Hotel Demand and GDP Have a Strong Correlation and That’s a Problem
Hotel Demand and GDP Have a Strong Correlation and That’s a Problem — By David Eisen

HotStats Limited · 10 Aug

Among the many delicious scenes from the movie "Goodfellas" is one where the characters of Ray Liotta and Joe Pesci burn down a restaurant because its credit has run out, putting an end to their graft. "And then finally, when there's nothing left, when you can't borrow another buck from the bank, you bust the joint out. You light a match."

To Capitalize or Expense? The Answer Isn’t Always Clear
To Capitalize or Expense? The Answer Isn’t Always Clear — By Arlene Ramirez

HotStats Limited · 6 Aug

A quote in the 2008 novel "Paper Towns" by John Green reads: "The rules of capitalization are so unfair to words in the middle of a sentence." This droll observation is not at the crux of this blog — well, not that kind of capitalization — but it may be similarly comic for those in financial accounting within the hospitality industry.

Brush Up On Finance & Wine Economics This Summer, Selected By EHL Experts
Brush Up On Finance & Wine Economics This Summer, Selected By EHL Experts — By Beatrice Venturini

EHL · 3 Aug

Dr. Philippe Masset and Dr. Jean Philippe Weisskopf are both associate professors at EHL specializing in Empirical Finance and Wine Economics. They are founding members of the Alliance for Research on Wine & Hospitality Management and have written extensively on the subject. Here they share with us some useful tips on vital pre-learning material for any potential student of economics, equity, finance and management.

HVS Asia-Pacific Hotel Law Guide
HVS Asia-Pacific Hotel Law Guide — By Daniel J. Voellm, Eunice Wong

HVS · 3 Aug

The Hotel Law Guide helps serve hotel real estate owners, developers and operators as a reference for experienced and well-known lawyers and attorneys with a track record in Asia Pacific region. Each law firm highlights their representative attorneys with the type of services offered and notable projects.

Don’t Be Fooled by COVID Hotel Statistics
Don’t Be Fooled by COVID Hotel Statistics — By Larry Mogelonsky

Hotel Mogel Consulting Limited · 3 Aug

Imagine a quick mathematical scenario. Business drops 50% due to the lockdown earlier this year then you see a recovery of 50% of this number once the pandemic is over. Occupancy is back to normal, right? Not true; it is actually still down 25% from where it was before the drop.

Hospitality Financial Leadership – 7 Daily Revenue Audit Must Dos
Hospitality Financial Leadership – 7 Daily Revenue Audit Must Dos — By David Lund

The Hotel Financial Coach · 3 Aug

The hotel business is a retail business and in order to stay on top of your business you must fully and completely balance your daily revenues and settlements. Every day we begin anew and every day is a story unto itself when it comes to the revenues and settlements. I may sound like I am repeating "revenues and settlements," but it cannot be emphasized enough.

How Government Loan Assistance Has Helped Prop Up Hotel Profitability
How Government Loan Assistance Has Helped Prop Up Hotel Profitability — By David Eisen

HotStats Limited · 28 Jul

The tidal wave of COVID-19 has left many in the hotel industry gasping for air amid choppy financial waters. Luckily, governments across the globe have tossed hotels a much-needed financial floatation device.

How Hotel Asset Managers Can Create/Add Value To PE Funds During A Pandemic
How Hotel Asset Managers Can Create/Add Value To PE Funds During A Pandemic — By Alex Sogno

Global Asset Solutions · 27 Jul

The damage inflicted by COVID-19 cannot be underestimated, it is imperative that hotel owners, including Private Equity (PE) funds stay vigilant and have aligned interests with all concerned parties. What better way than to engage the likes of a Hotel Asset Manager (HAM) who is an extension of the PE fund with relevant industry know-how and expertise. He/she will provide an array of services which can help the hotels navigate this period. For this to happen effectively, PE funds need to trust and have faith in their hired HAM to perform as it is a two-way street.

