anne r. lloyd-jones
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...
Hotel Industry Outlook 2024: Moving Steadily Forward
Anne R. Lloyd-Jones | January 25, 2024
By Anne R. Lloyd-Jones, McKenna Luke The U.S. lodging industry ended 2023 at 63.0% occupancy, a slight increase over 2022’s 62.7%. Strong growth in the first quarter was offset by modest declines in the latter three quarters, as outbound international travel increased and inbound international travel remained muted, particularly from APAC sources. The group segment continued to post strong year-over-year gains; business travel also improved, albeit at a more modest pace. Overall, ADR increased by 4.3% in 2023, supported by strong growth in the first quarter of the year. ADR growth faltered in the summer months, attributable to lower leis...
Manhattan Lodging Overview Summary – Q4 2020
Chris Fernandes | March 11, 2021
By Chris Fernandes, Anne R. Lloyd-Jones, Roland deMilleret The COVID-19 outbreak began affecting the New York City lodging market in late February 2020 and, in the months that followed, led to the virtual dissipation of traditional sources of lodging demand. As an international gateway city, the complete stoppage of inbound international flights and travelers is of particular note. Because of the reduction in travel across virtually all demand sources, this diversification has resulted in an even harder hit to New York than other smaller U.S. markets. Nonetheless, many reasons remain for optimism into 2021 as vaccine distribution ramps up ...
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...
HVS Market Pulse: Perspectives on the New York City Lodging Market 2019 – a Review of the Supply Side
Anne R. Lloyd-Jones | June 24, 2019
By Anne R. Lloyd-Jones Supply growth has been the dominant headline for the New York City lodging market over the past decade. The number of hotel rooms in the city increased from 66,000 in 2007 to 99,000 in 2018, a 50% increase in inventory. Another 15,000 rooms are under construction or proposed; if all of these rooms are built, the city’s inventory will have increased by 75% in a 16-year period. Increases in demand kept pace with supply growth through 2018. However, in the first quarter of 2019, supply outpaced demand for the first time in the current cycle. While there are a number of factors that influenced these results, it is cle...
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...
