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Thursday, May 2, 2013
Monday, August 20, 2012
Economy has companies still scrimping on travel, survey says – USATODAY.com
Economy has companies still scrimping on travel, survey says – USATODAY.com:
The recession may be over, but business travelers still feel the effects of a sluggish economy, a survey of them released today shows.
By Gary Stoller, USA TODAY
More than a third of 407 business travelers surveyed this month say fewer employees in their companies are allowed to travel to meetings than a year ago, according to the online survey sponsored by Cambria Suites.
About a quarter of survey respondents say more of their business trips have cost-saving daily spending limits than a year ago, and 23% report they are staying less frequently at full-service or luxury hotels.
The survey, conducted by the research arm of the Global Business Travel Association, the trade group representing corporate travel departments, includes only business travelers with full-time jobs and who took at least four business trips of at least 50 miles each in the last 12 months.
Of the respondents, 65% were men and 57% earned less than $100,000 before taxes last year.
More than four of every 10 travelers surveyed report their business travel expense reports are "more closely scrutinized."
Two of every five say they've been encouraged to spend less per day on business trips, and there is greater scrutiny of "outcomes emanating from business trips."
Frequent business traveler Dave Simonson, a computer consultant in Antioch, Tenn., says the sluggish economy has affected his travel spending.
"I always try to find the least expensive way to travel to keep expenses down," he says.
Nancy Walters, president of a marketing and public relations agency, spent more than 100 nights away from home on business this year and notices the economy's effects on travel expenses.
"Gone are the days of luxury business hotel stays and the focus on building reward perks through frequent hotel stays," says Walters of Rancho Bernardo, Calif.
Despite companies' efforts to reduce travel expenses, the travelers surveyed emphasized the importance of business travel.
Nearly eight of 10 agree or strongly agree that business travel helps their companies grow, and face-to-face meetings are necessary for "doing business successfully."
Michael McCormick, the business travel association's executive director, says companies may look to cut travel spending in a challenging economy but shouldn't.
Cutting business travel can hurt "a company's bottom line" and do nothing to help the economy, he says.
Among other survey findings:
•64% say technology has helped their companies save money on business travel, and 83% say they use technology to plan or book business trips. Technology has helped 66% of those surveyed achieve greater productivity, and 73% say technology is equally important in their business and personal lives in enhancing productivity.
•More than half say they've downloaded mobile apps to help them be more productive on business trips.
A third say social media has enhanced their business travel experience by keeping them in touch with personal and professional networks.
•More than half say that a hotel's amenities have a greater effect on their ability to work productively than do those connected with airline flights or rental cars. Free hotel Wi-Fi is an amenity that about 90% say is important.
The recession may be over, but business travelers still feel the effects of a sluggish economy, a survey of them released today shows.
By Gary Stoller, USA TODAY
More than a third of 407 business travelers surveyed this month say fewer employees in their companies are allowed to travel to meetings than a year ago, according to the online survey sponsored by Cambria Suites.
About a quarter of survey respondents say more of their business trips have cost-saving daily spending limits than a year ago, and 23% report they are staying less frequently at full-service or luxury hotels.
The survey, conducted by the research arm of the Global Business Travel Association, the trade group representing corporate travel departments, includes only business travelers with full-time jobs and who took at least four business trips of at least 50 miles each in the last 12 months.
Of the respondents, 65% were men and 57% earned less than $100,000 before taxes last year.
More than four of every 10 travelers surveyed report their business travel expense reports are "more closely scrutinized."
Two of every five say they've been encouraged to spend less per day on business trips, and there is greater scrutiny of "outcomes emanating from business trips."
Frequent business traveler Dave Simonson, a computer consultant in Antioch, Tenn., says the sluggish economy has affected his travel spending.
"I always try to find the least expensive way to travel to keep expenses down," he says.
Nancy Walters, president of a marketing and public relations agency, spent more than 100 nights away from home on business this year and notices the economy's effects on travel expenses.
"Gone are the days of luxury business hotel stays and the focus on building reward perks through frequent hotel stays," says Walters of Rancho Bernardo, Calif.
Despite companies' efforts to reduce travel expenses, the travelers surveyed emphasized the importance of business travel.
Nearly eight of 10 agree or strongly agree that business travel helps their companies grow, and face-to-face meetings are necessary for "doing business successfully."
Michael McCormick, the business travel association's executive director, says companies may look to cut travel spending in a challenging economy but shouldn't.
Cutting business travel can hurt "a company's bottom line" and do nothing to help the economy, he says.
Among other survey findings:
•64% say technology has helped their companies save money on business travel, and 83% say they use technology to plan or book business trips. Technology has helped 66% of those surveyed achieve greater productivity, and 73% say technology is equally important in their business and personal lives in enhancing productivity.
•More than half say they've downloaded mobile apps to help them be more productive on business trips.
