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 · 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 · 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.
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.
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.
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.
CBRE Hotels · 16 Oct
From 2010 through 2015, U.S. hotels enjoyed above long-run average revenue and profit growth. Over the six-year period, total operating revenue increased at a compound annual growth rate (CAGR) of 5.8 percent, while gross operating profits grew at a CAGR of 8.9 percent. Therefore, when U.S. hoteliers sat down in the fall of 2015 to prepare their budgets for 2016, it is no surprise that they believed the strong upward momentum in revenue and profit growth would continue.
CBRE Hotels · 21 Sep
In the current market environment of modest growth in revenue, hotel owners and operators are paying extra attention to their operating expenses. Per the June 2017 edition of Hotel Horizons®, RevPAR growth in the U.S. is forecast to remain under 3.0 percent from 2018 through 2021. Therefore, it will be management's ability to control expenses that will enable profits to grow.
CBRE Hotels · 15 Aug
Per the Bureau of Labor Statistics, the average hourly compensation for a hospitality industry employee increased by 3.6 percent in 2016. In the hotel industry, labor costs average roughly 50 percent of total operating expenses. Therefore, with STR reporting an annual RevPAR growth rate of 3.2 percent for the year, it is understandable that U.S. hotel owners and operators were concerned about their ability to increase profits.
CBRE Hotels · 13 Jul
The U.S. lodging industry recovery from the depths of the great recession was characterized by strong growth in rooms revenue (RevPAR), concurrent with strict cost controls. This combination resulted in double-digit growth rates for profits from 2010 through 2014. Starting in 2015, market conditions changed. The pace of RevPAR growth slowed down, while expenses increased at their highest level of real change in the past 20 years. With RevPAR growth forecast to be somewhat muted for the next few years, the attention of owners and operators has how shifted on controlling expenses.