Thursday, November 18, 2010
Monday, October 25, 2010
STR reports third-quarter 2010 results
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25 October 2010 8:22 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics for third-quarter 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 6.7 percent to 63.9 percent, average daily rate rose 1.6 percent to US$99.07, and revenue per available room increased 8.4 percent to US$63.34.
Year-to-date 2010, occupancy increased 5.2 percent to 58.9 percent, ADR fell 0.7 percent to US$97.89, and RevPAR was up 4.5 percent to US$57.70.
“The U.S. hotel industry continued its recovery in the third quarter,” said Bobby Bowers, senior VP at STR. “Quarterly occupancy growth was the highest STR has ever recorded, and ADR growth was positive for the first time since third-quarter 2008—a seven-quarter stretch. The combined occupancy and ADR gains pushed RevPAR up 8.4 percent—the best quarterly growth the industry has recorded since second-quarter 2006. We anticipate continued but somewhat slower occupancy growth in the final quarter, while ADR should continue its positive momentum.”
Among the Top 25 Markets, New Orleans, Louisiana, achieved the largest occupancy increase, rising 20.5 percent to 61.8 percent, followed by Detroit, Michigan, with an 18.6-percent increase to 61.2 percent. None of the top markets reported occupancy decreases for the third quarter.
New York, New York, was the only top market to report a double-digit ADR increase, rising 11.6 percent to US$230.71. Three other markets reported ADR increases of more than 5 percent: San Francisco/San Mateo, California (+7.2 percent to US$142.82), Boston, Massachusetts (+5.6 percent to US$144.86) and New Orleans (+5.2 percent to US$98.61). Nashville, Tennessee, posted the largest ADR decrease, falling 4.1 percent to US$82.86, followed by Detroit (-2.3 percent to US$74.79) and Houston, Texas (-2.2 percent to US$85.14).
Two markets experienced RevPAR increases of more than 15 percent: New Orleans (+26.8 percent to US$60.97) and Detroit (+15.9 percent to US$45.80). Phoenix, Arizona, was the only market to report a RevPAR decrease, falling 0.8 percent to US$35.07.
About STR
STR 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. For more information, please visit www.str.com.
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
25 October 2010 8:22 AM
HNN Newswire
HENDERSONVILLE, Tennessee—The U.S. hotel industry reported increases in all three key performance metrics for third-quarter 2010 in year-over-year measurements, according to data from STR.
The industry’s occupancy was up 6.7 percent to 63.9 percent, average daily rate rose 1.6 percent to US$99.07, and revenue per available room increased 8.4 percent to US$63.34.
Year-to-date 2010, occupancy increased 5.2 percent to 58.9 percent, ADR fell 0.7 percent to US$97.89, and RevPAR was up 4.5 percent to US$57.70.
“The U.S. hotel industry continued its recovery in the third quarter,” said Bobby Bowers, senior VP at STR. “Quarterly occupancy growth was the highest STR has ever recorded, and ADR growth was positive for the first time since third-quarter 2008—a seven-quarter stretch. The combined occupancy and ADR gains pushed RevPAR up 8.4 percent—the best quarterly growth the industry has recorded since second-quarter 2006. We anticipate continued but somewhat slower occupancy growth in the final quarter, while ADR should continue its positive momentum.”
Among the Top 25 Markets, New Orleans, Louisiana, achieved the largest occupancy increase, rising 20.5 percent to 61.8 percent, followed by Detroit, Michigan, with an 18.6-percent increase to 61.2 percent. None of the top markets reported occupancy decreases for the third quarter.
New York, New York, was the only top market to report a double-digit ADR increase, rising 11.6 percent to US$230.71. Three other markets reported ADR increases of more than 5 percent: San Francisco/San Mateo, California (+7.2 percent to US$142.82), Boston, Massachusetts (+5.6 percent to US$144.86) and New Orleans (+5.2 percent to US$98.61). Nashville, Tennessee, posted the largest ADR decrease, falling 4.1 percent to US$82.86, followed by Detroit (-2.3 percent to US$74.79) and Houston, Texas (-2.2 percent to US$85.14).
