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HVS Takeaways – The Lodging Conference
Luigi Major, MAI | October 11, 2024
By Luigi Major, MAI This week marked another successful and highly attended Lodging Conference. HVS was proud to sponsor and speak at the event. Our recap on the conference sentiment follows. The event was marked by cautious optimism as industry professionals assessed the current state of the U.S. hotel market. With the Federal Reserve lowering interest rates, many believe that the worst effects of rate hikes and inflation are behind us, offering hope for a rebound in hotel transactions after the significant slowdown over the last 18 months. The upcoming election and intensifying geopolitical concerns continue to somewhat balance the r...
European Hotel Transaction Volumes Increased by 123% in the First Half of 2024
Maxime Gauthier | October 10, 2024
Coming out of a high-inflation, high-interest-rate environment, which negatively impacted hotel transactions in Europe in 2023, transaction activity increased to the highest levels since 2019 in the first half of 2024. Reaching €10.6 billion, the total volume transacted increased by 123% year-on-year, already reaching the total volume for the whole of 2023. There were 20% more transactions this semester, with a decrease of 11% in the number of rooms per hotel, translating into a 30% increase in price per room over H1 2023. General Commentary Transaction volumes were quite evenly spread over the semester, with January...
Market Snapshot: Asia Pacific 2024
Hok Yean CHEE | October 9, 2024
In 2023, hotel transaction volume in the Asia Pacific recorded approximately USD11.7 billion, a 12% decrease from USD13.3 billion from the previous year. The decline in transaction activity can be attributed to the high interest environment, buyer and seller price expectation gap, and a lack of suitable or available hospitality assets in the market. Australasia (Australia and New Zealand), as well as Southeast Asia, observed decreases of 20% and 56% in transaction volume, respectively. However, the trailing 12 months have shown positive signs, with total transaction volume recording a 17% increase, reaching approximately USD12.1 billion. Thi...
September 2024 Hotel Industry Outlook: Anticipating Accelerated Growth
Anne R. Lloyd-Jones | October 4, 2024
After twelve months of declining occupancy and improving ADR from April 2023 through March 2024, the U.S. lodging market appears to have entered a period of relative stability, with changes in both metrics more subdued than in the recent past. However, as with most averages, these aggregate results comprise notable variations among individual markets and lodging segments. The meeting and group segment continues to increase, supported by both improving convention activity and continued growth in corporate group meetings and events. These trends are particularly beneficial to the luxury and upper-upscale segments of the market, as well as in...
London Market Pulse 2024 – Investor Confidence Renewed
Cassandre Pene | October 3, 2024
Owing to its rich cultural heritage, prestigious educational institutions and wide range of attractions across fashion, media and sports, London is a key destination for international visitors. In addition, its strong influence as a financial centre and a hub for technology and innovation defines it as a leading market in terms of hospitality and hotel investment. Despite its size, London’s accessibility through various international airports as well as the Eurostar high-speed rail service facilitates travel, ensuring a steady influx of both leisure and business travellers. These factors are expected to drive London’s continued success a...
Hotel Performance Outlook for Denver: Growth Picking Up Through 2026
Katy Black | October 2, 2024
For Denver hotels, the first five months of 2024 were somewhat volatile, with March declines being offset by April gains. This trend can be partially attributed to Easter falling in March this year. After two months of RevPAR declines in Denver in June and July, August was a stellar month for the city’s hotels, with the RevPAR increase nearing 10%. However, the declines in June and July resulted in little growth for the city in the summer of 2024, as overall RevPAR growth through August is less than 0.5%. No significant changes in the fourth quarter will likely result in little to no RevPAR growth in Denver from 2023 to 2024. This nomina...
A Brief Guide to Maximizing the Marketing and Buyer Activity of Your Hotel Listing
James Rebullida | September 30, 2024
Hotels are one of the few commercial real estate asset classes that have an operating business component. As such, selling a hotel is a complex process that requires strategic planning and execution to attract the most suitable buyer to successfully complete the transaction. As a hotel owner considering selling your property, you must understand how to maximize the marketing exposure and buyer activity for your listing. Here at HVS Brokerage & Advisory, we strive to follow a few key principles and best practices to enhance your property’s appeal, streamline the sale process, and ultimately secure a highly qualified buyer. These princip...
2024 HVS Lodging Tax Report – USA
Thomas Hazinski | September 24, 2024
Since room sales generate lodging tax revenues, an overview of hotel market trends provides a perspective on the industry's current and future fiscal impacts. While the negative impacts of the COVID-19 pandemic were unprecedented, as documented in our 2023 HVS Lodging Tax Study, nearly all lodging markets reached or exceeded pre-COVID average rates and revenue generation in 2022. The National Lodging Market has seen recent growth in occupancy, average daily room rates, and revenue per available room. The Average Daily Room Rate (“ADR”) represents the average revenue earned for each room rented in a hotel. Revenue per available room (“R...