What Happens When Government Per Diems Change?
What Happens When Government Per Diems Change? — By Bram Gallagher, Aman Patel

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.

How Changes in Hotel Revenues Suggest Changes in Guest Preferences
How Changes in Hotel Revenues Suggest Changes in Guest Preferences — By Robert Mandelbaum

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.

Hotel Statements: A Model of Profit Maximizing Premia and Discounts
Hotel Statements: A Model of Profit Maximizing Premia and Discounts — By Bram Gallagher

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.

Special Edition CBRE Lodging Insights; Watch the Trade Winds
Special Edition CBRE Lodging Insights; Watch the Trade Winds

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

Managing RevPAR For Profits
Managing RevPAR For Profits — By Robert Mandelbaum, Bram Gallagher

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).

U.S. Hotel Cap Rate Survey - First Half 2019
U.S. Hotel Cap Rate Survey - First Half 2019

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

Attrition and Cancellation Revenue
Attrition and Cancellation Revenue — By Robert Mandelbaum

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.

Revenue Is Rising, But Collecting Is More Challenging
Revenue Is Rising, But Collecting Is More Challenging

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 hot

Hotel Spas: Not Just For Resorts Anymore
Hotel Spas: Not Just For Resorts Anymore — By Jenna Finkelstein, Mark VanStekelenburg

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.

Unit-Level Hotel Marketing: P&L Reveals Changes In Department Functions
Unit-Level Hotel Marketing: P&L Reveals Changes In Department Functions — By Robert Mandelbaum

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.

Boutique Hotels: Premium Performance Impacts Flow-through
Boutique Hotels: Premium Performance Impacts Flow-through — By Robert Mandelbaum

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.

U.S. Lodging Performance Fell Short Of Budget In 2017
U.S. Lodging Performance Fell Short Of Budget In 2017

CBRE Hotels · 22 Oct

In 2017, the actual achieved levels of occupancy, average daily rate (ADR), total revenue and profits for U.S. hotels were less than their respective

CBRE Hotels Outlook for 2019? Focus on Expenses
CBRE Hotels Outlook for 2019? Focus on Expenses

CBRE Hotels · 2 Oct

CBRE Hotels' Americas Research Director of Information Services, Robert Mandelbaum, reviews our annualTrends® In The Hotel Industry report, summarizi

Budgeting for 2019? Follow the Supply and the Economy
Budgeting for 2019? Follow the Supply and the Economy

CBRE Hotels · 22 Aug

New hotel rooms coming onto the U.S. market shouldn't be a concern for established hotel operators because demand will continue to exceed moderating

Cost Controls Perpetuate U.S. Hotel Profit Growth In 2017
Cost Controls Perpetuate U.S. Hotel Profit Growth In 2017

CBRE Hotels · 17 Jul

U.S. hoteliers enjoyed an eighth consecutive year of increasing profits in 2017 despite another slowdown in the rate of revenue growth. According to

The Outlook For U.S. Hotel Profits In 2018
The Outlook For U.S. Hotel Profits In 2018

CBRE Hotels · 24 Apr

Since 2014, U.S. lodging industry owners and operators have seen a steady decline in the pace of revenue growth. In 2014, rooms revenue per available

Measuring the Investment in Training
Measuring the Investment in Training — By Robert Mandelbaum

CBRE Hotels · 18 Mar

In 2016, the average property in our Trends® in the Hotel Industry survey sample spent 31.3 percent of its total revenue, or 42.8 percent of its total operating expenses on labor costs. This includes the salaries, wages, benefits, service charges, and bonuses paid to employees, as well as payments made for contracted labor. By far, labor related costs are the largest operating expense for hotels regardless of property type.

Other Operated Departments Become Even More Minor
Other Operated Departments Become Even More Minor — By Robert Mandelbaum

CBRE Hotels · 14 Feb

In lodging industry parlance, other operated departments are frequently referred to as minor operated departments. Based on recent trends in other operated department revenues and profits, these sources of income have become less consequential to both the top and bottom lines of U.S. hotels.

How the Composition of RevPAR Growth Impacts Changes in Profits
How the Composition of RevPAR Growth Impacts Changes in Profits — By Robert Mandelbaum

CBRE Hotels · 18 Dec

To project changes in profits we obviously need to look at the expected relative changes in revenues and expenses. Profit growth can only be realized when the dollar value of the change in revenue exceeds the dollar value of the change in expenses.

Shifts In Revenue and Expenses Improve Hotel Food And Beverage Profits
Shifts In Revenue and Expenses Improve Hotel Food And Beverage Profits — By Robert Mandelbaum

CBRE Hotels · 20 Nov

Consumer dining trends tend to be more volatile than lodging trends. Recognizing this, hotel managers have made some significant changes in the way they offer food and beverage service to their guests. The traditional three-meal, all-purpose restaurants and room service are disappearing. Taking their place are self-service kiosks and grab-and-go concepts that provide quick-service for in-house guests. These changes help explain recent changes in hotel food and beverage department revenues, expenses, and profits.