A third say social media has enhanced their business travel experience by keeping them in touch with personal and professional networks.
•More than half say that a hotel's amenities have a greater effect on their ability to work productively than do those connected with airline flights or rental cars. Free hotel Wi-Fi is an amenity that about 90% say is important.
Monday, June 18, 2012
STR: HOST Study shows improved results in 2011
STR: HOST Study shows improved results in 2011
HENDERSONVILLE, Tennessee—The U.S. hotel industry’s total revenue grew 7.5 percent in 2011 to US$137.5 billion, the largest percent change in the previous 10 years, according to the Hotel Operating Statistics (HOST) Study for 2011, compiled by STR.
According to the HOST Study, Gross Operating Profit (GOP) rested at 36.1 percent in 2011 compared to 35.3 percent in 2010. The industry’s pre-tax income grew 20.0 percent in year-over-year comparisons to US$21.6 billion.
“There is no question that the past few years have been extremely difficult for the hotel industry, and while a number of properties have gone under or are still in deep financial straits, the industry overall continued to bounce back during 2011,” said Randy Smith chairman and co-founder of STR. “This is a remarkable achievement given the difficulties of operating in today's uncertain economic environment.”
Other highlights of the HOST Study:
•Full-service hotels reported an average occupancy of 68.5 percent and an average daily rate of US$153.81 in 2011.
•On average, full-service hotels generated US$240.08 in total revenue per occupied room night, up from US$236.13 in 2010. Full-service, chain-affiliated hotels checked in at US$230.83 per occupied roomnight while independent properties reported US$327.39 per occupied roomnight.
•GOP for full-service properties was 31.5 percent, compared with 29.9 percent in 2010. GOP was approximately US$18,633 per available room and US$75.54 per roomnight.
•Overall in 2011, limited-service hotels recorded an occupancy of 70.0 percent (up from 68.4 percent in 2010) and an ADR of US$89.85 (compared with US$86.82 in 2010).
•Limited-service hotels reported a GOP of 48.8 percent, which was an increase from 48.0 percent in 2010. These hotels generated US$45.28 in GOP per occupied roomnight and US$11,517 per available room.
•Franchise fees in chain-affiliated, limited-service hotels accounted for 3.2 percent of the undistributed operating expenses, which equates to US$2.91 per occupied roomnight.
http://www.hotelnewsnow.com/Articles.aspx/8305/STR-HOST-Study-shows-improved-results-in-2011
HENDERSONVILLE, Tennessee—The U.S. hotel industry’s total revenue grew 7.5 percent in 2011 to US$137.5 billion, the largest percent change in the previous 10 years, according to the Hotel Operating Statistics (HOST) Study for 2011, compiled by STR.
According to the HOST Study, Gross Operating Profit (GOP) rested at 36.1 percent in 2011 compared to 35.3 percent in 2010. The industry’s pre-tax income grew 20.0 percent in year-over-year comparisons to US$21.6 billion.
“There is no question that the past few years have been extremely difficult for the hotel industry, and while a number of properties have gone under or are still in deep financial straits, the industry overall continued to bounce back during 2011,” said Randy Smith chairman and co-founder of STR. “This is a remarkable achievement given the difficulties of operating in today's uncertain economic environment.”
Other highlights of the HOST Study:
•Full-service hotels reported an average occupancy of 68.5 percent and an average daily rate of US$153.81 in 2011.
•On average, full-service hotels generated US$240.08 in total revenue per occupied room night, up from US$236.13 in 2010. Full-service, chain-affiliated hotels checked in at US$230.83 per occupied roomnight while independent properties reported US$327.39 per occupied roomnight.
•GOP for full-service properties was 31.5 percent, compared with 29.9 percent in 2010. GOP was approximately US$18,633 per available room and US$75.54 per roomnight.
•Overall in 2011, limited-service hotels recorded an occupancy of 70.0 percent (up from 68.4 percent in 2010) and an ADR of US$89.85 (compared with US$86.82 in 2010).
•Limited-service hotels reported a GOP of 48.8 percent, which was an increase from 48.0 percent in 2010. These hotels generated US$45.28 in GOP per occupied roomnight and US$11,517 per available room.
•Franchise fees in chain-affiliated, limited-service hotels accounted for 3.2 percent of the undistributed operating expenses, which equates to US$2.91 per occupied roomnight.
http://www.hotelnewsnow.com/Articles.aspx/8305/STR-HOST-Study-shows-improved-results-in-2011
Friday, May 25, 2012
STR reports year-end '10, Dec. '10 data
http://www.hotelnewsnow.com/articles.aspx/4794/STR-reports-year-end-10-Dec-10-data
21 January 2011
HNN Newswire
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Story Highlights•Overall in 2010, the U.S. hotel industry's occupancy increased 5.7%, ADR decreased 0.1%, and RevPAR was up 5.5%.
