Why There Is More Than Just Analyzing RevPAR Index

HotStats | August 19, 2019

By Laura Resco Financial performance in the hospitality industry is traditionally measured in absolute terms: actuals for the relevant KPIs are compared against their budgeted numbers and, from this assessment, action plans are developed to correct course when needed. Moreover, in the presence of changes in market conditions, budgets are revised to make goals reflect the new business environment. This absolute method measures a hotel’s performance against a backdrop of external factors. And although this knowledge is crucial, it by no means suffices to grasp the entirety of an operation’s financial health. The relative method, on th...

Hospitality Financial Leadership: Top 10 Hotel Budget Review Tips

David Lund | August 19, 2019

When you are reviewing a hotel budget you want to ask the right questions—the ones that will yield the biggest treasure. You see, the game of budgets in most hotel companies where the corporate or regional master needs to approve the plan before it is presented to the owner, is a game of under promise now and hopefully over deliver next year. Some people I know call this the practice of sandbagging. It is not mean or deceitful, rather it is a game. If you are asleep at the switch when you are doing the review, well, that is your problem. Operators are always looking for items they can keep in their back pocket for the rainy day ahead....

Sonnenblick-Eichner Company Arranges $46,000,000 of First Mortgage Financing for Maison Dupuy, New Orleans, Louisiana

Sonnenblick-Eichner Company | August 13, 2019

Beverly Hills, CA (August 13, 2019) -- Sonnenblick-Eichner Company announced today that it has arranged $46,000,000 of interim first mortgage financing for the Maison Dupuy, a five-story, 200-room, full-service, boutique hotel located in the world-famous French Quarter of downtown New Orleans, LA. Proceeds from the five-year non-recourse LIBOR-based loan will be utilized to pay off the existing indebtedness and provide funds for the renovation of the property. The Hotel is excellently located just two blocks off of Bourbon Street at the corner of Toulouse Street and Burgundy Street. The French Quarter is the center of New Orleans’ hospit...

Hospitality Financial Leadership: Subsidizing Your Company, Association Meeting Costs / David Lund

David Lund | August 5, 2019

By David Lund In my recent travels working with clients and delivering keynotes as well as financial leadership workshops for management teams and hotel associations, I noticed an interesting way that more than one client used to “subsidize” their meetings—reducing their costs—and I wanted to share it with you. Having your regional meeting, national meeting or hosting your association event is expensive. There are travel costs, perhaps speaker fees and venue costs. Depending on the type of event there can be accommodations, meals, audiovisual and meeting room rentals. For companies, there is also lost productivity cost associate...

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...

Creating a Financially Engaged Team: What to Avoid

David Lund | July 29, 2019

By David Lund Creating a financially engaged leadership team takes time, commitment, respect for fair play, resources and a sense of adventure. When creating something new, for me there was always an element of the unknown. In writing my book, it occurred to me that if I had a book like this 25 years ago, some of the guesswork would not have existed. The adventure however always remained and that was the great part about embarking on a mission that had a team working together in an attempt to score big. But, I was cognizant that when working with people, I was the example that got watched, yes, everything I did was watched. It was cl...

What Is “Hospitality Financial Leadership Anyway?”

David Lund | July 1, 2019

By David Lund This is a question I have been asked many times. Exactly what is financial leadership and why hospitality? Finding the three words together “HFL” in a sentence three years ago was not possible. I know because I tried to google them and came up with a bunch of leadership consultants and courses. Even the words “financial leadership” revealed surprisingly little. Some tidbits about CEO’s and their role but nothing any broader. Financial leadership is in my opinion the cornerstone of any manager, executive or leader’s business acumen. It enables the individual to see the importance of being plugged into the strate...

Rainmaker VP to Participate in Panel Discussion at HSMAI ROC

Rainmaker | June 13, 2019

ALPHARETTA, GA. — June 13, 2019 — The Rainmaker Group today announced that Dan Skodol, the company’s vice president of revenue analytics, will participate in a panel discussion at HSMAI’s Revenue Optimization Conference, which will be held June 18-19 at the Minneapolis Convention Center in Minneapolis, MN. The company is a Platinum Sponsor of the event. Skodol will take part in the panel discussion entitled, “Think Differently About Revenue: Building a Better Room Merchandising Plan.” In this session, a group of industry professionals will discuss potential benefits of dynamically yielding at a granular, room type level. They ...

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