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Israel’s Hotel Sector Shows Record Performance, Says HVS Report

HVS | August 22, 2019

22 August 2019, London: Hotels in Israel saw another record performance in 2018 as the country experienced a lull in geo-political turmoil and a rise in incoming tourist numbers, according to a new report by global hotel consultancy HVS. Over the past few years Israel has seen significant growth in its tourism sector. In 2017 the country welcomed 3 million tourists for the first time in its history. In 2018 that number rose to 4.1 million, a year-on-year increase of over 14%. On the back of this growth hotels across Israel saw RevPAR [*rooms revenue per available room] lift by 6% last year, driven largely by a healthy rise in average ro...

Canadian Lodging Outlook Quarterly 2019-Q2

About HVS Canada | August 21, 2019

HVS and STR are pleased to provide you with the quarterly report of the Canadian Lodging Outlook.  Each report includes occupancy (occ), average daily rate (ADR), and revenue per available room (RevPAR) for six major markets.  Source: STR Source: STR If you would like a detailed hotel performance data for all of Canada, STR offers their Canadian Hotel Review. The Canadian Hotel Review is available by annual subscription. For further Information, please contact: info@str.com or +1 (615) 824-8664 ext. 3504.  ...

U.S. Hotel Interest Coverage / Robert Mandelbaum and John B. Corgel, Ph.D.

Robert Mandelbaum | August 20, 2019

By Robert Mandelbaum and John B. Corgel, Ph.D. According to the March 2019 edition of CBRE’s Hotel Horizons® forecast report, RevPAR growth for the U.S. lodging industry will be limited to under 2.5 percent through 2020.  Further, CBRE is projecting a 0.6 percent decline in RevPAR for 2021 as CBRE expects the economy to slow down during the year.  The combination of modest increases in revenue and rising operating expenses (especially labor) make hotel owners and operators nervous about their ability to enjoy profit growth the next few years. While the profit growth story is concerning, it should it should be noted that current GOP...

The Latin America Hotel Construction Pipeline Continues to Decline from Its 2016 Peak

Lodging Econometrics | August 20, 2019

August 20, 2019 – PORTSMOUTH, NH – According to the recent Latin America construction pipeline trend report from Lodging Econometrics (LE), the total construction pipeline is in its third year of decline by rooms and has 710 projects/123,392 rooms. 710 projects is the lowest number of projects in the pipeline since the fourth quarter of 2013. Projects presently under construction stand at 321 projects/56,228 rooms. Projects scheduled to start construction in the next 12 months stand at 208 projects/35,733 rooms, which is an all-time high for rooms, and those in the early planning stage are at 181 projects/31,431 rooms. In the secon...

Study: A Record 768 Million U.S. Vacation Days Went Unused in ’18, Opportunity Cost in the Billions

U.S. Travel Association | August 19, 2019

WASHINGTON American workers left a record number of vacation days on the table last year—768 million days, up 9% from 2017—according to new research from the U.S. Travel Association, Oxford Economics and Ipsos. Of the unused days, 236 million were forfeited completely, equating to $65.5 billion in lost benefits. More than half (55%) of workers reported they did not use all their allotted time off. While American workers are leaving more unused days on the table, they are also taking more days of paid time off; American workers took off an average of 17.2 days in 2017 and 17.4 days in 2018. Employment in the U.S. is st...

The Boston Lodging Market: What the Supply Surge Means Moving Forward

Sebastian Colella | August 19, 2019

At year-end 2018, the Boston and Cambridge lodging market was comprised of 105 hotels with approximately 24,000 rooms. While this has grown considerably in four years, lodging supply in this market remains small relative to other major gateway cities. The ongoing building boom in Boston and Cambridge has contributed greatly to the recent surge in lodging supply and is expected to continue through 2021 and beyond. What does the pipeline of hotel development, its largest in recent history, mean for the Boston lodging market’s performance? Recent & Continued Supply Growth Between 2000 and 2014, rooms supply in market increased at ...

The Raptors Won the NBA Title, But What City Won the GOPPAR Crown?