•During December 2010 the industry reported increases in all three key performance metrics.
•Detroit ended the year with the largest increase in occupancy.
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HENDERSONVILLE, Tennessee—The U.S. hotel industry ended 2010 with mostly positive performance results, according to data compiled by STR.
The industry’s occupancy increased 5.7 percent to 57.6 percent, average daily rate ended the year virtually flat with a 0.1-percent decrease to US$98.08, and revenue per available room was up 5.5 percent to US$56.47.
“2010 will be known as the year of demand recovery,” said Mark Lomanno, STR’s CEO. “For most industry markets and segments, the number of people purchasing hotel rooms approached and in some cases exceeded pre-recession levels. However, for myriad reasons including but not limited to historically low occupancies, late booking patterns and the sluggish return of group business, room rate acceleration did not follow the influx of guests. We look to see this change dramatically in 2011, especially during the second half of the year.”
Among the Top 25 Markets, Detroit, Michigan, experienced the largest occupancy increase, rising 14.2 percent to 54.3 percent, followed by New Orleans, Louisiana (+12.7 percent to 64.7 percent), and Boston, Massachusetts (+10.4 percent to 68.7 percent). Houston, Texas, ended the year virtually flat with a 0.3-percent occupancy decrease to 55.1 percent, reporting the only decrease among the top markets.
New York, New York, achieved the only ADR increase of more than 5 percent, rising 7.5 percent to US$232.29. Three markets posted ADR decreases of more than 5 percent: Tampa-St. Petersburg, Florida (-7.2 percent to US$91.43); Detroit (-5.2 percent to US$74.49); and Phoenix, Arizona (-5.1 percent to US$100.94).
Five top markets experienced double-digit RevPAR increases for the year: New Orleans (+14.7 percent to US$74.92); Boston (+13.0 percent to US$97.19); New York (+12.9 percent to US$187.93); Miami-Hialeah, Florida (+10.9 percent to US$101.19); and Denver, Colorado (+10.5 percent to US$59.25). Houston (-4.2 percent to US$48.78) and Tampa-St. Petersburg (-1.5 percent to US$50.56) experienced the only RevPAR decreases for the year.
December 2010
During December 2010, the industry’s occupancy increased 5.4 percent to end the month at 46.0 percent. ADR was up 1.9 percent to finish the month at US$96.22. RevPAR for the month rose 7.4 percent to finish at US$44.23.
“Results for the month of December saw the continuation of strong demand growth in conjunction with very modest room rate growth,” Lomanno said. “Room rate increases continue to be quite slow as it appears most hoteliers have been unable to accelerate this key component necessary to realize a full recovery.”
Detroit rose 14.5 percent in occupancy to 46.8 percent, reporting the largest increase among the top markets, followed by Orlando, Florida (+11.9 percent to 65.3 percent), and Oahu Island, Hawaii (+11.4 percent to 79.8 percent. Two top markets posted occupancy decreases: New Orleans (-4.6 percent to 50.7 percent) and New York (-2.8 percent to 77.7 percent).
San Francisco/San Mateo, California (+11.0 percent to US$130.52), and Orlando, Florida (+10.2 percent to US$96.44), were the only top markets to report double-digit ADR increases for the month. New Orleans dropped 15.9 percent in ADR to US$101.80, reporting the largest decrease in that metric.
Three markets experienced RevPAR increases of more than 15 percent: Orlando (+23.3 percent to US$63.00); San Francisco/San Mateo (+20.2 percent to US$84.07); and Oahu Island (+18.9 percent to US$133.96). Two markets posted RevPAR decreases for the month: New Orleans (-19.8 percent to US$51.59) and Tampa-St. Petersburg (-4.9 percent to US$37.59).
About STR
STR (www.str.com) provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. STR also founded the Hotel Data Conference (www.Hoteldataconference.com), which will be held 3-4 August 2011 in Nashville, Tennessee.
Media contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann Urie
Communications Coordinator
rurie@str.com
+1 (615) 824-8664 ext. 3305
21 January 2011
HNN Newswire
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Story Highlights•Overall in 2010, the U.S. hotel industry's occupancy increased 5.7%, ADR decreased 0.1%, and RevPAR was up 5.5%.
•During December 2010 the industry reported increases in all three key performance metrics.
•Detroit ended the year with the largest increase in occupancy.
--------------------------------------------------------------------------------
HENDERSONVILLE, Tennessee—The U.S. hotel industry ended 2010 with mostly positive performance results, according to data compiled by STR.
The industry’s occupancy increased 5.7 percent to 57.6 percent, average daily rate ended the year virtually flat with a 0.1-percent decrease to US$98.08, and revenue per available room was up 5.5 percent to US$56.47.
