to the entire PressReader library for up to 48 hours after checking out. Simply visit the desktop platform or download the app using hotel Wifi to start reading. "We're reimagining how newspaper and magazine content is distributed to our guests. Through PressReader, we...
Select-Service Hotels: Efficient and Profitable
Robert Mandelbaum | April 19, 2017
By Robert Mandelbaum The definition of "select-service" within the lodging industry may vary from person to person, but there is no doubt that properties in this segment are the most popular among developers. Using the broadest definition of select-service, this category comprised an estimated 89 percent of the total hotel projects under construction according to the December 2016 U.S. Hotel Pipeline report from STR. As the name implies, select-service properties offer limited degrees of services and amenities compared to full-service hotels. While most select-service properties do not contain extensive meeting, recreational and retail ...
Oxford Capital Group & Quadrum Global Converting Chicago’s Former Atlantic Bank Building into Hotel Julian, Oxford’s Flagship Property
Oxford Capital Group, LLC and Oxford Hotels & Resorts, LLC | April 18, 2017
Chicago's Historic Atlantic Bank Building is being transformed into the flagship for Oxford's "Hotel Julian" luxury lifestyle brand set to open in late 2018 (CHICAGO, Ill; April 18, 2017) – Oxford Capital Group and Quadrum Global today announced that the comprehensive redevelopment and adaptive re-use hotel conversion of the historic Atlantic Bank building at 168 North Michigan Avenue will be christened the Hotel Julian, the flagship property of Oxford's latest luxury lifestyle hotel brand. Diagonally across from Millennium Park, the $75 + million development is slated to open in late 2018. "We are excited to be transforming this...
