What Is TRevPAR (Definition and Why It Matters)?
David Eisen | June 10th, 2019
Hyatt Enters Agreement With Sun Hung Kai Properties Limited for 665-Room Hyatt Centric Victoria Harbour Hong Kong
Hyatt Centric | May 28th, 2019
revpar
What Is TRevPAR (Definition and Why It Matters)?
David Eisen | June 10, 2019
By David Eisen In a previous blog post, I took aim at RevPAR. My pursuit: to puncture the long-held notion that it’s the most exemplary data point to consult within the hospitality industry. And, according to one comment, I succeeded in doing so (thank you, Don Weintraub, you made my mother very proud). My thesis was not that RevPAR is obsolete; following it is still necessary, especially since RevPAR tracks revenue derived from the rooms department, the largest source of revenue for a hotel. It’s akin to tracking cap rates when investing in hotels—one data point but not the end-all. RevPAR (a combination of rate and occupancy) is...
Hyatt Enters Agreement With Sun Hung Kai Properties Limited for 665-Room Hyatt Centric Victoria Harbour Hong Kong
Hyatt Centric | May 28, 2019
CHICAGO (May 28, 2019) – Hyatt Hotels Corporation (NYSE: H) announced today that a Hyatt affiliate has entered into an agreement with an affiliate of Sun Hung Kai Properties Limited to rebrand the 665-room Hotel VIC on the Harbour to Hyatt Centric Victoria Harbour Hong Kong by the third quarter of 2019. This will be the first Hyatt Centric hotel in the Greater China region, joining the brand's inaugural property in Asia, Hyatt Centric Ginza Tokyo which opened in 2018. Tailored for socially connected guests seeking shareable moments, the hotel's social areas and food and beverage concepts were designed by Hong Kong-based architect ...
HVS Market Pulse: State of Hawaii
John Berean | May 21, 2019
By John Berean May 21, 2019 -- Hawaii experienced another stellar year of RevPAR performance in 2018, bolstered by improved airlift and a strong domestic economy, which resulted in another record year of visitor arrivals. Despite these impressive achievements, the year was not without its share of difficulties, including volcanic eruptions at Kīlauea, disruptions caused by Hurricane Lane and Hurricane Olivia, and an extended 51-day hotel worker strike. Nevertheless, the Hawaii Department of Business, Economic Development & Tourism (DBEDT) forecasts sustained year-over-year growth in visitor arrivals through 2022, which should suppo...
RevPAR Is Only One Piece of the Picture
David Eisen | May 17, 2019
By David Eisen Imagine you're scouting a young baseball player or footballer—someone experts have pegged as the next Derek Jeter or Lionel Messi. You can't, however, just take their word for it; you have to see their performance for yourself and also dig into the numbers—into how they rate statistically. Now, imagine you are only allowed to consult one statistic, such as batting average (hits divided by at-bats) or goals scored. Then, imagine that within this context, our Jeter heir apparent is hitting a more-than-respectable .315, and our Messi-to-be is his team's leading goal scorer. Great news, right? Well, yes and no. ...
Hyatt Partners With 3M Hotels Group for Hyatt Place Krakow Marking Return of Hyatt Flag to Poland
Hyatt Place | March 27, 2019
CHICAGO (March 27, 2019) – Hyatt Hotels Corporation (NYSE:H) announced today that a Hyatt affiliate has entered into a franchise agreement with 3M Hotels Group for the first Hyatt hotel in Krakow, marking the return of the Hyatt brand to Poland. Hyatt Place Krakow will feature 216 spacious guestrooms and will be managed by Hotel Professionals Management Group. The hotel is expected to open in 2021. The Hyatt Place brand is rooted in extensive consumer insights indicating that guests seek stylish, comfortable, seamless experiences that accommodate their lifestyles and familiar routines. To embody this, the brand offers casual hospi...
Late Cycle Supply Sources of the Occupancy Gap
Bram Gallagher | October 24, 2018
By Bram Gallagher The present hotel cycle is defying conventional expectations of late-cycle Revenue Per Available Room (RevPAR) behavior. Over the previous two cycles, recovery began primarily with occupancy. As the cycles continued, average daily rate (ADR) began to rise. Eventually, the increases to ADR were the dominant contributor to RevPAR growth, and occupancy leveled off or even slightly declined. These cycles, occurring from August 1992 to November 2002 and November 2002 to May 2010, lasted approximately ten and eight years, respectively. Well into the ninth year of its current cycle, we would expect that the hotel market would...
Hospitality Financial Leadership – Understanding RevPAR and RevPAR Index
David Lund | October 15, 2018
RevPAR and RevPAR index are different and I'm going to explain them both in this article. Let's start with RevPAR It is the cornerstone of the hotel world and rightfully so. It is the product of occupancy and rate smashed together. The acronym stands for "revenue per available room." In a simple example: If my hotel was 60 percent occupied last night and my average rate was $100, my RevPAR would be $60 (100 x .6). The other way to calculate this would be to take the total rooms in my hotel—in this example it is 500—and divide that by the total room revenue last night. At 60 percent that means I had 300 rooms occupied and I w...
Beyond RevPAR: Understanding Total Group Revenue for Hotels
Dan Skodol | September 11, 2018
By Dan Skodol, Vice President of Revenue Analytics at Rainmaker Once upon a time, group business was essentially a filler for the guest rooms that transient business didn't occupy. In today's world of all-time occupancy highs,1 group business tells a different tale. When hotel owners examine their full profit picture, many now understand that group business and the revenue it generates is a major player in their overall revenue management (RM) strategy. However, groups are a challenge to revenue manage, as they're made up of many moving parts. To be successful in the group arena, hotels need to have the appropriate tools and strategies ...
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