“2010 will be known as the year of demand recovery,” said Mark Lomanno, STR’s CEO. “For most industry markets and segments, the number of people purchasing hotel rooms approached and in some cases exceeded pre-recession levels. However, for myriad reasons including but not limited to historically low occupancies, late booking patterns and the sluggish return of group business, room rate acceleration did not follow the influx of guests. We look to see this change dramatically in 2011, especially during the second half of the year.”
Among the Top 25 Markets, Detroit, Michigan, experienced the largest occupancy increase, rising 14.2 percent to 54.3 percent, followed by New Orleans, Louisiana (+12.7 percent to 64.7 percent), and Boston, Massachusetts (+10.4 percent to 68.7 percent). Houston, Texas, ended the year virtually flat with a 0.3-percent occupancy decrease to 55.1 percent, reporting the only decrease among the top markets.
New York, New York, achieved the only ADR increase of more than 5 percent, rising 7.5 percent to US$232.29. Three markets posted ADR decreases of more than 5 percent: Tampa-St. Petersburg, Florida (-7.2 percent to US$91.43); Detroit (-5.2 percent to US$74.49); and Phoenix, Arizona (-5.1 percent to US$100.94).
Five top markets experienced double-digit RevPAR increases for the year: New Orleans (+14.7 percent to US$74.92); Boston (+13.0 percent to US$97.19); New York (+12.9 percent to US$187.93); Miami-Hialeah, Florida (+10.9 percent to US$101.19); and Denver, Colorado (+10.5 percent to US$59.25). Houston (-4.2 percent to US$48.78) and Tampa-St. Petersburg (-1.5 percent to US$50.56) experienced the only RevPAR decreases for the year.
December 2010
During December 2010, the industry’s occupancy increased 5.4 percent to end the month at 46.0 percent. ADR was up 1.9 percent to finish the month at US$96.22. RevPAR for the month rose 7.4 percent to finish at US$44.23.
“Results for the month of December saw the continuation of strong demand growth in conjunction with very modest room rate growth,” Lomanno said. “Room rate increases continue to be quite slow as it appears most hoteliers have been unable to accelerate this key component necessary to realize a full recovery.”
Detroit rose 14.5 percent in occupancy to 46.8 percent, reporting the largest increase among the top markets, followed by Orlando, Florida (+11.9 percent to 65.3 percent), and Oahu Island, Hawaii (+11.4 percent to 79.8 percent. Two top markets posted occupancy decreases: New Orleans (-4.6 percent to 50.7 percent) and New York (-2.8 percent to 77.7 percent).
San Francisco/San Mateo, California (+11.0 percent to US$130.52), and Orlando, Florida (+10.2 percent to US$96.44), were the only top markets to report double-digit ADR increases for the month. New Orleans dropped 15.9 percent in ADR to US$101.80, reporting the largest decrease in that metric.
Three markets experienced RevPAR increases of more than 15 percent: Orlando (+23.3 percent to US$63.00); San Francisco/San Mateo (+20.2 percent to US$84.07); and Oahu Island (+18.9 percent to US$133.96). Two markets posted RevPAR decreases for the month: New Orleans (-19.8 percent to US$51.59) and Tampa-St. Petersburg (-4.9 percent to US$37.59).
About STR
STR (www.str.com) provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. STR also founded the Hotel Data Conference (www.Hoteldataconference.com), which will be held 3-4 August 2011 in Nashville, Tennessee.
Media contacts:
Jeff Higley
VP, Digital Media & Communications
jeff@str.com
+1 (615) 824-8664 ext. 3318
Rachael Spann Urie
Communications Coordinator
rurie@str.com
+1 (615) 824-8664 ext. 3305
STR: US hotels report strong results in 2011
STR: US hotels report strong results in 2011
23 January 2012
HNN Newswire
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HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics in 2011, according to data from STR.
Overall, the U.S. hotel industry’s occupancy rose 4.4 percent to 60.1 percent, its average daily rate was up 3.7 percent to US$101.64 and its revenue per available room increased 8.2 percent to US$61.06.
2011 was the first time since 2008 that the industry ended the year with occupancy of more than 60 percent and an ADR of more than US$100.
The industry reported a 0.6-percent increase in supply in 2011 and a 5.0-percent demand increase for the year. Demand has increased 5.0 percent or more only three times since 1987.
“2011 was a strong year for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “Room-supply growth continued to drift downward as room demand reached record levels during the year. Though occupancy and ADR were still below 2007 and 2008 levels, it was still encouraging to see the industry experience a solid rebound during a period of considerable economic difficulties.”
“In 2012 the hotel industry will face tough year-over-year comparisons, though we are still optimistic,” Smith continued. “With modest gains in occupancy and stronger increases in room rates, we expect RevPAR to increase about 4.3 percent in 2012.”
Among the Top 25 Markets, Detroit, Michigan, ended the year with the largest occupancy increase, up 10.2 percent to 59.8 percent, followed by Tampa-St. Petersburg, Florida, with a 9.7-percent increase to 60.5 percent. New Orleans, Louisiana, ended the year virtually flat with a 0.4-percent decrease to 64.2 percent.
