cbre hotels
Guest Loyalty Programs Provide, But They Cost
Robert Mandelbaum, Christine Bang | September 5, 2023
By Robert Mandelbaum and Christine Bang Over the years, the fees hotel owners pay to franchise companies have typically grown at a pace greater than the rise in hotel rooms revenue. Most franchise-related fees are charged as a percent of rooms revenue, and therefore, by assessing the relative changes in rooms revenue and franchise fees we can make some assumptions. In 2021, acknowledging the financial stress hotel owners faced during the pandemic, the franchise companies were sympathetic and provided some reprieve. While rooms revenue increased by 55.4% in 2021, total franchise-related fees rose by just 45.9%. Equilibrium returned in ...
CBRE Hotels Reduces Near-Team Outlook Due to Softer Summer Demand
CBRE Group, Inc. | August 17, 2023
Dallas – August 17th, 2023 – CBRE is reducing its forecast for hotel performance this year, as weaker-than-expected summer demand resulted in a shortfall in Q2 2023 revenue per available room (RevPAR). CBRE has revised its forecast for 2023 RevPAR to $96.64, up 4.6% year-over-year, but down $1.25 from its previous forecast in May 2023. The revision is predicated on a 70-basis-point (bps) decrease in expected occupancy compared with the earlier forecast. Average daily rate (ADR) is expected to increase by 3.6% in 2023, down 10 bps from the previous forecast. CBRE’s baseline-scenario forecast anticipates 1.6% average GDP growth and a...
As Occupancy Stalls, Parking Drives Hotel Revenue Growth
Todd Casper | July 6, 2023
By Robert Mandelbaum, Todd Casper Based on our February 2023 Hotel Horizons® report, CBRE is forecasting that total hotel revenue for the average U.S. hotel returned to pre-COVID levels in 2022. This occurred despite the fact that the average occupancy for U.S. hotels is not expected to exceed 2019 levels until 2026. With occupancy levels lagging during the post-COVID recovery and guest counts depressed, hotel owners and operators have had to look for alternative sources of revenue beyond the rental of guest rooms to make up for the income deficits. For some hotels in the U.S., parking has become a profitable source of revenue since CO...
U.S. Hotel Owners Eyeing Interest Coverage
Bill Grice and Robert Mandelbaum | June 1, 2023
By Bill Grice, Robert Mandelbaum According to CBRE’s February 2023 Investment Performance forecast, total revenues for the average U.S. hotel returned to 2019 levels in 2022, but the recovery of hotel profits will be delayed until later this year. Hotel franchise and management companies have benefited the most from the ongoing revenue recovery because the fees they receive are frequently earned as a percent of revenue. However, for many hotel owners, along with their lenders and investors, the lag in the return of profits has been a hardship. Afterall, it is the profits of hotel operations that enable owners to pay their debt obli...
Loyalty Programs Should Help Soften Impact of Any Economic Downturn on Hotel Sector
CBRE Hotels | April 11, 2023
A record number of loyalty program members should help hotel brands lower their customer acquisition costs, increase direct-to-consumer engagement and offset any occupancy shortfalls during an economic downturn. Direct access to a base of loyal customers is a benefit to owning and operating a branded hotel. Loyalty members can help drive occupancy during off-peak periods or weaker economic conditions. Loyalty members redeemed a record number of points in 2022 that were earned and saved during the pandemic. Publicly available loyalty program metrics of five major U.S. hotel brands suggest that it may take may take more points than in the...
Hotel “Broker” vs. Trusted Advisor
Robert J. Webster | April 4, 2023
By Robert J. Webster When I first started out in hotel brokerage back in the late 1980s, the market was unsophisticated and had not adopted the fiduciary focus that was required to establish trust. Consequently, the term hotel “broker” had mostly a negative perception. Over the course of the past 35 years, for many professionals, “broker” has moved to a role as a trusted advisor for those who passionately make paramount their fiduciary responsibilities. In this article, I would like to distinguish the difference between the negative connotation of “broker” from the role of a trusted advisor. First and foremost, trusted a...
CBRE Forecasts Continued Hotel Recovery in 2022 Despite Increasing Risks
CBRE Group, Inc. | March 21, 2022
Dallas, TX – March 21, 2022 – CBRE Hotels Research has raised its forecast for 2022 average daily rate (ADR), Occupancy and Revenue per available room (RevPAR) to reflect the stronger-than-expected fundamental performance in the fourth quarter. Other factors contributing to the improvement include below-average supply growth, strong domestic leisure trends, the resumption of inbound international travel and a predicted return to office later this year. CBRE made the changes despite heightened uncertainty and increasingly limited visibility due to geopolitical risks and inflationary pressure. CBRE now forecasts RevPAR to reach 2019 no...
CBRE Forecasts Continued Hotel Recovery in 2022 Despite Increasing Risks
CBRE Group | March 17, 2022
Dallas, TX – March 17, 2022 – CBRE Hotels Research has raised its forecast for 2022 average daily rate (ADR), Occupancy and Revenue per available room (RevPAR) to reflect the stronger-than-expected fundamental performance in the fourth quarter. Other factors contributing to the improvement include below-average supply growth, strong domestic leisure trends, the resumption of inbound international travel and a predicted return to office later this year. CBRE made the changes despite heightened uncertainty and increasingly limited visibility due to geopolitical risks and inflationary pressure. CBRE now forecasts RevPAR to reach 2019 no...
1
Technology
2
Appointments/People on the Move
3
Operations
4
Industry Happenings
5
All Things Independent
Today's News
PPDS Launches New Philips Professional Soundbar Bringing Powerful Audio Experiences to Hotel Rooms With Philips Mediasuite TVs
Travel Outlook Partners With MosaicVoice To Bring the Power of Artificial Intelligence to the Hospitality Industry’s Leading Call Center
Operto Accelerates PMS Connectivity With Hapi Integration Platform
Federal Government Shutdown Would Cost U.S. Travel Economy $140 Million Per Day According to U.S. Travel Association Analysis
As the first news aggregate for the hotel industry, Hotel-Online is the industry’s must-read daily news source for everything hotel curated for busy professionals. Sign up today for industry news delivered to your inbox.