operating performance
Hotel Performance Pushes Back to Seasonal Patterns
HotStats | October 31, 2022
As the global pandemic appears further in the rearview mirror, hotel performance is driving back to more recognizable, dependable and stable movements on the top and bottom line. Consider, first, Europe. There, gross operating performance in September 2022 was up 39% over August 2022. In comparison, GOPPAR in September 2019 increased 34% versus August 2019. Meanwhile, total revenue per available room (TRevPAR), grew 20% in September 2022 versus August 2022 and 18% in September 2019 versus to August 2019. It’s getting clearer that hotel performance is becoming more dependable and based on seasonality rather than other market variables,...
Operating Performance at Low Occupancy Levels
Robert Mandelbaum | April 17, 2020
By Robert Mandelbaum Since January 2020, CBRE Hotels Research has been analyzing the impact of the COVID-19 virus to understand how the societal and economic impacts of COVID-19 will influence the performance of U.S. hotels. Initial guidance came in the form of updated Hotel Horizons® forecasts of occupancy, ADR, and RevPAR for the nation’s chain-scales, location categories, and 60 major markets. Concurrently, we relied on the historical relationship between declines in RevPAR to estimate the potential decreases in profits. For example, a 20 percent decline in RevPAR for a full-service hotel during 2009 resulted, on average, in a...
Asset Management – Why Bother?
Russell Kent | March 9, 2020
By Russell Kent -- In the course of each year my colleagues and I see a huge number of hotel P&Ls and, within them, there are often wide variances in performance, even in like-for-like situations – whether it is better or worse revenue generation, cost control or effectiveness. Some hotel management companies don’t produce an adequate return on their owners’ investment by doing as much as they possibly can to increase revenues, reduce operating costs and improve bottom-line profits and cash flow. Only when given a ‘kick’ from the owner or from a third-party asset manager acting on behalf of the owner does the optimisation of a h...