Two markets ended the year with double-digit ADR increases: San Francisco/San Mateo, California (+13.9 percent to US$155.14), and Oahu Island, Hawaii (+10.0 percent to US$165.05). Atlanta, Georgia (-0.4 percent to US$82.58), and Norfolk-Virginia Beach, Virginia (-0.3 percent to US$84.24) were the only top markets to report ADR decreases in 2011.
San Francisco/San Mateo achieved the largest RevPAR increase, rising 19.7 percent to US$122.54, followed by Nashville (+14.8 percent to US$58.01) and Miami-Hialeah (+14.1 percent to US$115.65). None of the top markets reported RevPAR decreases for the year.
------------------------------------------------------------------------------
Media Contacts:
Jeff Higley
VP, Digital Media & Communication
jeff@str.com
+1 (615) 824 8664 ext. 3318
Rachael Spann Urie
Director, Public Relations
rurie@str.com
+1 (615) 824 8664 ext. 3305
23 January 2012
HNN Newswire
--------------------------------------------------------------------------------
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics in 2011, according to data from STR.
Overall, the U.S. hotel industry’s occupancy rose 4.4 percent to 60.1 percent, its average daily rate was up 3.7 percent to US$101.64 and its revenue per available room increased 8.2 percent to US$61.06.
2011 was the first time since 2008 that the industry ended the year with occupancy of more than 60 percent and an ADR of more than US$100.
The industry reported a 0.6-percent increase in supply in 2011 and a 5.0-percent demand increase for the year. Demand has increased 5.0 percent or more only three times since 1987.
“2011 was a strong year for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “Room-supply growth continued to drift downward as room demand reached record levels during the year. Though occupancy and ADR were still below 2007 and 2008 levels, it was still encouraging to see the industry experience a solid rebound during a period of considerable economic difficulties.”
“In 2012 the hotel industry will face tough year-over-year comparisons, though we are still optimistic,” Smith continued. “With modest gains in occupancy and stronger increases in room rates, we expect RevPAR to increase about 4.3 percent in 2012.”
Among the Top 25 Markets, Detroit, Michigan, ended the year with the largest occupancy increase, up 10.2 percent to 59.8 percent, followed by Tampa-St. Petersburg, Florida, with a 9.7-percent increase to 60.5 percent. New Orleans, Louisiana, ended the year virtually flat with a 0.4-percent decrease to 64.2 percent.
Two markets ended the year with double-digit ADR increases: San Francisco/San Mateo, California (+13.9 percent to US$155.14), and Oahu Island, Hawaii (+10.0 percent to US$165.05). Atlanta, Georgia (-0.4 percent to US$82.58), and Norfolk-Virginia Beach, Virginia (-0.3 percent to US$84.24) were the only top markets to report ADR decreases in 2011.
San Francisco/San Mateo achieved the largest RevPAR increase, rising 19.7 percent to US$122.54, followed by Nashville (+14.8 percent to US$58.01) and Miami-Hialeah (+14.1 percent to US$115.65). None of the top markets reported RevPAR decreases for the year.
------------------------------------------------------------------------------
Media Contacts:
Jeff Higley
VP, Digital Media & Communication
jeff@str.com
+1 (615) 824 8664 ext. 3318
Rachael Spann Urie
Director, Public Relations
rurie@str.com
+1 (615) 824 8664 ext. 3305
Monday, July 18, 2011
Hotel room rates: Feather soft - Philly.com
Slow rebound of hotel rates in Philadelphia to continue
The slow economic recovery and strong competition from other major U.S. cities are prompting hotels in Philadelphia to charge rates below 2007 levels. "Hotels in the Philadelphia region have not recovered from the recession and are not projected to recover until 2013," said James Gratton, president of the 85-member Greater Philadelphia Hotel Association.
Hotel room rates: Feather soft - Philly.com: "Hotel room rates: Feather soft"
July 17, 2011By Suzette Parmley, Inquirer Staff Writer
Debra Cook of Denton, Texas, felt she scored a coup after booking her stay at the four-star Loews Philadelphia Hotel for $100 a night Sunday through Thursday last week, on Priceline.com. "You can't beat that rate," said the 11th-grade English teacher, who was here for a five-day conference at the National Constitution Center.
But Cook's room savings are costing city hoteliers. While downtown hotels are benefiting from new business brought by the recently expanded Pennsylvania Convention Center, they are charging rates far below 2007 levels because of the sputtering economy and intense competition from other major U.S. cities, primarily New York, Washington and Boston.
"Hotels in the Philadelphia region have not recovered from the recession and are not projected to recover until 2013," said James Gratton, president of the 85-member Greater Philadelphia Hotel Association and general manager of the Courtyard by Marriott Philadelphia Downtown.
