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mckenna luke

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mckenna luke

mckenna luke

HVS Outlook 2023: Beyond the Recovery

Anne R. Lloyd-Jones | January 23, 2023

By Anne R. Lloyd-Jones, McKenna Luke Despite persistent high inflation, an active Fed, and accelerating recessionary concerns, the lodging industry sustained the strong growth recorded in Q2 and Q3 of 2022 through the balance of the year. Transient demand continued to lead the recovery, surpassing 2019 levels in 19 of the past 21 months. The leisure segment remains a dominant influence, with business demand returning at a slower pace, although increasing levels of “bleisure” demand are blurring the distinction between these two sectors. Group demand rebounded to roughly 80% of 2019 levels; after the initial return of small to medium-si...

COVID-19’s Impact on the Albuquerque Lodging Market

McKenna Luke | April 13, 2021

By McKenna Luke Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. According to Visit Albuquerque, Albuquerque’s RevPAR fell roughly 47% in 2020 from 2019 levels, driven primarily by occupancy losses of up to 33% compared to 2019 and ADR declines of up to 21%. The occupancy loss was not only a factor of limited demand caused by the travel halt at the onset of the pandemic, but also of New Mexico being closed to travelers from outside the state for most of the year. As many other markets in the United States were supported mid-summer by leisure guests, ...

HVS Market Pulse: Columbia, South Carolina

McKenna Luke | September 20, 2019

By McKenna Luke Columbia, the state capital of South Carolina and the home of the University of South Carolina (USC), is a growing metroplex. Not only is the city expanding with notably annual population growth, the MSA population is expected to increase from roughly 800,000 to over 1,200,000 by 2045. The recent and current growth within the hospitality industry has been driven by growing population, visitation, new and expanding companies, and a pro-business environment. Fort Jackson remains a strong presence in the market, and over 100,000 family members attend basic-training graduation annually; several hoteliers in multiple submarkets ...

Impacts of Major Brand PIPs: Industry Perspectives by HVS / By McKenna Luke, Dinaker P. Mallya

McKenna Luke | February 20, 2017

Limited-service hotel brands have emerged as some of the top choices for consumers and investors alike. With a national reputation for value and quality, brands such as Hampton by Hilton and Holiday Inn Express have created high expectations for guests across the board. For hotel owners, these brands have created a product that produces strong RevPAR index and house-profit levels. These brands have acknowledged the wide array of product offering across their assets, mostly due to the aging physical condition given more relaxed standards during the Great Recession and need for refurbishment across hundreds of hotels nationwide. In this a...

Key Considerations for Historic Building Conversions

Shannon L. Sampson | February 14, 2017

By Shannon L. Sampson , McKenna Luke , Mallory B. Hall While conversions of historic buildings to high-end hotels have been taking place for decades, the trend has accelerated over the past several years, driven by a demand for one-of-a-kind hotel designs. The following looks at some of the challenges and rewards developers and hotel companies can expect when tackling a historic conversion project. The Opportunities The redevelopment of historic buildings offers quantitative and qualitative rewards, and these apply to both the developers and the communities and neighborhoods in which their projects are set. On a cost basis, for example,...

Four Key Takeaways: 2015 North America Tourism & Hospitality Investment Conference

HVS | November 17, 2015

By Heidi Nielsen, McKenna Luke, and Kirby D. Payne Foreign Direct Investment in U.S. enterprises has doubled over the past 15 years, a sign of investor confidence in American real estate, including hotels. The NATHIC event also spoke to what moves will set hoteliers ahead in the current market. Foreign Direct Investment Money for hotel development and transactions in the U.S., Mexico, and Canada is coming increasingly from overseas. Foreign Direct Investment (FDI), generally defined as an investment entity's controlling interest in an asset in another country, was the focus of this year's North American Tourism & Hospitality Investm...

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