David Eisen | August 12, 2019

By David Eisen Sporting events typically serve as huge hotel demand generators for a city. And when the games are really meaningful—such as a playoff round or championship final—they become even hotter tickets, which means a greater need for hotel rooms—for guests who are attending the games and those who are there just to share in the experience. These high-demand times typically (should) equate to higher occupancy, higher rates and (hopefully) higher monthly profitability. The 2019 NBA Finals, which pitted the Toronto Raptors against the Golden State Warriors, was one of these events. For Toronto, it was especially satisfying si...

Q2 2019 Cvent Group Business Outlook Shows Continued Group Booking Slowdown

Cvent | August 9, 2019

Quarterly forward-looking report informs hoteliers of key market trends to help drive group business growth TYSONS, Va.--August 9, 2019 --In the latest Cvent Group Business Outlook, a 24-month forward-looking report highlighting United States group booking activity through the Cvent Supplier Network, data shows U.S. hotels will continue to face a challenging group business market. “While group booking pace has picked up slightly compared to last quarter’s report, the overall 24-month view is still fairly weak,” said Jeffrey Emenecker, senior director of analytics at Cvent. “As we look at the next two years, our sourcing data sh...

Canada’s Hotel Construction Pipeline Continues to Grow Hitting an All-Time High

Lodging Econometrics | August 9, 2019

August 9, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that at the close of the second quarter of 2019, the total construction pipeline in Canada hit an all-time high with 273 projects/35,787 rooms. Construction pipeline projects are up 14% and rooms are up a lofty 20% year-over-year (YOY). Currently, there are 92 projects/11,118 rooms under construction. Projects scheduled to start construction in the next 12 months stand at 95 projects/11,097 rooms with projects in the early planning stage at 86 projects/13,572 rooms, both stages hitting record high counts. In the first half of 2019, Canada opened 28 new ho...

RevPAR Jump Can’t Prevent GOPPAR Slip Across Europe

HotStats | August 7, 2019

In a clear example that revenue and profit aren’t always aligned, RevPAR at mainland European hotels attained a high for the year in June, but GOPPAR fell. Falling ancillary revenues and rising costs stymied gains made in rooms from flowing through to the bottom line, according to the latest data tracking full-service hotels from HotStats. At €158.82, RevPAR was a high for 2019 and also exceeded the previous peak of €157.09 from June 2018. The spike was led by a 1.4-percentage-point year-on-year increase in room occupancy to 82.5%, and was in spite of a 0.5% decline in achieved average room rate, which fell to €192.61. How...

Q2 2019 U.S. Lodging Market Update

Daniel Lesser | August 6, 2019

By Daniel Lesser With 121 consecutive months of growth through Q2 2019, the U.S. economy is now in record territory for the longest expansion period in history. The decade long economic expansion has been fueled in part by job growth, record low unemployment rates, and low interest rates in the capital markets. During the first half of 2019, America has continued to add jobs, albeit at a slower pace compared to last year. U.S. consumer confidence remains vigorous and stock market indices continue to set record high levels. To mitigate the risks of slower global growth and trade-policy uncertainty, during the near term, the Federal Reserve ...

Survey Says: Young Business Travelers Prefer Solo Sightseeing and Social Workspaces

Hilton Hotels & Resorts | August 6, 2019

MCLEAN, Va. -- August 6, 2019 -- As Hilton Hotels & Resorts continues to innovate its offerings for the next generation of business travelers, the flagship brand is releasing new survey findings uncovering the travel highs and lows for young professionals, ages 23-35, who attend meetings while on the road. The survey revealed that, while young business travelers prefer a buzzing social environment and in-person interactions during regular work hours, they would rather spend their evenings on their own. Hilton previously conducted research unveiling that business travel is a major work perk among this group. This year, the findings f...

Travel Trends Index: Travel Posts Worst Overall Performance in Nine Months

U.S. Travel Association | August 6, 2019

Leisure travel growth offset by flat business segment and contraction in int'l inbound travel WASHINGTON -- August 6, 2019 -- Travel to and within the U.S. grew 2.4% year-over-year in June, according to the U.S. Travel Association's latest Travel Trends Index (TTI)—travel's worst performance since September 2018. Most concerning is the 0.8% contraction of international inbound travel, which brought the sector's six-month trend below zero for the first time since September 2015. This drop in international inbound travel follows Friday's news that travel employment tumbled in July, losing 2,500 jobs despite the relative strength of th...