Forecasting In A Time Of Unknowns
Forecasting In A Time Of Unknowns — By Alex Sogno

Global Asset Solutions · 22 Jul

With the advent of the 'new normal', hotel owners and operators must begin considering the various financial and operational scenarios in their forecasts extending into 2021. Accurate forecasting is notoriously tricky, even in "business as usual" scenarios. Often, some operators need more pressure to deliver detailed break-downs forecasts, and they rarely extend more than three months in the future. The objective of a forecast plan is to ask the hotel operator to propose tangible actions: to increase the performance of specific areas of the hotel, to manage the production of the personnel, to schedule productive activities, and to increase customer satisfaction.

How Consulting Data Can Help Build Your Profit Back
How Consulting Data Can Help Build Your Profit Back — By David Eisen

HotStats Limited · 21 Jul

The punches thrown by COVID-19 onto the hotel industry have been incessant. First, it landed a blow to public and employee health. Next came a punishing economic swing that knocked out nearly 200 million jobs globally.

Hotel Insurance Costs on the Rise
Hotel Insurance Costs on the Rise — By Robert Mandelbaum

CBRE Hotels · 21 Jul

As of the writing of this article we are in the early stages of evaluating the impact of the COVID-19 virus on the U.S. lodging industry. Owners and operators are discussing the potential use of business interruption insurance (BI) to cover expected losses in profits. Business interruption insurance covers the loss of income that a business suffers after a disaster. It is designed to put a business in the same financial position it would have been in if no loss had occurred. Owners and operators are encouraged to review their BI policies to determine if their businesses are covered from any losses attributable to the COVID-19 virus.

COVID-19’s Potential Lasting Impact on Fixed vs Variable Hotel Expense Ratios
COVID-19’s Potential Lasting Impact on Fixed vs Variable Hotel Expense Ratios — By Mark VanStekelenburg, Kannan Sankaran, Andrew Hartley, Vanessa Gonzalez

CBRE Hotels · 20 Jul

As a result of COVID-19, hotel operators have been forced to make tough decisions, including the most basic one on whether to keep the lights on. Many were required to close their doors after municipal mandates were put in place and some decided to remain open, despite record-low occupancy levels, to house pandemic-related first responders and other essential personnel related to the fallout from the spread of coronavirus, largely in place of more traditional sources of demand during "normal times".

Hospitality Financial Leadership – 3-Way Match
Hospitality Financial Leadership – 3-Way Match — By David Lund

The Hotel Financial Coach · 20 Jul

Internal controls in your hotel are critical and they need to be designed to keep your assets safe and your money where it belongs - with you and not in someone else's pockets. I have seen this go wrong way too many times and I also talk to many hoteliers that are oblivious to this level of control or they just don't see the importance of it.

How To Calculate And Monitor Your Break-Even Point
How To Calculate And Monitor Your Break-Even Point — By Alex Sogno

Global Asset Solutions · 17 Jul

As hotels begin to re-open, it is crucial that they're mindful of their Break-Even Point (BEP) to understand their cost levels and to determine what RevPAR level is necessary to re-open. COVID-19 presented many challenges for hotels who are currently striving to merely break-even instead of maximizing profit as usual. While hotels usually aim for 35% occupancy threshold, many are hoping that COVID-19 cost reductions will lower the breakeven threshold.

Hotel Lawyer: Franchise & Management Disputes in a Covid crucible
Hotel Lawyer: Franchise & Management Disputes in a Covid crucible

Hotel Law Blog · 17 Jul

If you are reading this, you are almost certainly in the hospitality industry, and you are most likely in a financial and emotional distress. During

The Bottom Line of Hotel Automation is…..well…., the Bottom Line!
The Bottom Line of Hotel Automation is…..well…., the Bottom Line! — By Jos Schaap

ROOMDEX, Inc · 14 Jul

Traditionally, hospitality has been a conservative industry when it comes to technology given that the focus has always been on face-to-face service between staff and guest. The central location for the majority of these interactions has been the front desk (or Front Office (FO) department). COVID-19, however, is changing all of this.

