mark vanstekelenburg
COVID-19’s Potential Lasting Impact on Fixed vs Variable Hotel Expense Ratios
CBRE authors | July 22, 2020
By Mark VanStekelenburg, Kannan Sankaran, Andy Hartley and Vanessa Gonzalez As a result of COVID-19, hotel operators have been forced to make tough decisions, including the most basic one on whether to keep the lights on. Many were required to close their doors after municipal mandates were put in place and some decided to remain open, despite record-low occupancy levels, to house pandemic-related first responders and other essential personnel related to the fallout from the spread of coronavirus, largely in place of more traditional sources of demand during “normal times”. Depending on the type of hotel and its service level, the deci...
Health Movement Leads to Growth in Hotel Spas
Mark VanStekelenburg and Jenna Finkelstein | February 13, 2020
By Mark VanStekelenburg and Jenna Finkelstein In 2007, CBRE introduced Trends® in the Hotel Spa Industry in response to the spa industry’s rapid expansion within hotels and resorts and its relevance to hotels’ bottom lines. For the second time in the history of the publication, spa revenue increased at a higher rate than rooms revenue and total operating revenue. During 2018, the 159 hotels in our survey sample of achieved a 3.7 percent growth in RevPAR, which led to a 3.8 percent rise in total operating revenue. Concurrently, spa department revenue increased by 4.8 percent. With RevPAR forecast to increase less than 1.5 percent throu...
Hotel Spas: Not Just for Resorts Anymore
the Authors | March 25, 2019
By Mark VanStekelenburg and Jenna Finkelstein According to the December 2018 edition of CBRE's Hotel Horizons®, the annual growth in RevPAR for U.S. hotels is forecast to decelerate from 2.8 percent in 2018 to 0.1 percent in 2021. As the main source of hotel revenue is plateauing, hoteliers are looking up and down their operating statements to find alternative sources of income. For hotels that operate a spa, this department has stood out as a bright spot not only for growth in revenue, but gains in profits as well. The slowdown in revenue growth will be particularly acute in the nation's major markets. Since 2010, the majority of n...
