anne lloyd jones
September 2024 Hotel Industry Outlook: Anticipating Accelerated Growth
Anne R. Lloyd-Jones | October 4, 2024
After twelve months of declining occupancy and improving ADR from April 2023 through March 2024, the U.S. lodging market appears to have entered a period of relative stability, with changes in both metrics more subdued than in the recent past. However, as with most averages, these aggregate results comprise notable variations among individual markets and lodging segments. The meeting and group segment continues to increase, supported by both improving convention activity and continued growth in corporate group meetings and events. These trends are particularly beneficial to the luxury and upper-upscale segments of the market, as well as in...
May 2024 Hotel Industry Outlook: Bright Spots and Challenges
Anne R. Lloyd-Jones | May 31, 2024
By Anne R. Lloyd-Jones Mixed messages abound these days, comprising some bright spots, some not so bright spots, and some challenges. With no coherent theme, the greatest challenge may be developing a forecast for the industry as a whole. But we are undaunted and herewith present our current expectations for the U.S. lodging industry. The recent successive increases in GDP, lower inflation levels, and continued strong job growth paint a positive picture of the U.S. economy, but ongoing international conflicts, the pending election, and uneven economic metrics have resulted in a lack of overall clarity. The specter of a recession remains...
HVS Outlook 2023: Beyond the Recovery
Anne R. Lloyd-Jones | January 23, 2023
By Anne R. Lloyd-Jones, McKenna Luke Despite persistent high inflation, an active Fed, and accelerating recessionary concerns, the lodging industry sustained the strong growth recorded in Q2 and Q3 of 2022 through the balance of the year. Transient demand continued to lead the recovery, surpassing 2019 levels in 19 of the past 21 months. The leisure segment remains a dominant influence, with business demand returning at a slower pace, although increasing levels of “bleisure” demand are blurring the distinction between these two sectors. Group demand rebounded to roughly 80% of 2019 levels; after the initial return of small to medium-si...
The Impact of COVID-19 on Hotel Values
Anne R. Lloyd-Jones | April 15, 2020
By Anne R. Lloyd-Jones, Suzanne R. Mellen, Tanya J. Pierson The COVID-19 pandemic and the related restrictions on travel, business activity, and individual movement are having an unprecedented impact on our industry and economy. Hotel owners, operators, lenders, and investors are all facing greater challenges than ever anticipated, as they grapple with plummeting occupancy, average rate (ADR), and RevPAR and seek solutions to mitigate the impact on EBITDA. Owners and operators are dealing with the current crisis day-to-day, making hard decisions regarding staffing, continuing or suspending operations, and having difficult conversations w...
Pandemics and the Lodging Industry
Anne R. Lloyd-Jones | February 18, 2020
By Anne R. Lloyd-Jones As of the writing of this article, the Coronavirus pandemic is only a few weeks old, yet it is clear that this event is already having a significant impact on the travel industry. The World Health Organization (WHO) has declared the virus, now known as COVID-19, a global health emergency, and individual governments have imposed travel restrictions and other measures, principally directed at travellers arriving from China. To gain some perspective on the potential impact of the current Coronavirus scare on the lodging industry, this article looks at the SARS pandemic of 2003, which has strong parallels to the curren...
Yield Management: Offensive and Defensive Strategy
Anne R. Lloyd-Jones | August 20, 2018
By Anne R. Lloyd-Jones Many markets in the U.S. have experienced substantial increases in inventory, with some recording year-over-year supply increases of 5.0% or more. Thus far, occupancy levels have generally remained strong, as most markets have seen demand growth keep pace with supply. The same cannot be said for average rates. The first signs of market saturation are often found in the average rate trends. Why? The short answer to this question is yield management. Yield management is the practice of adjusting the price and availability of inventory in response to changing market conditions, including consumer preferences and dem...
HVS Market Pulse: Perspectives on the New York City Lodging Market
Anne R. Lloyd-Jones | December 22, 2016
By Anne R. Lloyd-Jones With average rates declining by 1.5% in 2015 and on track to drop at more than double that pace in 2016, the New York City lodging market has received a lot of negative press of late. Between the significant increase in supply and the lackluster average rate performance, the once golden market is now viewed as tarnished. Some hotel owners are selling assets, preferring not to ride out the current downturn; RLJ recently sold two hotels in New York, noting "While we continue to believe in the New York City market over the long term, in the near term, these sales reduce our exposure as this market goes through a soft...