Despite RevPAR Dip, GOPPAR Gains at U.S. Hotels in June

HotStats | August 5, 2019

Revenue and profit aren't always simpatico. Check out what was up and what was down for U.S. hotels in June. Illustrating that revenue per available room and profit don’t always move lock and step, RevPAR at U.S. hotels in June declined year-over-year, but the drag did not bring down GOPPAR with it, according to the latest data tracking full-service hotels from HotStats. The result: RevPAR decreased 0.5% YOY to $175.14, while GOPPAR was up 0.9% to $113.10. Declining room occupancy, down 1.1 percentage points, was the likely culprit as achieved average room rate was up 0.8% YOY. Where, then, was the growth derived? Hotels in the ...

Marriott Tops Leading Companies in The U.S. Hotel Construction Pipeline Followed by Hilton and IHG

Lodging Econometrics (LE) | August 5, 2019

PORTSMOUTH, NH -- August 5, 2019 -- In the Lodging Econometrics (LE) second quarter report for 2019, the franchise companies leading the United States hotel construction pipeline are Marriott International with 1,469 projects/193,458 rooms, up 9% by projects and rooms year-over-year (YOY). Next, coming off of last quarter’s all-time high, is Hilton Worldwide currently at 1,372 projects/152,853 rooms, a 3% increase YOY. InterContinental Hotels Group (IHG) follows with 962 projects/97,647 rooms, also up 3% by projects and rooms, YOY. The leading brands in the construction pipeline for each of these three companies are Home2 Suites by Hilto...

Global Travel Pricing Set to Slow Down in 2020; Flights to Rise 1.2%, Hotels 1.3%

Global Business Travel Association | August 2, 2019

MINNEAPOLIS & ALEXANDRIA, Va.-- August 2, 2019 -- After posting sharp rises in 2019, prices in the global travel industry are likely to slow in 2020, with flights rising a modest 1.2%, hotels rising only 1.3%, and rental car rates up 1%, according to the sixth annual Global Travel Forecast, published today by CWT and GBTA. While the global economy is doing well overall – and expected to grow a solid 3.6% in 2020 – a raft of uncertainties are set to put a damper on pricing. “The risks and ambiguity have increased over the past few months – not least the threat of escalating trade wars, the impact of Brexit, possible oil supply s...

Hyatt Reports Second-Quarter 2019 Results; Net Income Increased 10.6% to $86 Million

Hyatt Hotels Corporation | August 1, 2019

Strong transient demand drove 1.3% system-wide RevPAR growth, and fees and net rooms grew at a double-digit pace inclusive of the Two Roads Hospitality LLC acquisition. Second quarter of 2019 financial highlights as compared to the second quarter of 2018 are as follows: Net income increased 10.6% to $86 million. Adjusted EBITDA decreased 2.1% to $213 million, a decrease of 1.0% in constant currency. Comparable system-wide RevPAR increased 1.3%, including an increase of 2.3% at comparable owned and leased hotels. Excluding the negative impact from the timing of the Easter holiday, comparable RevPAR at system-wide hotels and compar...

New York Leads Markets in U.S. Hotel Construction Pipeline

Lodging Econometrics | August 1, 2019

PORTSMOUTH, NH -- August 1, 2019 -- At the end of the first half of 2019, analysts at Lodging Econometrics (L.E.) report that the top five markets with the largest hotel construction pipelines are New York City with 166 projects/28,231 rooms. Next are Dallas and Los Angeles with 162 projects/19,972 rooms and 158 projects/25,428 rooms, respectively. Houston follows with 146 projects/14,998 rooms, and Atlanta with 130 projects/17,280 rooms. With the exception of NYC and Houston, these top markets are at record high counts. The top ten markets in the pipeline including the five markets mentioned above plus Nashville, Austin, Orlando, Detroit,...

