cbre hotels americas research
Operating Observations From 2020
Robert Mandelbaum | March 29, 2021
By Robert Mandelbaum In 2020, U.S. hotels suffered the worst year of operating performance since CBRE began tracking profitability in 1938. During the year, the average hotel in CBRE’s monthly survey of U.S. operating performance experienced a 78 percent decline in Gross Operating Profits (GOP) and achieve the lowest GOP margin (19.7%) over the past 82 years. While hotels may have earned enough revenues to cover their direct operating expenses, it is likely that the average hotel did not generate any cash from operations to cover their debt service. To track operating performance during 2020, CBRE collected monthly operating state...
The Owner’s Obligation – Cash
Robert Mandelbaum | August 17, 2020
By Robert Mandelbaum The COVID-19 virus has had an extreme negative impact on the U.S. lodging industry. According to CBRE’s June 2020 edition of Hotel Horizons®, lodging demand in the U.S. will decline by 37.0 percent in 2020. This will cause a 38.0 percent drop in the national occupancy level, along with a 22.5 percent fall in average daily room rates (ADR). The net result is a projected 51.9 percent fall off in revenue per available room (RevPAR) for the year. Using historical data from the CBRE Trends® in the Hotel Industry database of operating statements, the most likely consequence of a 51.9 percent RevPAR decline is a G...
U.S. Hotels Enjoy Profit Growth, But It Is Becoming Harder to Achieve
CBRE | April 29, 2019
Atlanta – April 29, 2019 – While U.S. hoteliers enjoyed a ninth consecutive year of increasing profits in 2018, it is becoming increasingly difficult for managers to accomplish this task. According to the recently released 2019 edition of Trends® in the Hotel Industry by CBRE Hotels Americas Research, total operating revenue increased by 2.6 percent in 2018 for the average hotel in its survey sample. Managers were able to limit the growth in operating expenses to 2.8 percent, thus allowing for a 2.3 percent increase in gross operating profits (GOP) at the Trends® properties. The 2.8 percent growth in expenses is less...
Late Cycle Supply Sources of the Occupancy Gap
Bram Gallagher | October 24, 2018
By Bram Gallagher The present hotel cycle is defying conventional expectations of late-cycle Revenue Per Available Room (RevPAR) behavior. Over the previous two cycles, recovery began primarily with occupancy. As the cycles continued, average daily rate (ADR) began to rise. Eventually, the increases to ADR were the dominant contributor to RevPAR growth, and occupancy leveled off or even slightly declined. These cycles, occurring from August 1992 to November 2002 and November 2002 to May 2010, lasted approximately ten and eight years, respectively. Well into the ninth year of its current cycle, we would expect that the hotel market would...
Budgeting for 2019? Follow the Supply and the Economy
CBRE Group, Inc. | August 22, 2018
Atlanta – August 22, 2018 – New hotel rooms coming onto the U.S. market shouldn't be a concern for established hotel operators because demand will continue to exceed moderating new-supply levels through 2019, according to CBRE Hotels' Americas Research's recently released September 2018 Hotel Horizons® forecast report. CBRE Hotels Research forecasts that supply will peak at a 2.0 percent gain in 2018 and then stabilize at the long-run average of 1.9 percent for the next two years. Further, the number of projects entering all phases of the development pipeline is declining. "On a broad national basis, the supply increases...
Cost Controls Perpetuate U.S. Hotel Profit Growth In 2017
Robert Mandelbaum | July 17, 2018
By Robert Mandelbaum U.S. hoteliers enjoyed an eighth consecutive year of increasing profits in 2017 despite another slowdown in the rate of revenue growth. According to the 2018 edition of Trends® in the Hotel Industry, total operating revenue increased by 2.0 percent in 2017 for the average hotel in its survey sample. Fortunately, by limiting the growth in operating expenses to 1.9 percent, managers at the Trends® properties realized a 2.2 percent increase in gross operating profits (GOP) for the year. Trends® in the Hotel Industry is the CBRE Hotels' Americas Research's annual survey of operating statements from thousands...
After Strong First Quarter, CBRE Lifts 2018 U.S. Lodging Forecast and Expects Continued Growth
CBRE Group, Inc. | June 14, 2018
Los Angeles – June 14, 2018 – Based on better than expected first-quarter performance, CBRE Hotels' Americas Research (CBRE) has enhanced its outlook for 2018. According to STR, U.S. hotels enjoyed a 3.5 percent increase in revenue per available room (RevPAR) during the first quarter of 2018, exceeding the 2.5 percent RevPAR gain expected by CBRE for the period. Accordingly, CBRE now is forecasting a 2.8 percent annual increase in RevPAR for U.S. hotels in 2018, a 0.3 percentage point enhancement over the 2.5 percent mark published in CBRE's March 2018 Hotel Horizons® report. Average daily rates (ADR) at Los Angeles area...
After Strong First Quarter CBRE Lifts 2018 U.S. Lodging Forecast
CBRE Group, Inc | May 30, 2018
Atlanta – May 30, 2018 – Based on better than expected first quarter performance, CBRE Hotels' Americas Research (CBRE) has enhanced its outlook for 2018. According to STR, U.S. hotels enjoyed a 3.5 percent increase in revenue per available room (RevPAR) during the first quarter of 2018, exceeding the 2.5 percent RevPAR gain expected by CBRE for the period. Accordingly, CBRE now is forecasting a 2.8 percent annual increase in RevPAR for U.S. hotels in 2018, a 0.3 percentage point enhancement over the 2.5 percent mark published in CBRE's March 2018 Hotel Horizons® report. "We continue to be impressed by the ability of the...
