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Gradual Slowdown in U.S. Hotel Performance to Continue

CBRE Hotels | May 29, 2019

Atlanta – May 29, 2019 – The U.S. lodging supply will increase at an annual pace greater than the long-run average through 2022, according to CBRE Hotels Research's latest report. Meanwhile, the annual rise in the demand for these new hotel rooms is projected to average roughly three-quarters of its respective long-run average. The result is declining occupancy forecasts for the U.S. lodging industry in both 2020 and 2021. According to the June 2019 edition of Hotel Horizons®, CBRE Hotels Research projects U.S. national occupancy levels to remain flat in 2019 at 66.2 percent, then decline to 65.7 percent in 2020 and 64.6...

Attrition and Cancellation Revenue

Robert Mandelbaum | May 20, 2019

By Robert Mandelbaum Per the Uniform System of Accounts for the Lodging Industry (USALI), the income received from transient and group guests that fail to occupy a room, or cancel a reservation in the prescribed timeframe, and for which payment was guaranteed on an individual basis, is recorded as No Show Revenue in the Rooms Department. This source of revenue is frequently difficult to identify as a discrete source of income on the standard hotel operating statement format. On the other hand, the fees hotels receive from the cancellation of group meetings are typically presented as a separate line item in Miscellaneous Income. Because ...

Hotel Spas: Not Just for Resorts Anymore

the Authors | March 25, 2019

By Mark VanStekelenburg and Jenna Finkelstein According to the December 2018 edition of CBRE's Hotel Horizons®, the annual growth in RevPAR for U.S. hotels is forecast to decelerate from 2.8 percent in 2018 to 0.1 percent in 2021. As the main source of hotel revenue is plateauing, hoteliers are looking up and down their operating statements to find alternative sources of income. For hotels that operate a spa, this department has stood out as a bright spot not only for growth in revenue, but gains in profits as well. The slowdown in revenue growth will be particularly acute in the nation's major markets. Since 2010, the majority of n...

CBRE Research Forecasts Healthy RevPar Growth for U.S. Hotels in 2019 and 2020

CBRE Hotels | March 13, 2019

Greater Los Angeles area hotels are likely to experience another year of occupancy and room rate increases , driven by strong employment growth and travel demand Los Angeles – Mar. 13, 2019 – Continued favorable economic fundamentals are expected to lead to U.S. hotel rooms revenue per available room (RevPAR) growth of 2.5 percent in 2019 and 2.0 percent in 2020, according to the latest forecast from CBRE Hotels Americas Research. "Supply, demand and pricing in the U.S. lodging industry are very similar to what we have observed the past few years," said R. Mark Woodworth, senior managing director of CBRE Hotels Americas Rese...

CBRE Issues U.S. Lodging and 2019-2020 Historic Hotels Forecast at Historic Hotels of America Annual Conference

CBRE Hotels | January 10, 2019

Historic Hotels achieve a substantial premium in ADR and RevPAR over comparable contemporary hotels. RevPAR forecast to grow faster for Historic Hotels than upper upscale Hotels. WASHINGTON, DC – January 10, 2019 The outlook for the U.S. lodging industry, particularly historic hotels, continues to be extremely strong, according to CBRE Hotels' Americas Research (CBRE). For the fourth consecutive year, CBRE Hotels' Americas Researchpresented a Historic Hotels of America – CBRE five-year forecast at the Historic Hotels of America annual conference. CBRE relies on historical hotel performance data from STR, and economic forecas...

U.S. Lodging Performance Fell Short of Budget in 2017

Robert Mandelbaum | October 22, 2018

by: Robert Mandelbaum In 2017, the actual achieved levels of occupancy, average daily rate (ADR), total revenue and profits for U.S. hotels were less than their respective budgeted amounts. After a five-year period (2011 through 2015) of extremely accurate budget projections, this marks the second consecutive year that owners and operators failed to meet their operating goals. As general managers, controllers, and directors of sales begin the process of preparing their budgets and marketing plans for 2019, we present the results of our most recent look at the budgeting accuracy of U.S. hotel operators. From CBRE Hotel's Americas Researc...

Ten Years Later: Has the U.S. Lodging Industry Really Recovered?

Robert Mandelbaum | September 20, 2018

By Robert Mandelbaum and Keval Rama Lodging is a cyclical industry meaning that it passes over time through four distinct phases: peak, contraction, trough and expansion. Most industry participants believe that 2007 was the previous peak of the current business cycle following six years of expansion from the 2001 industry recession. According to STR, the demand for lodging increased for six consecutive years from 2002 through 2007, while average daily room rates (ADR) grew in excess of 4.5 percent during the latter four years. Per CBRE Hotels' Trends® in the Hotel Industry survey, gross operating profits (GOP) were growing at a 10 p...

Cost Controls Perpetuate U.S. Hotel Profit Growth In 2017

Robert Mandelbaum | July 17, 2018

By Robert Mandelbaum U.S. hoteliers enjoyed an eighth consecutive year of increasing profits in 2017 despite another slowdown in the rate of revenue growth. According to the 2018 edition of Trends® in the Hotel Industry, total operating revenue increased by 2.0 percent in 2017 for the average hotel in its survey sample. Fortunately, by limiting the growth in operating expenses to 1.9 percent, managers at the Trends® properties realized a 2.2 percent increase in gross operating profits (GOP) for the year. Trends® in the Hotel Industry is the CBRE Hotels' Americas Research's annual survey of operating statements from thousands...


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