CMBS Special Servicing Roundtable for distressed hotel and retail projects
CMBS Special Servicing Roundtable for distressed hotel and retail projects

Hotel Law Blog · 13 Jul

It’s estimated that 20 percent of hotels in the U.S. have debt held in commercial mortgage-backed securities (CMBS). Among these hospitality industry

Hospitality Financial Leadership - The Paper Can’t Talk
Hospitality Financial Leadership - The Paper Can’t Talk — By David Lund

The Hotel Financial Coach · 13 Jul

In the hotel business, we have three equal pillars. The guest, the colleague and the money. We need to realize that the third pillar—the money, the owner, the P&L, the paperwork, whatever you want to call it—needs a proper voice. The right voice, a voice that speaks to the leadership and the highest purpose that a cornerstone of our business warrants. Far too often the voice of the money is scary stingy or downright mean. If the paper is going to have a voice, we want to ensure it's the proper one. The voice that will get and give equity to all our constituents.

Cornell Research Recap: Uncovering the attributes of sustainable earnings in the lodging industry
Cornell Research Recap: Uncovering the attributes of sustainable earnings in the lodging industry — By Linda Canina

Cornell · 13 Jul

New research from the School of Hotel Administration (SHA) shows that while earnings are used in the lodging industry to inform key financial decisions, from setting incentives for management contracts to determining capital allocations, little is known about the factors that can have a significant impact on achieving sustainable earnings in the industry.

Hotel Operators Must Be Flexible, Be Lean and React Quickly to Change, says HVS Webinar Panellists
Hotel Operators Must Be Flexible, Be Lean and React Quickly to Change, says HVS Webinar Panellists — By Russell Kett

HVS · 10 Jul

The issue of financing the cost of reopening the hotel sector was the hot topic tackled in the second hotel webinar organised by global hotel consultancy HVS, legal firm Bird & Bird, EP Hospitality and AlixPartners, which was held yesterday [8th July].

Breaking Even and the 5 Stages of Grief
Breaking Even and the 5 Stages of Grief — By David Eisen

HotStats Limited · 9 Jul

In 1969, Swiss-American psychiatrist Elisabeth Kübler-Ross published "On Death and Dying," which posited five stages of grief: Denial, Anger, Bargaining, Depression and Acceptance.

African Hotel Pipeline Resilient Despite Unprecedented Challenges
African Hotel Pipeline Resilient Despite Unprecedented Challenges — By Wayne Troughton

HTI Consulting · 8 Jul

Acknowledged as one of the African continent's leading hospitality investment experts, Wayne Troughton of HTI Consulting shared unique insights in the first 'Virtual Hotel Club' held in early July, a dynamic and informal Pan-African platform for hospitality industry stakeholders the way forward within the industry at this time of crisis.Data from the presentation was gathered from a survey that covered 14 regional and international operators active in the African hotel space (41 hotel brands and 219 projects currently under development). These included the likes of Hilton Worldwide, Marriot International, Radisson Hotel Group and Accor Hotels, amongst others.

ADA Defense Lawyer: ADA requires hotels to describe accessibility on website
ADA Defense Lawyer: ADA requires hotels to describe accessibility on website

Hotel Law Blog · 30 Jun

As ADA lawsuits continue target hotels, it is critical that hotel owners understand what the ADA requires during the online reservations process.

ADA Defense Lawyer: ADA Websiserial plaintiff rebuffed
ADA Defense Lawyer: ADA Websiserial plaintiff rebuffed

Hotel Law Blog · 29 Jun

ADA website cases continue to be filed against hotels nationwide, but some courts are pushing back against serial plaintiffs. My partner, Marty Orlic

Re-Negotiating Your Management Agreement: The Owner’s Perspective
Re-Negotiating Your Management Agreement: The Owner’s Perspective — By Alex Sogno

Global Asset Solutions · 26 Jun

COVID-19 introduced the hotel industry to a lot of uncertainties for the future. It also revealed several weak spots and high-risk areas within hotel management agreements (HMA's). As these weaknesses become more evident, it is important to decide which points to focus on, how they can be adapted moving forward, and how each party can make the necessary adjustments to help each other out.

Why Trophy Hotel Assets Make a Legacy?
Why Trophy Hotel Assets Make a Legacy? — By Korosh Farazad

Farazad Group Ltd. · 25 Jun

Trophy hotel is a term used in hospitality real estate to define a property in remarkably high in demand and either super prime or prime locations by investors. These assets are generally a status symbol with well-known name recognition, a landmark, iconic buildings located in prestigious prime address with strong underlying property fundamentals such as unique distinctive design architectures and the finest construction and highest quality finishes money can buy.