mckenna luke
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...
Phoenix, AZ: A Decade of Investor Confidence Pays Off
ZABADA N. ABOUELHANA | September 22, 2023
By Zabada N. Abouelhana, McKenna Luke, Aleisha Smith Phoenix has come a long way in the last decade, developing a diverse and welcoming economy that has allowed the city and surrounding communities to outperform other top-25 markets. Area officials and industry partners have made a concerted effort to grow the metro in a meaningful and multi-faceted way beyond the somewhat stable demand drivers of the former decades that slowed the recovery from the Great Recession. Furthermore, operators and officials were able to capitalize on the Super Bowl held in 2015 to grow overall RevPAR to a pre-pandemic high in 2019. Demand during that period w...
HVS Outlook 2023: Beyond the Recovery
Anne R. Lloyd-Jones | January 23, 2023
By Anne R. Lloyd-Jones, McKenna Luke Despite persistent high inflation, an active Fed, and accelerating recessionary concerns, the lodging industry sustained the strong growth recorded in Q2 and Q3 of 2022 through the balance of the year. Transient demand continued to lead the recovery, surpassing 2019 levels in 19 of the past 21 months. The leisure segment remains a dominant influence, with business demand returning at a slower pace, although increasing levels of “bleisure” demand are blurring the distinction between these two sectors. Group demand rebounded to roughly 80% of 2019 levels; after the initial return of small to medium-si...
COVID-19’s Impact on the Albuquerque Lodging Market
McKenna Luke | April 13, 2021
By McKenna Luke Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. According to Visit Albuquerque, Albuquerque’s RevPAR fell roughly 47% in 2020 from 2019 levels, driven primarily by occupancy losses of up to 33% compared to 2019 and ADR declines of up to 21%. The occupancy loss was not only a factor of limited demand caused by the travel halt at the onset of the pandemic, but also of New Mexico being closed to travelers from outside the state for most of the year. As many other markets in the United States were supported mid-summer by leisure guests, ...
HVS Market Pulse: Columbia, South Carolina
McKenna Luke | September 20, 2019
By McKenna Luke Columbia, the state capital of South Carolina and the home of the University of South Carolina (USC), is a growing metroplex. Not only is the city expanding with notably annual population growth, the MSA population is expected to increase from roughly 800,000 to over 1,200,000 by 2045. The recent and current growth within the hospitality industry has been driven by growing population, visitation, new and expanding companies, and a pro-business environment. Fort Jackson remains a strong presence in the market, and over 100,000 family members attend basic-training graduation annually; several hoteliers in multiple submarkets ...
Impacts of Major Brand PIPs: Industry Perspectives by HVS / By McKenna Luke, Dinaker P. Mallya
McKenna Luke | February 20, 2017
Limited-service hotel brands have emerged as some of the top choices for consumers and investors alike. With a national reputation for value and quality, brands such as Hampton by Hilton and Holiday Inn Express have created high expectations for guests across the board. For hotel owners, these brands have created a product that produces strong RevPAR index and house-profit levels. These brands have acknowledged the wide array of product offering across their assets, mostly due to the aging physical condition given more relaxed standards during the Great Recession and need for refurbishment across hundreds of hotels nationwide. In this a...
Key Considerations for Historic Building Conversions
Shannon L. Sampson | February 14, 2017
By Shannon L. Sampson , McKenna Luke , Mallory B. Hall While conversions of historic buildings to high-end hotels have been taking place for decades, the trend has accelerated over the past several years, driven by a demand for one-of-a-kind hotel designs. The following looks at some of the challenges and rewards developers and hotel companies can expect when tackling a historic conversion project. The Opportunities The redevelopment of historic buildings offers quantitative and qualitative rewards, and these apply to both the developers and the communities and neighborhoods in which their projects are set. On a cost basis, for example,...
Four Key Takeaways: 2015 North America Tourism & Hospitality Investment Conference
HVS | November 17, 2015
By Heidi Nielsen, McKenna Luke, and Kirby D. Payne Foreign Direct Investment in U.S. enterprises has doubled over the past 15 years, a sign of investor confidence in American real estate, including hotels. The NATHIC event also spoke to what moves will set hoteliers ahead in the current market. Foreign Direct Investment Money for hotel development and transactions in the U.S., Mexico, and Canada is coming increasingly from overseas. Foreign Direct Investment (FDI), generally defined as an investment entity's controlling interest in an asset in another country, was the focus of this year's North American Tourism & Hospitality Investm...