While hotel rates are slowly come back, he said, they aren't projected to return to 2007 and 2008 levels for at least another two years.
New business created by the Convention Center expansion still leaves rooms to fill.
"If the average convention lasts four days, and we host 20 citywide conventions a year (those requiring 2,000 or more rooms on peak nights), there are still 285 nights a year . . . the hotels will have to fill," Gratton said. "Currently, we are projecting 16 conventions in [both] 2012 and 2013."
Last year's revenue per available room, or RevPar - the metric used by hotels to measure profitability - was $104, the same as in 2004 and well below 2007's $122.46.
As of May 30, Center City's year-to-date average daily rate (ADR) was $158.21, compared to Boston's ADR of $179.71, and Washington's $215.59.
Several city hoteliers interviewed contend that if the lower ADR persists, it could cut into profits and hinder the ability of newer hotels to finance their mortgages.
"When you think about operating costs such as commodities and labor, they've all gone up while ADR has gone down," said Nick Gregory, director of operations for Kimpton Hotels Philadelphia and general manager of the 230-room Palomar at 117 S. 17th St. "With occupancy flat, you lose the ability to make a profit."
The result, added Gregory, is "ownership groups come down hard on management to lower amenities to keep costs low. If labor is the number-one expense. . . you have to cut labor."
That, in turn, can diminish the customer's experience, said Bill Fitzgerald, general manager of the 432-room DoubleTree Hotel Philadelphia. "We are having to do more with less."
There's another issue, a serious one for Philadelphia and the expanded Convention Center: Evan Evans, general manager of Le Meridien, which sits across from City Hall, said as profits are squeezed, capital improvement projects such as expansions or renovations are put on hold.
The lower ADR threatens several hotel projects that were intended to support the Convention Center's expansion, which debuted March 4. Four years ago, there were more than 20 such projects in the pipeline. The 268-room Monaco by Kimpton in Old City and the 136-unit Homewood Suites in University City are the only two hotels set to open next year.
"Lenders use ADR and RevPar to determine the health of our industry and make credit decisions," Evans said. "The city needs to add an additional 1,600 guest rooms to support the expansion of the Convention Center, but investors are waiting for ADR to return."
Philadelphia's chief rivals - New York, Boston and Washington - are commanding higher rates even though they have more rooms to sell.
With over 66,500 rooms in Manhattan, and as the nation's top tourism draw, New York holds top ranking as a given. Much of Washington's hotel clientele is government-related, which explains its No. 2 spot in ADR.
But Boston's higher room rate than Philadelphia's is puzzling, since both cities have similar historical attractions and walkability. Boston also has far more rooms to sell, 18,189, against 11,160 here.
C. Patrick Scholes, senior gaming and lodging analyst at FBR Capital Markets, said Boston was more of a financial capital and home to several mutual funds and hedge funds. "This corporate travel segment tends to pay more for rooms," he said. "Whereas in a more leisure-tourism market like Philly, the rates that you can command for that group are less." Having a smaller footprint also works to Boston's advantage. "Downtown Boston is a little more congested and harder to build new properties," said Scholes. "It's harder to put up new supply in there and part of why it can command a higher rate." Boston also has a strong summer convention market and the venue to support it, said Larry Meehan, vice president of tourism sales for the Greater Boston Convention and Tourism Bureau.
The much bigger Boston Convention and Exhibition Center opened in 2004, and has a seven-year head start on Philadelphia's expanded center.
There is a silver lining for Philadelphia. The limited supply of new hotels will ultimately boost rates as the larger Convention Center draws customer traffic, say analysts and hoteliers.
For now, Angie and David Hein, of Cromwell, Conn., are taking advantage. The couple stayed one night in a $349-a-night suite with a complimentary upgrade at the Palomar last week after taking in the city's sights. "Price, location, amenities. We got all three," said Angie Hein, 63, as she checked out last Thursday.
The slow economic recovery and strong competition from other major U.S. cities are prompting hotels in Philadelphia to charge rates below 2007 levels. "Hotels in the Philadelphia region have not recovered from the recession and are not projected to recover until 2013," said James Gratton, president of the 85-member Greater Philadelphia Hotel Association.
Hotel room rates: Feather soft - Philly.com: "Hotel room rates: Feather soft"
July 17, 2011By Suzette Parmley, Inquirer Staff Writer
Debra Cook of Denton, Texas, felt she scored a coup after booking her stay at the four-star Loews Philadelphia Hotel for $100 a night Sunday through Thursday last week, on Priceline.com. "You can't beat that rate," said the 11th-grade English teacher, who was here for a five-day conference at the National Constitution Center.
But Cook's room savings are costing city hoteliers. While downtown hotels are benefiting from new business brought by the recently expanded Pennsylvania Convention Center, they are charging rates far below 2007 levels because of the sputtering economy and intense competition from other major U.S. cities, primarily New York, Washington and Boston.
