It’s Time for Hotel Finance Teams to Re-Evaluate their Budget ‘Drivers’
It’s Time for Hotel Finance Teams to Re-Evaluate their Budget ‘Drivers’ — By Jill Wilder

Aptech · 14 Sep

As we are all aware, budgeting for 2022 will present some challenges. Without a crystal ball we are going to need to use our knowledge to form new ways to plan for our future. While historical drivers helped hoteliers in previous years with their future planning, it’s a whole new ballgame today, as the very way a hotel operates is radically different from even a year ago. As in the past, just comparing departmental profits from previous months is just one piece of the puzzle. To have better, more accurate budgeting numbers for the year ahead, hoteliers need to re-evaluate their drivers and establish a new baseline data set.

Hospitality Financial Leadership – Critical Importance of Accruals and Deferrals
Hospitality Financial Leadership – Critical Importance of Accruals and Deferrals — By David Lund

David Lund · 30 Aug

A lot gets written about certain things in the hotel industry and others not so much as a mention. I am not saying it is simply a matter of blatant favoritism or anything like that but it is not lost on me that certain items get the limelight. In this piece, I am going to shine a light on two of the hotel team’s third-line mainstays. This pair keeps us on track month after month and they need a little more respect.

Will That Be Cash, Card or Crypto for Your Booking?
Will That Be Cash, Card or Crypto for Your Booking? — By Larry Mogelonsky

Hotel Mogel Consulting Limited · 23 Aug

The first half of 2021 saw cryptocurrencies go from theoretical speculation amongst circles of computer geeks to a popular dinner conversation topic with a much more diversified pool of investors. Whether you deem this asset class as viable over the long-term or the purest form of bubble just waiting to burst, the sheer growth alone dictates that this is not a monetary system you can ignore any longer.

Why It’s Time for Hotels to Prioritize Long-Term Controlled Spending
Why It’s Time for Hotels to Prioritize Long-Term Controlled Spending — By Ryan Hamilton

SalesAndCatering.com, LLC · 17 Aug

After the year that was 2020, 2021 seems to be a period defined by cautious optimism. A world on the precipice of a long-awaited reopening, with a predicted surge of social and economic activity ready to shift our respective communities from the ‘new’ normal to the normal we once knew. The desire for this return is palpable and warranted, but we must acknowledge that much still remains uncertain in that same breath. Our attention is fixed on the future, but what does that future hold from an economic perspective? More importantly, what is the most fiscal path forward for businesses – especially those in sectors that were severely shuttered by the pandemic, like hospitality?

The Recipe For Hotel Food And Beverage Profitability
The Recipe For Hotel Food And Beverage Profitability — By Guy Maisnik

JMBM · 6 Aug

Getting the alchemy just right for food and beverage service in a hotel is challenging, but necessary if the hotel is to be successful.

Labor Cost Trends in 2020
Labor Cost Trends in 2020 — By Robert Mandelbaum, David W. Heath

CBRE Hotels · 2 Aug

Based on CBRE’s survey of monthly operating performance, U.S. hotels experienced a 58 percent decline in total hotel revenues from 2019 to 2020. This resulted in a decrease of 78 percent in profits at the Gross Operating Profit (GOP) level, along with a 107 percent fall off in Earnings Before Interest, Taxes, Depreciation, and Amortization.

ALIS Conference Perspectives
ALIS Conference Perspectives — By Rodney G. Clough

HVS · 2 Aug

The ALIS Conference came and went this week, bringing Downtown L.A. hotels to life with optimism and hope that normal for the hotel industry is coming in the not-too-distant future. Here are some collective takeaways from our team that was in attendance.

Future-Proofing UK Hotels
Future-Proofing UK Hotels — By Malcolm Kerr

Horwath · 28 Jul

Malcolm Kerr, Managing Director of Horwath HTL UK has been talking to prominent executives and advisors to get their perspective on the major challenges facing owners and how they are preparing for an uncertain future.

