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