david eisen
Omicron Emergence a Yardstick for the Hotel Industry
HotStats | January 3, 2022
Though the materialization of new coronavirus strains vex, it turns out, the more thrown our way, the better we now appear to cope. Just as the world was rounding the corner on the Delta variant, along came Omicron—a rowdy interloper arriving to a party all hoped was winding down. And though the intrusion was noisy at first, Omicron could potentially be more insipid than insidious. Despite our best efforts, there is an assumption that COVID will become an endemic disease, meaning it’s here in perpetuity, like the flu. That means one thing: better get used to it. If it’s Omicron one day, it could be Upsilon next. For the hotel ...
Omicron Threatens Hotel Performance Recovery
HotStats | December 2, 2021
By David Eisen It’s all Greek to me. The COVID-19 pandemic has so thoroughly dominated everyday life that we have all got an education in the Greek alphabet. From Alpha and Beta to Gamma and Delta, each new strain is a grim reminder of the coronavirus’ intractability. Now, Omicron—the newest variant that has already spooked markets and caused travel bans from some southern Africa countries. Though nascent, there is the reality and worry that the new strain could derail the hotel industry’s fledgling recovery, in particular if plans move forward to tighten testing policies, like in the U.S. Indications are that ...
Global Hotel Demand Uptick Tussles With Competing Costs
HotStats | June 29, 2021
With the global pandemic showing some signs of relent, the collective hotel industry is reaping the reward, as travelers get back on planes or hit the road for a well-needed break from work-from-home monotony and Netflix overload. The hotel industry is happy to welcome them back, but a continued revenue shortfall—the product of some segments still not returning with gusto, such as corporate and group—complemented by expense creep and an all-too-difficult labor market, are having consequence on the bottom line. The U.S. Push Here’s a stat: On June 25, 2021, 2,137,584 people passed through U.S. airports, according to the TSA,...
For Hotels, Restaurants a Cautionary Tale
Hotstats | June 15, 2021
By David Eisen Vulnerability and loss of control are two of COVID-19’s biggest lessons. Unlike past threats, this one was unique in its ability to deliver damage under the guise of invisibility. It couldn’t be seen; it couldn’t be heard; it couldn’t be smelled; it couldn’t be touched. But its impact was like a Category 5 storm: deadly, destructive, leaving nothing unaffected in its path. The tempest has simmered, but in the clearing is no rainbow. Instead, hotels are saddled with a host of new challenges: labor woes, supply chain worry and other P&L headaches. It’s a hurdle restaurants know all too well and a warning ...
Hotels Are Slowly Recouping Business, But When Will the Corporate Guest Return?
HotStats | May 24, 2021
Predicting the return of corporate travel would be a cinch if foretelling the future was foolproof. No one, however, has that extraordinary prescience and even if they did, the future is, at best, murky. The continuing popularity of work-from-home arrangements, the COVID-19 induced reluctance of both individuals and companies to get back out on the road, and issues throughout the travel supply chain are all converging to create a less-than-hospitable environment for individual business travelers. “Before you get corporate travel back, you have to get people back to the office,” said Daniel Lesser, President and CEO of LW Hospitality...
A Year Later, the Hotel Industry Recalibrates, Reassesses
HotStats | April 27, 2021
Just over a year after the World Health Organization declared COVID-19 a pandemic, the global hotel industry is—slowly—stirring from hibernation and seeing at least modest gains in traveler demand. The wait has been long, and it remains a work in progress. But making headway is all you can ask for after a 12-month headache. In the U.S., which saw performance calve last March, before bottoming out in April, small gains continued to be made in most key performance indicators in March 2021—though the strides only shined a light on the decrepitude that was 2020. Consider gross operating profit per available room, which was up 328.9...
Around the Globe Hotel Profit Perks Up, Just Not in Europe
David Eisen | March 30, 2021
By David Eisen The U.S. hotel industry was in need of a month like February. For Europe, it was another in a string of profitability pain. In a turnaround from previous months, gross operating profit per available room (GOPPAR) in the U.S. turned positive in February and at $10.82, it was 675.5% higher than in January. Though the jump into positivity after eight of the last 10 months being negative was cause for celebration, GOPPAR in February is still 89.5% down over the same time a year ago. In step with the boost in profit was a jump in both rooms and total revenue. RevPAR was up $14 over January to $50.81, while TRevPAR increased...
Is This the Lean Hotel of the Future?
David Eisen | March 18, 2021
By David Eisen In one of many entertaining scenes from the 1981 war comedy “Stripes,” peak Bill Murray cajoles peak John Candy to mud wrestle a trio of scantily clad women in a bar. You can imagine what ensues, and if you can’t, the internet does. It’s a sexist cinematic trope to be sure (hey, it was the ‘80s), but during the scene, Murray’s character inflates the ego of Candy’s character by calling him a “lean, mean, fighting machine.” A lie, yes (Candy was rotund and not nimble), but it did the trick, leading to an unctuous Candy tussling in a pool of mud. What does this have to do with the hotel industry? Murray...