Hospitality Financial Leadership – GOPPAR Characteristics
Hospitality Financial Leadership – GOPPAR Characteristics — By David Lund

David Lund · 26 Jul

From time immemorial, revenue per available room, or RevPAR, has been the go-to key performance indicator in the hotel industry. A simple calculation of average daily rate and occupancy rate, it is often thought of as the barometer of health for a hotel by those who work in the industry and those who make a living analyzing it.

Positive outlook for the hospitality industry
Positive outlook for the hospitality industry — By Albian Albrahimi

Les Roches · 22 Jul

The hotel industry's recovery is accelerating, overcoming the crisis. In the first half of 2021, the stocks of the major hotel groups have recovered and outgrown the indexes. And the organizations are investing massively in new international offerings. For example, the Hilton group has announced the construction of 160,000 rooms over the next few years, while new entrants are benefiting from the support of the largest financial institutions.

How Fintechs are supporting the Hospitality Industry
How Fintechs are supporting the Hospitality Industry — By Albian Albrahimi

Les Roches · 22 Jul

Fintechs have experienced a significant development over the last five years. Some smart technologies are emerging with obvious potential for the hospitality industry such for making booking reservation and payments, often linked to management systems of access to rooms and services. The pandemic has accelerated the implementation of these innovations.

What Are Customer Acquisition Costs And Why Is It Important To Calculate Them?
What Are Customer Acquisition Costs And Why Is It Important To Calculate Them? — By Meng-Mei (Maggie) Chen

EHL · 21 Jul

This article lays out why it's important to differentiate distribution costs from customer acquisition costs (CAC). Distribution costs refer to commissions paid to travel agents, OTAs, discounts to tour operators, etc. Whereas customer acquisition costs include the distribution costs, website-related costs, sales & marketing department salaries (after all, they are here to acquire customers), social media costs, advertising, loyalty and brand-related expenses, channel manager fees, etc.

Hotel Spas Give Expenses A Facelift
Hotel Spas Give Expenses A Facelift — By Rayna Katz

HotStats Limited · 21 Jul

The pandemic has made it difficult for anyone to relax. Beyond being a drag on a hotel’s core business—room sales—it’s also been an assault on ancillary revenues, such as spa business.

A Hotel Owner’s Guide to Building Maintenance
A Hotel Owner’s Guide to Building Maintenance — By Marc Fleischer

Strategic Solution Partners · 19 Jul

Hotel asset value is determined using multiple calculations, math problems, and sometimes magic tricks, but there are three critically important aspects of the physical plant that can make or break a hotel investment. As an owner or asset manager, keep these three areas on your property checklist, and follow up with a hotel engineering team regularly. Ignore these at your peril!

Hospitality Financial Leadership – How To Prepare The Annual Budget In 1 Hour
Hospitality Financial Leadership – How To Prepare The Annual Budget In 1 Hour — By David Lund

David Lund · 12 Jul

Over the many years I have worked in hotels, I have had the pleasure of working with some exceptionally fine and talented individuals. This story is about one GM and his penchant for simplicity.

Planck’s Principle and Hotelier Skepticism for Blockchain
Planck’s Principle and Hotelier Skepticism for Blockchain — By Larry Mogelonsky

Hotel Mogel Consulting Limited · 12 Jul

This year has already seen many of the various cryptocurrencies grace the front page of major news outlets. This trend will continue throughout 2021 and, by our predictions, for the rest of everyone’s natural lifespans who happen to be reading this article. Pure hype or not, the technologies underpinning these altcoins are going to keep expanding and maturing as the applications for blockchains are too great to ignore.

Making 2021 The Year To Solve The Chargeback Problem
Making 2021 The Year To Solve The Chargeback Problem — By Larry Mogelonsky

Hotel Mogel Consulting Limited · 8 Jul

Every dollar counts in the new normal. That’s because, even with all the cuts made during the pandemic, the costs of ramping operations back up with all the new safety requirements – while also servicing debt – are making hotels an increasingly difficult business to keep out of the red. Driving occupancy and maximizing total revenue per guest (TRevPAR) are the two top objectives we look at for properties nowadays, but there’s a hidden profit killer that you must also consider – chargeback disputes.