"Hotels in the Philadelphia region have not recovered from the recession and are not projected to recover until 2013," said James Gratton, president of the 85-member Greater Philadelphia Hotel Association and general manager of the Courtyard by Marriott Philadelphia Downtown.
While hotel rates are slowly come back, he said, they aren't projected to return to 2007 and 2008 levels for at least another two years.
New business created by the Convention Center expansion still leaves rooms to fill.
"If the average convention lasts four days, and we host 20 citywide conventions a year (those requiring 2,000 or more rooms on peak nights), there are still 285 nights a year . . . the hotels will have to fill," Gratton said. "Currently, we are projecting 16 conventions in [both] 2012 and 2013."
Last year's revenue per available room, or RevPar - the metric used by hotels to measure profitability - was $104, the same as in 2004 and well below 2007's $122.46.
As of May 30, Center City's year-to-date average daily rate (ADR) was $158.21, compared to Boston's ADR of $179.71, and Washington's $215.59.
Several city hoteliers interviewed contend that if the lower ADR persists, it could cut into profits and hinder the ability of newer hotels to finance their mortgages.
"When you think about operating costs such as commodities and labor, they've all gone up while ADR has gone down," said Nick Gregory, director of operations for Kimpton Hotels Philadelphia and general manager of the 230-room Palomar at 117 S. 17th St. "With occupancy flat, you lose the ability to make a profit."
The result, added Gregory, is "ownership groups come down hard on management to lower amenities to keep costs low. If labor is the number-one expense. . . you have to cut labor."
That, in turn, can diminish the customer's experience, said Bill Fitzgerald, general manager of the 432-room DoubleTree Hotel Philadelphia. "We are having to do more with less."
There's another issue, a serious one for Philadelphia and the expanded Convention Center: Evan Evans, general manager of Le Meridien, which sits across from City Hall, said as profits are squeezed, capital improvement projects such as expansions or renovations are put on hold.
The lower ADR threatens several hotel projects that were intended to support the Convention Center's expansion, which debuted March 4. Four years ago, there were more than 20 such projects in the pipeline. The 268-room Monaco by Kimpton in Old City and the 136-unit Homewood Suites in University City are the only two hotels set to open next year.
"Lenders use ADR and RevPar to determine the health of our industry and make credit decisions," Evans said. "The city needs to add an additional 1,600 guest rooms to support the expansion of the Convention Center, but investors are waiting for ADR to return."
Philadelphia's chief rivals - New York, Boston and Washington - are commanding higher rates even though they have more rooms to sell.
With over 66,500 rooms in Manhattan, and as the nation's top tourism draw, New York holds top ranking as a given. Much of Washington's hotel clientele is government-related, which explains its No. 2 spot in ADR.
But Boston's higher room rate than Philadelphia's is puzzling, since both cities have similar historical attractions and walkability. Boston also has far more rooms to sell, 18,189, against 11,160 here.
C. Patrick Scholes, senior gaming and lodging analyst at FBR Capital Markets, said Boston was more of a financial capital and home to several mutual funds and hedge funds. "This corporate travel segment tends to pay more for rooms," he said. "Whereas in a more leisure-tourism market like Philly, the rates that you can command for that group are less." Having a smaller footprint also works to Boston's advantage. "Downtown Boston is a little more congested and harder to build new properties," said Scholes. "It's harder to put up new supply in there and part of why it can command a higher rate." Boston also has a strong summer convention market and the venue to support it, said Larry Meehan, vice president of tourism sales for the Greater Boston Convention and Tourism Bureau.
The much bigger Boston Convention and Exhibition Center opened in 2004, and has a seven-year head start on Philadelphia's expanded center.
There is a silver lining for Philadelphia. The limited supply of new hotels will ultimately boost rates as the larger Convention Center draws customer traffic, say analysts and hoteliers.
For now, Angie and David Hein, of Cromwell, Conn., are taking advantage. The couple stayed one night in a $349-a-night suite with a complimentary upgrade at the Palomar last week after taking in the city's sights. "Price, location, amenities. We got all three," said Angie Hein, 63, as she checked out last Thursday.
Friday, June 3, 2011
Guidance indicates hotels’ optimism for 2011
Thursday, 19 May 2011
Posted by Shawn A. Turner at 12:00 AM
Judging by the guidance given for the remainder of 2011, it looks like the hotel industry’s publicly traded companies are optimistic about the direction of the sector’s recovery.
While the economic environment is still shaky, the consensus among hotels seems to be revenue per available room growth of between approximately 4% and 9.5% for the rest of the year, according to first-quarter earnings statements.
“I think the stock market right now is underwriting a pretty strong recovery,” said Enrique Torres, an analyst with Green Street Advisors.