U.S. Fall in Overseas Travel Market Share to Continue Through 2022

U.S. Travel Association | August 1, 2019

WASHINGTON -- August 1, 2019 -- The steep and steady decline in the U.S. share of the lucrative international travel market is set to continue until at least 2022, according to the latest forecast figures from the U.S. Travel Association. U.S. global long-haul travel market share is on a four-year slide since its previous high of 13.7% in 2015, falling to 11.7% in 2018. The decline in market share represents losses to the U.S. economy of 14 million international visitors, $59 billion in international traveler spending, and 120,000 U.S. jobs. But the market-share drop is now forecast to continue, dipping under 11% in 2022, the latest o...

For the Second Quarter of 2019, the U.S. Hotel Construction Pipeline Continued Its YOY Growth Spurt Even as Business Investment Declined for the First

Lodging Econometrics | July 31, 2019

PORTSMOUTH, NH -- July 31, 2019 -- Analysts at Lodging Econometrics (LE) reported for the second quarter of 2019, the total U.S. construction pipeline climbed to 5,653 projects/693,207 rooms, up 6% by projects and 9% by rooms year-over-year (YOY). Pipeline totals are just 230 projects shy of the all-time high of 5,883 projects/785,547 rooms reached in the second quarter of 2008. Projects currently under construction stand at 1,727 projects/233,600 rooms with projects scheduled to start construction in the next 12 months at 2,552 projects/295,989 rooms. Both are at the highest levels since early 2008.  Projects in the early planning stage ...

Sporting Fixtures Bring 6% Boost to London’s Hotels While the Provinces Feel the Squeeze

HVS | July 29, 2019

RevPAR in London’s hotels rose 6% in Q2 2019 on the back of visitors travelling to the capital to watch the ICC Cricket World Cup and the Major League Baseball, according to the latest UK Hotel Market Tracker: Q2 2019, produced by HVS London, AlixPartners and STR. On the back of both major sporting fixtures, London’s hotels saw average rates rise 5.6% to £157 year-on-year, with occupancy up 0.6% to 84%. It was a different story in the regions, however, despite a number of the cricket fixtures being held in Birmingham, Manchester and Southampton. Outside the capital, RevPAR was down by 0.9% for the quarter, average rate fell 0.6% to...

New Business Traveler Sentiment Index™ Reveals Hotel Experience Is a Major Driver of Overall Trip Satisfaction

the Global Business Travel Association | July 25, 2019

Business Travelers Happy with Travel Experience Despite 54% Having Travel Mishaps Alexandria, VA (July 25, 2019) – More than half (54%) of business travelers have experienced a mishap* while on the road for work in the last year, with 52% reporting they had a delayed flight and 40% a cancelled flight. However, the vast majority (86%) of global travelers are satisfied with their overall business travel experiences, according to the newly relaunched GBTA Business Traveler Sentiment Index™ in partnership with RoomIt by CWT™, the hotel distribution division of CWT, the B2B4E travel management platform. Traveler experience proved to ha...

Business Travelers Seek Personalized Options & Payment Efficiencies

The Global Business Travel Association | July 17, 2019

ALEXANDRIA, Va.--July 17, 2019 --Business travelers want hotel options that are convenient, personalized and competitively priced with amenities. New research from the Global Business Travel Association (GBTA), in partnership with HRS, highlights these preferences while also demonstrating that many corporate travel buyers underestimate how important these elements are for their travelers. Booking: Addressing Gaps Between Buyers and Travelers The vast majority of buyers and travelers agree that factors like proximity to work engagement (92% travelers, 99% buyers) and price (85% travelers, 94% buyers) are important in selecting a hotel. H...

Amsterdam Hotel Market – Rate Growth Paves the Way

Mattia Cavenati | July 10, 2019

By Mattia Cavenati, Sophie Perret Amsterdam is in the province of North Holland, in the heart of the Randstad, Europe’s sixth-largest metropolitan area. The city of Amsterdam is the capital and the largest city in the Netherlands, with a population of just over 850,000 recorded in 2018. While Amsterdam is known globally for its historic canals, art museums (Rijksmuseum, Van Gogh Museum), red-light district and ‘coffee’ shops, it is also a significant European financial centre. Approximately 2,000 foreign companies have established offices in the Amsterdam metropolitan area, and more than 200 of these companies have headquarters in th...

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