industry market happenings
Service Properties Trust Completes the Sale of Eight Hotels for $45.3 Million
Service Properties Trust | November 23, 2020
NEWTON, Mass. - Service Properties Trust (Nasdaq:SVC) today announced that it has completed the previously announced sale of eight TownePlace Suites branded hotels with 834 rooms and a net carrying value of $35.0 million for an aggregate sales price of $45.3 million, excluding closing costs. The proceeds from the sale will be used for the repayment of debt. John Murray, President and Chief Executive Officer of SVC, made the following statement: “Given current market conditions, we are pleased to complete the sale of this hotel portfolio, which we had identified for disposition in late 2019. We were successful in achieving pricing co...
Survey: 71% of Hotels Won’t Survive Another Six Months Without Further Government Covid Relief
AHLA | November 18, 2020
WASHINGTON (November 18, 2020) – With a resurgence of COVID-19 and renewed travel restrictions enacted in many states, a new survey of American Hotel & Lodging Association (AHLA) members shows that the hotel industry will continue to face devastation and significant job loss without additional relief from Congress. Seven in ten hoteliers (71%) said they won’t make it another six months without further federal assistance given current and projected travel demand, and 77% of hotels report they will be forced to lay off more workers. Without further government assistance (i.e. second PPP loan, expansion of Main Street Lending Program)...
The Relationship Between the Stringency of COVID Lockdown Measures and GDP
Dr Reza Etemad-Sajadi | November 10, 2020
By Dr. Reza Etemad-Sajadi November 5, 2020 - What we have learned from the first COVID-19 wave? Insights into how different European countries reacted to the pandemic and how the diverse coping strategies affected their respective economies in the first half of this year. Interesting lessons to be learnt as we enter into a prolonged period of the pandemic. The world has come to understand that the COVID-19 pandemic is wreaking havoc on the global economy and will continue to do so for some time. The table below shows the annual growth rate of Switzerland’s GDP, which shrank by a record 8.3% year-on-year in the second quarter of 2020....
Hotel Industry Performance: EHL’s Pulse-Taker Reveals 5 Pain Points
Jochen de Peuter | November 3, 2020
By Jochen de Peuter The year 2020 will be marked in history, surely for the travel and hotel industry. Most hotels suffer from a sudden disruption due to COVID-19 crisis and the consequent travel regulations. Still during these days of crisis, hotel performance and business continuity varies significantly from one hotel to another. What makes a hotel more vulnerable than another? We try to find the answers in this article. EHL Advisory Services has developed an online Hotel Pulse-Taker tool that allows hoteliers to evaluate and benchmark the long-term sustainability of their hotel business based on a multi-dimensional questionnaire. A...
Japan Regional Markets: Recovery Leaders
STR | October 27, 2020
As entry restrictions for international travelers in Japan remain in place, new trends in hotel performance have emerged. Recent data suggests a distinct preference for regional destinations, helped in part by the Japanese government’s “Go to Travel” campaign to promote domestic travel and help boost local businesses. But while regional markets are leading the recovery in the country, levels remain well below pre-pandemic levels with full recovery not expected for years. Regional markets: Where does recovery stand? As we’ve seen in other markets around the globe, regional markets in Japan are leading the recovery as key cities l...
U.S. Hotel Development Cost Survey 2020
Luigi Major | October 15, 2020
By Luigi Major In 2019, the national lodging market reached new heights, with hotels reporting the highest occupancy and ADR levels ever recorded. Similarly, hotel development continued at a steady pace, with new hotels opening to a burgeoning market and new and exciting projects continuously being moved through the development pipeline. Since the start of the COVID-19 pandemic, government restrictions, travel and group cancellations, and an overall fear of traveling have caused an unprecedented drop in travel and tourism demand in the country and around the world, which has resulted in substantially lower occupancies and average rates. T...
COVID-19’s Impact on the Denver Lodging Market
HVS | October 7, 2020
Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. During the Great Recession, Metro Denver’s occupancy fell roughly eight points from 65% in 2008 to 57% in 2009; this year, we forecast occupancy to drop from the 2019 benchmark of roughly 74% to 42%, reflecting a 32-point correction. Average rate declined from $106 in 2008 to $93 in 2009, a 12% drop; this year, we forecast ADR to fall 30% ($135 to $96). Denver – 2020-2023 Forecast Source: STR (Historical Years) and HVS (Forecast) Major factors contributing to our forecast are summarized as follo...
AHLA Statement on Stalled Negotiations on New Covid Relief Legislation
AHLA | October 7, 2020
WASHINGTON (October 7, 2020) – The following is a statement from Chip Rogers, president and CEO of the American Hotel & Lodging Association, on the stalled negotiations surrounding additional COVID relief legislation. “This is unacceptable and unconceivable with millions of Americans out of work and thousands of small businesses barely hanging on. It’s time for our leaders in Washington to put politics aside and chart a bipartisan path forward to help businesses and employees in the hardest-hit industries. Millions of jobs and the livelihoods of people who have built their small business for decades are just withering away becau...