At Wednesday’s close, the Baird/STR Hotel Stock Index was up 15.4% year over year, as indicated by the Hotel Investment Barometer’s data dashboard. For those who aren’t aware, the dashboard handily compiles in one spot a multitude of financial measures and provides a year-over-year look at these metrics. Check it out by clicking here. (Paid Hotel Investment Barometer subscription required to view.) Torres said many companies are targeting RevPAR between 6% and 8%. “Fundamentals (in 2011) should improve meaningfully,” he said.
Now, let’s go right to the sources and take a quick look at what some of the sector’s public companies have to say as far as 2011 guidance is concerned.
Accor: “Despite the uncertainty created by recent geopolitical events in Japan, Africa and the Middle East, and by the macro-economic environment, the group is confident that the hotel cycle will continue to recover in 2011, mainly driven by demand,” the company said in a first-quarter earnings release 20 April.
China Lodging Group: “We are confident that the outlook of the domestic travel market will continue to grow fast,” CEO Matthew Zhang said in a 10 May news release.
Choice Hotels International: RevPAR growth of approximately 4% is expected during 2011.
InterContinental Hotels Group: "We remain confident about the outlook for the rest of the year,” chief executive Andrew Cosslett said in a news release issued 10 May. “Demand for our brands continues to strengthen with both guests and hotel owners. This is driving our performance and reinforcing our industry leading pipeline. We are well positioned to take advantage of the gathering rate momentum we now see around the world.”
Marriott International: “For the full year 2011, the company expects a strong pricing environment,” Marriott said in its first-quarter earnings release on 20 April.
Starwood Hotels & Resorts Worldwide: RevPAR increases at same-store operated hotels worldwide of 7% to 9% in constant dollars; RevPAR increases at branded same-store owned hotels worldwide of 8% to10% in constant dollars.
Strategic Hotels & Resorts: Company raised the lower end of its guidance for North American same store RevPAR and total RevPAR and expects the RevPAR growth to be between 7.5% and 9%.
Sunstone Hotel Investors: Pro forma comparable 33-hotel portfolio RevPAR to increase 6% to 8%.
Original posting:
http://www.hotelnewsnow.com/blog.aspx/5583/108/Guidance-indicates-hotels-optimism-for-2011
Posted by Shawn A. Turner at 12:00 AM
Judging by the guidance given for the remainder of 2011, it looks like the hotel industry’s publicly traded companies are optimistic about the direction of the sector’s recovery.
While the economic environment is still shaky, the consensus among hotels seems to be revenue per available room growth of between approximately 4% and 9.5% for the rest of the year, according to first-quarter earnings statements.
“I think the stock market right now is underwriting a pretty strong recovery,” said Enrique Torres, an analyst with Green Street Advisors.
At Wednesday’s close, the Baird/STR Hotel Stock Index was up 15.4% year over year, as indicated by the Hotel Investment Barometer’s data dashboard. For those who aren’t aware, the dashboard handily compiles in one spot a multitude of financial measures and provides a year-over-year look at these metrics. Check it out by clicking here. (Paid Hotel Investment Barometer subscription required to view.) Torres said many companies are targeting RevPAR between 6% and 8%. “Fundamentals (in 2011) should improve meaningfully,” he said.
Now, let’s go right to the sources and take a quick look at what some of the sector’s public companies have to say as far as 2011 guidance is concerned.
Accor: “Despite the uncertainty created by recent geopolitical events in Japan, Africa and the Middle East, and by the macro-economic environment, the group is confident that the hotel cycle will continue to recover in 2011, mainly driven by demand,” the company said in a first-quarter earnings release 20 April.
China Lodging Group: “We are confident that the outlook of the domestic travel market will continue to grow fast,” CEO Matthew Zhang said in a 10 May news release.
Choice Hotels International: RevPAR growth of approximately 4% is expected during 2011.
InterContinental Hotels Group: "We remain confident about the outlook for the rest of the year,” chief executive Andrew Cosslett said in a news release issued 10 May. “Demand for our brands continues to strengthen with both guests and hotel owners. This is driving our performance and reinforcing our industry leading pipeline. We are well positioned to take advantage of the gathering rate momentum we now see around the world.”
Marriott International: “For the full year 2011, the company expects a strong pricing environment,” Marriott said in its first-quarter earnings release on 20 April.
Starwood Hotels & Resorts Worldwide: RevPAR increases at same-store operated hotels worldwide of 7% to 9% in constant dollars; RevPAR increases at branded same-store owned hotels worldwide of 8% to10% in constant dollars.
Strategic Hotels & Resorts: Company raised the lower end of its guidance for North American same store RevPAR and total RevPAR and expects the RevPAR growth to be between 7.5% and 9%.
Sunstone Hotel Investors: Pro forma comparable 33-hotel portfolio RevPAR to increase 6% to 8%.
Original posting:
http://www.hotelnewsnow.com/blog.aspx/5583/108/Guidance-indicates-hotels-optimism-for-2011
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