Two markets experienced RevPAR increases of more than 15 percent: New Orleans (+26.8 percent to US$60.97) and Detroit (+15.9 percent to US$45.80). Phoenix, Arizona, was the only market to report a RevPAR decrease, falling 0.8 percent to US$35.07.
About STR
STR 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. For more information, please visit www.str.com.
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
Thursday, August 26, 2010
Report: Houston hotels worse off in 2010
Thursday, August 26, 2010, 3:13pm CDT
Houston Business Journal
Houston hotels are expected to make less this year despite promising occupancy increases, according to Colliers PKF Hospitality Research.
The hotel market forecaster expects hotels in the Houston region to experience a 2.6 percent average loss in revenue per available room (RevPAR), a key indicator used to measure hospitality performance. The shift counters national expectations that most major markets will improve RevPAR about 4.6 percent this year.
“On a national level we are seeing strong growth in occupancy as business and leisure travelers return to the road,” PKF President Mark Woodworth said in a statement. “However, our analysis confirms that the sharp rise in demand during the first half of 2010 is partially attributable to the low level of room rates.”
Overall, Houston hotels are expected to decrease rates by 3.1 percent this year, while occupancy should rise by about 0.5 percent.
“In Houston, we are seeing a pattern similar to the national trend. Unfortunately, the projected percent decline in (average daily rate) is significant enough to offset the expected gain in occupancy," said Randy McCaslin in Colliers PKF Houston office.
Read more: Report: Houston hotels worse off in 2010 - Houston Business Journal
Houston Business Journal
Houston hotels are expected to make less this year despite promising occupancy increases, according to Colliers PKF Hospitality Research.
The hotel market forecaster expects hotels in the Houston region to experience a 2.6 percent average loss in revenue per available room (RevPAR), a key indicator used to measure hospitality performance. The shift counters national expectations that most major markets will improve RevPAR about 4.6 percent this year.
“On a national level we are seeing strong growth in occupancy as business and leisure travelers return to the road,” PKF President Mark Woodworth said in a statement. “However, our analysis confirms that the sharp rise in demand during the first half of 2010 is partially attributable to the low level of room rates.”
Overall, Houston hotels are expected to decrease rates by 3.1 percent this year, while occupancy should rise by about 0.5 percent.
“In Houston, we are seeing a pattern similar to the national trend. Unfortunately, the projected percent decline in (average daily rate) is significant enough to offset the expected gain in occupancy," said Randy McCaslin in Colliers PKF Houston office.
Read more: Report: Houston hotels worse off in 2010 - Houston Business Journal
Friday, June 4, 2010
PwC's Lodging Industry Forecast shows recovery in sight | HotelWorld Network
PwC's Lodging Industry Forecast shows recovery in sight HotelWorld Network
PwC's Lodging Industry Forecast shows recovery in sight
May 28, 2010
NEW YORK-- PricewaterhouseCoopers’ updated US lodging forecast expects continued recovery of demand, with the ability to increase room rates returning in 2011, after two consecutive years of decline. The initial months of 2010 suggest that a sustainable recovery of lodging demand has begun. As businesses and consumers gain further confidence in the strength of economic recovery, discretionary spending is expected to continue to increase, contributing to progressive increases in lodging demand through the remainder of 2010, though the pace of recovery is expected to moderate. With lodging supply growth expected to lag demand growth for the first time since 2006, PricewaterhouseCoopers expects hotel occupancy levels in 2010 to increase. Average daily rates (ADR) are not expected to increase until early next year, resulting in a moderate occupancy-driven increase in revenue per available room (RevPAR) in 2010, with a more substantial, rate-driven recovery in RevPAR expected in 2011.
PricewaterhouseCoopers' quarterly lodging forecast is based on an updated macroeconomic forecast from Macroeconomic Advisers, LLC that expects real gross domestic product (GDP) growth to be above its long term average, but below the typical growth expected after a deep recession. Macroeconomic Advisers expects GDP to increase 3.5 percent in 2010, followed by a 3.9 percent increase in 2011.