Touring NCREIF's Property Total Return Index
Touring NCREIF's Property Total Return Index — By Jack B. Corgel

CBRE Hotels · 7 Jul

Hotel real estate investors need to measure both the absolute and relative financial performance of their properties. A 10% annual return may appear solid unless a collection of comparable investments earned 15%. Risk-adjusted returns measured against the appropriate index provide a way to assess managers’ abilities to generate excess returns. Measures of investment return come in many flavors.

Controlling Telecommunication Costs
Controlling Telecommunication Costs — By Robert Mandelbaum, Michael Kane

CBRE Hotels · 2 Jul

Although telecommunications costs account for a small percentage of expenses, data during 2015 through 2019 revealed a significant upward trend in telecom related expenditures. To achieve more efficient hotel operations and survive the changing landscape, hotel owners and operators are finding new ways to control telecommunications expenses.

Is C-Pace The “New EB-5″ Financing? Does The Latest Court Decision (Behring V. Wolf) Revitalize EB-5?
Is C-Pace The “New EB-5″ Financing? Does The Latest Court Decision (Behring V. Wolf) Revitalize EB-5? — By Jim Butler

JMBM · 30 Jun

See how JMBM’s Global Hospitality Group® can help you.Click here for the latest articles on EB-5 Financing here for C-PACE Financing.

Is C-PACE the "new EB-5'' financing? Doesn't the latest court decision (Behring v. Wolf) revitalize EB-5?
Is C-PACE the "new EB-5'' financing? Doesn't the latest court decision (Behring v. Wolf) revitalize EB-5?

Hotel Law Blog · 25 Jun

On June 22, 2021, in the case of Behring Regional Center LLC v Chad Wolf, a federal court in the Northern District of California effectively invalida

Impact Of Gallagher Amendment Repeal On Property Taxes For Colorado Hotels/Motels
Impact Of Gallagher Amendment Repeal On Property Taxes For Colorado Hotels/Motels — By Bethany Cronk

HVS · 25 Jun

Local government authorities use property tax revenues to fund services including police and fire protection, hospitals, transportation, and schools for municipalities. For tax purposes, property is considered residential or nonresidential, with nonresidential property constituting commercial businesses, farms, ranches, and oil/gas operations. In 1982, the Gallagher Amendment was implemented in Colorado to hold the proportion of taxable value derived from residential property at approximately 45%.

Working with OTAs: The Indirect Distribution Dilemma
Working with OTAs: The Indirect Distribution Dilemma — By Peter O’Connor

University of South Australia · 23 Jun

Our recent research paper, published in Tourism Review, has generated a lot of interest from industry practitioners. As it can be difficult for non-academics to access such material, we have prepared the summary below to help readers understand the essence of our study. For further details, particularly of the research methodology used and findings, please consult:

Hotel Industry: A Wave Of Bankruptcies Remains Possible In Switzerland
Hotel Industry: A Wave Of Bankruptcies Remains Possible In Switzerland — By Benoît Perrier

EHL · 23 Jun

With a 40% drop in the number of overnight stays in 2020, the Swiss hotel sector is on the verge of suffocation. An exceptional season this summer, however, could limit the damage.

Hotel Labor Costs Are Up Across The Globe. Here’s How to Cope.
Hotel Labor Costs Are Up Across The Globe. Here’s How to Cope. — By Rayna Katz

HotStats Limited · 21 Jun

The U.S. isn’t the only country having issues filling hotel positions. In the wake of pandemic-induced layoffs and furloughs, properties around the globe are having trouble staffing up.

Hotel Lawyer: Commercial PACE (C-PACE) and Retroactive C-PACE free hotel investment capital
Hotel Lawyer: Commercial PACE (C-PACE) and Retroactive C-PACE free hotel investment capital

Hotel Law Blog · 18 Jun

In the past few years, Commercial PACE (C-PACE) financing has transformed from a novel financing technique to a popular and important source of capit