3 Reasons You Can’t Trust RevPAR
HotStats | October 14, 2019
Revenue per available room, or RevPAR, has historically been the most widely used metric for benchmarking performance in the hospitality industry. Its success as a key performance indicator or KPI is the result of its efficiency and simplicity. RevPAR is efficient because it combines the results of both occupancy and average rate into one number. And it’s simple, because all you need to calculate it is occupancy and average rate: RevPAR = Occupancy * ADR But its simplicity and straightforwardness conceal its faults and limitations. Here are three reasons you can’t put all your eggs in the RevPAR basket: 1. RevPAR does not measure...
Travel Trends Index: Strength of Domestic Leisure Travel Carries Weaker Business, International Inbound Travel
U.S. Travel Association | October 8, 2019
WASHINGTON (October 8, 2019) — Travel to and within the United States grew 3% year-over-year in August, according to the U.S. Travel Association's latest Travel Trends Index (TTI), marking the industry's 116th straight month of growth. The bright spot in the TTI was the strength of the domestic leisure travel segment, which expanded 4% while vacation intentions reached their highest level in 2019 thus far. However, forward-looking bookings and search data indicate there may be uncertainty on the horizon for the domestic segment: the Leading Travel Index (LTI), the TTI's predictive element, projects domestic travel growth will soften to j...
2019 HVS Lodging Tax Report – USA
Thomas A. Hazinski | October 7, 2019
By Thomas A. Hazinski , Joseph Hansel State and local governments charge lodging taxes on the short-term stays at hotels, motels, bed-and-breakfasts, and other lodging accommodations. The rate of lodging taxes across the United States varies at a state, county, and city-level. Though the name of the tax may vary—lodging tax, transient tax, occupancy tax—the imposition of lodging taxes is a crucial funding source of revenue for a number of state and local governments. For example, average state lodging tax revenue grew at a rate of 2.92% from 2017 to 2018. Tax revenue from lodging comes from ad valorem lodging taxes and excise taxe...
Year of Profit Growth Continues at U.S. Hotels
HotStats | October 1, 2019
Key Takeaways: While a large portion of the global industry is having trouble driving profit, U.S. hotels are hitting a purple patch. U.S. hoteliers are doing a strong job of flexing cost, as expenses, including payroll, continue to rise on a YOY basis. It’s not all peachy. New York, for instance, has had only one month so far this year of YOY profit growth—June, at only 0.6% growth. GOPPAR increased 1.4% year-over year in August, matching RevPAR growth, which also clocked in with a positive 1.4% gain, according to monthly data from HotStats. August continued a streak of GOPPAR growth in 2019, with the only nega...
The Global Construction Pipeline Ascends to New Record Highs
Lodging Econometrics (LE) | September 27, 2019
September 27, 2019 – PORTSMOUTH, NH - Lodging Econometrics (LE) recently compiled construction pipeline counts for every country and market around the world. Their analysts state that the total global construction pipeline ascended to a record high of 14,051 projects/2,327,923 rooms, a 9% increase in projects and an 8% increase in rooms year-over-year (YOY). The report summarizes development in 176 countries worldwide. With the exception of Latin America, all regions of the globe either continued to set record high pipeline counts or have already settled into topping-out formations amidst concerns of a worldwide economic slowdown. The fa...
2019 in the Caribbean Region: ‘Cause Every Little Thing Gonna Be Alright
Kristina M. D'Amico | September 26, 2019
By Kristina M. D'Amico Strong Year-to-Date Performance, Bolstered by ADR Increases The Caribbean islands have long been established as a popular travel destination for U.S., Canadian, and European travelers. Tourism to the islands is highly dependent upon the availability of transportation. Cruise ships and airlines are responsible for the vast majority of visitor arrivals to the islands, with air service the method of transportation for almost all of the tourists requiring overnight accommodations. Consequently, the availability and caliber of air service to the local airports has had a material influence on the level of tourism to ...
Taking the Pulse of the Nation’s Largest Hotel Markets
Rodney Clough | September 25, 2019
By Rodney Clough On recent visits to Las Vegas to host an internal training meeting at Mandalay Bay and then to complete a consulting engagement at a suburban limited-service hotel, I found the city to be extremely active. This was reflective in the statistics for the hotel market, with citywide occupancy approaching 90%, according to the Las Vegas Convention and Visitors Association. There were no discernable signs of the city’s heightened activity slowing down, yet. With all this talk of a pending economic slowdown and lackluster RevPAR growth nationwide, I thought I would check with some of my firm’s C&V leaders to see what they...
U.S. Hotel Development Cost Survey 2018/19
Luigi Major | September 23, 2019
By Luigi Major In 2018/19, the national lodging market continued to climb to new heights, albeit at a more moderate pace than in previous years. In 2018, hotels in the United States operated at the highest occupancy and average rates ever recorded, with both metrics registering additional growth during the year-to-date July 2019 period. While the pace of new hotel development and the entrance of new supply has remained tamed when compared with the previous cycle, this pace has been accelerating, as evidence by increases in supply in 2018 and 2019, as well as the number of hotel rooms under construction as of mid-year 2019. Through year-end...
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Breaking News
BENCHMARK® Names Bill Lee General Manager for Hilton University of Florida Conference Center Gainesville
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IHG Signs With Tan Holdings for Management of Fiesta Resort Guam
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