CBRE Hotels · 1 Sep
CBRE's Jamie Lane and Jack Corgel share their take on how the current remote work environment impacts travel demand and what that might mean for both
CBRE Hotels · 17 Aug
The COVID-19 virus has had an extreme negative impact on the U.S. lodging industry. According to CBRE's June 2020 edition of Hotel Horizons®, lodging demand in the U.S. will decline by 37.0 percent in 2020. This will cause a 38.0 percent drop in the national occupancy level, along with a 22.5 percent fall in average daily room rates (ADR). The net result is a projected 51.9 percent fall off in revenue per available room (RevPAR) for the year. Using historical data from the CBRE Trends® in the Hotel Industry database of operating statements, the most likely consequence of a 51.9 percent RevPAR decline is a Gross Operating Profits (GOP) decrease in excess of 80 percent.
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.
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".
CBRE Hotels · 8 May
The practice of asset management for hotels entering the third decade of the 21st Century has evolved into an intricate process of analyzing layers of data and operating results, and then acting based upon the conclusions. The process requires great focus. Asset management is the practice of managing the value of the owner's investment. And now that process becomes more urgent, but also more important than ever before.
CBRE Hotels · 20 Apr
Since January 2020, CBRE Hotels Research has been analyzing the impact of the COVID-19 virus to understand how the societal and economic impacts of COVID-19 will influence the performance of U.S. hotels.
CBRE Hotels · 16 Apr
CBRE Hotels Research was projecting a 1.1% increase in revenue per available room for the year. Even with this low level of revenue growth, there were certain factors that could have sustained—or at least cushioned the blow of minimal declines—the nine-year trend of profit growth for U.S. hotels since 2010.
CBRE Hotels · 17 Mar
The 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI) defines resort fees as, "mandatory fees charged at either a flat amount or a percentage of the room rate." These fees are frequently intended to cover services such as fitness facilities, spas, pools, local phone calls, Internet access, airport transportation, and golf driving ranges, among other recreational facilities.
CBRE Hotels · 17 Dec
Despite the relatively high cost of construction and complexity of operations, developers are still attracted to owning and managing luxury hotels. As of August 2019, STR reports that just 0.7 percent of the hotels (2.3% of rooms) in the United States are chain-affiliated luxury hotels. Concurrently, the STR pipeline report shows that 1.2 percent of the properties (2.9% of rooms) either under construction or planned for development meet this criterion.
CBRE Hotels · 19 Nov
Because federal government employees purchase a significant quantity of hotel rooms, the General Services Administration (GSA) has partnered with Federal Travel Regulation (FTR) compliant accommodations to provide federal travelers with per diem hotel room rates for select high-volume travel destinations in and outside of the Continental United States. These federal guidelines frequently serve to determine the hotel per diem allowances for state and local government travelers as well.
CBRE Hotels · 22 Oct
From the high-tech preferences of Generation Z, to the experiential fondness of Millennials, to the health and wellness realities facing Baby Boomers, hotels continually adjust the amenities and services they offer to satisfy their guests. These adjustments are based on extensive consumer research, much of which has been published in the lodging industry trade publications.
CBRE Hotels · 18 Oct
Rooms revenue per available room, reported as RevPAR, is perhaps the most scrutinized performance indicator in the hotel business. Although the true aim of a hotel's operation is to maximize profit, the wide availability and frequent reporting of RevPAR may make revenue the hotel manager's most immediate target. Revenue-maximizing is simpler to estimate and requires less information than profit-maximizing.
CBRE Hotels · 4 Oct
CBRE's Mark Woodworth sits down with our Global Chief Economist & Head of Americas Research, Richard Barkham. Topics discussed included the state of
CBRE Hotels · 18 Sep
Per the name, the historical role of revenue managers has been to maximize revenue - specifically rooms revenue or RevPAR. RevPAR growth is achieved by increasing occupancy and/or average daily rates (ADR).
CBRE Hotels · 30 Aug
CBRE is pleased to present its semiannual North America Cap Rate Survey for H1 2019, which reveals cap rates and pricing trends for hotel property ty
CBRE Hotels · 20 May
Per the Uniform System of Accounts for the Lodging Industry (USALI), the income received from transient and group guests that fail to occupy a room, or cancel a reservation in the prescribed timeframe, and for which payment was guaranteed on an individual basis, is recorded as No Show Revenue in the Rooms Department. This source of revenue is frequently difficult to identify as a discrete source of income on the standard hotel operating statement format. On the other hand, the fees hotels receive from the cancellation of group meetings are typically presented as a separate line item in Miscellaneous Income.
CBRE Hotels · 19 Apr
According to STR, U.S. hotels achieved all-time high levels of occupancy, ADR, and RevPAR in 2018. While a record number of guests are staying at hotels, and revenues are flowing in, the ability to collect these funds is starting to become more of a challenge.
CBRE Hotels · 22 Mar
According to the December 2018 edition of CBRE's Hotel Horizons®, the annual growth in RevPAR for U.S. hotels is forecast to decelerate from 2.8 percent in 2018 to 0.1 percent in 2021. As the main source of hotel revenue is plateauing, hoteliers are looking up and down their operating statements to find alternative sources of income. For hotels that operate a spa, this department has stood out as a bright spot not only for growth in revenue, but gains in profits as well.
CBRE Hotels · 25 Feb
Technology, online intermediaries, social media, revenue management software, shared-services, and the proliferation of market intelligence reports have reshaped the way hotel Sales and Marketing Departments conduct business. The traditional organizational structure of assigning personnel by demand segments (commercial, group, leisure) has given way to assignment by function (revenue management, social media, channel distribution, customer relationship management). According to one industry executive, most of the "selling" of hotel rooms has moved from the property level to corporate and regional offices.
CBRE Hotels · 21 Dec
While boutique hotels comprised just 3.2 percent of the total U.S. lodging supply in 2017, boutique projects represented 17.8 percent of the rooms in the development pipeline as of June 2018. Boutique hotels are popular with developers for a variety of reasons:• They frequently offer unique, localized experiences that are favored by today's travelers• They give the developer an opportunity to be creative with the facilities and services offered• They achieve premium levels of occupancy and ADRTo gain a better understanding of the performance of this popular segment of the lodging industry, CBRE Hotels' Americas Research (CBRE) partnered with the Boutique and Lifestyle Leaders Association (BLLA) to develop six competitive classification categories. The categories are based on a combination of branding, management, and chain-scale, three factors that influence the market position and performance of boutique and lifestyle hotels. The six competitive classification categories, along with representative brands, are listed below:• Legacy Brands/Upper-Priced: Andaz, Canopy, Indigo, Kimpton, W Hotel• Legacy Brands/Lower-Priced: A/C, aloft Hotel, MOXY, Tru• Soft Brands: Autograph, Best Western Premier, Curio, Hyatt Unbound• Referral Groups/Independent Properties: Historic Hotels, Leading Hotels, Small Luxury Hotels• Boutique-Lifestyle Brands/Luxury: Belmond, Montage, Thompson, Valencia• Boutique-Lifestyle Brands/Upper-Upscale: Affinia, Charlestowne, Joie De VivreUsing these six categories, CBRE publishes quarterly forecast reports that present three-year projections of occupancy, average daily rate (ADR) and RevPAR. Further, once a year the report provides revenue, expense, and profit metrics that allow boutique owners and operators to benchmark the financial performance of their hotels.As the budgets for 2019 performance are being finalized, we present the latest forecast and financial benchmarks from the September 2018 edition of Trends® and Expectations for Boutique and Lifestyle Hotels.