The current slowdown in hotel construction activity is a key element in the foundation for recovery in operating performance of existing hotels. The pace of new construction starts fell from 134,000 rooms in 2008, to 47,000 in 2009, and most recently to a pace equivalent to approximately 29,000 rooms (annualized) through the first quarter of 2010. This sets the context for progressively slower supply growth of 1.9 percent and 0.4 percent in 2010 and 2011, respectively. This constrained supply growth, combined with gradual recovery in lodging demand, is expected to result in increases in occupancy levels to 56.6 percent and 58.2 percent in 2010 and 2011, respectively. The industry has experienced a more pronounced rebound in transient demand. However, until group bookings pick up, realizing significant increases in room rates in many hotels and markets will be challenging. As a result, PricewaterhouseCoopers forecasts ADR levels to decrease a further 1.7 percent in 2010, before growth resumes with a 3.5 percent increase in 2011.
Sources: Smith Travel Research and PricewaterhouseCoopers
"Though this remains a challenging year, the hotel sector's recent increases in lodging demand are brisk, and with improving economic conditions, some operators are ready to re-focus on increasing room rates," says Scott D. Berman, principal and US Industry Leader, Hospitality & Leisure, for PricewaterhouseCoopers.
PwC's Lodging Industry Forecast shows recovery in sight
May 28, 2010
NEW YORK-- PricewaterhouseCoopers’ updated US lodging forecast expects continued recovery of demand, with the ability to increase room rates returning in 2011, after two consecutive years of decline. The initial months of 2010 suggest that a sustainable recovery of lodging demand has begun. As businesses and consumers gain further confidence in the strength of economic recovery, discretionary spending is expected to continue to increase, contributing to progressive increases in lodging demand through the remainder of 2010, though the pace of recovery is expected to moderate. With lodging supply growth expected to lag demand growth for the first time since 2006, PricewaterhouseCoopers expects hotel occupancy levels in 2010 to increase. Average daily rates (ADR) are not expected to increase until early next year, resulting in a moderate occupancy-driven increase in revenue per available room (RevPAR) in 2010, with a more substantial, rate-driven recovery in RevPAR expected in 2011.
PricewaterhouseCoopers' quarterly lodging forecast is based on an updated macroeconomic forecast from Macroeconomic Advisers, LLC that expects real gross domestic product (GDP) growth to be above its long term average, but below the typical growth expected after a deep recession. Macroeconomic Advisers expects GDP to increase 3.5 percent in 2010, followed by a 3.9 percent increase in 2011.
The current slowdown in hotel construction activity is a key element in the foundation for recovery in operating performance of existing hotels. The pace of new construction starts fell from 134,000 rooms in 2008, to 47,000 in 2009, and most recently to a pace equivalent to approximately 29,000 rooms (annualized) through the first quarter of 2010. This sets the context for progressively slower supply growth of 1.9 percent and 0.4 percent in 2010 and 2011, respectively. This constrained supply growth, combined with gradual recovery in lodging demand, is expected to result in increases in occupancy levels to 56.6 percent and 58.2 percent in 2010 and 2011, respectively. The industry has experienced a more pronounced rebound in transient demand. However, until group bookings pick up, realizing significant increases in room rates in many hotels and markets will be challenging. As a result, PricewaterhouseCoopers forecasts ADR levels to decrease a further 1.7 percent in 2010, before growth resumes with a 3.5 percent increase in 2011.
Sources: Smith Travel Research and PricewaterhouseCoopers
"Though this remains a challenging year, the hotel sector's recent increases in lodging demand are brisk, and with improving economic conditions, some operators are ready to re-focus on increasing room rates," says Scott D. Berman, principal and US Industry Leader, Hospitality & Leisure, for PricewaterhouseCoopers.
Moody Gets $80M for Hotel Portfolio
Moody Gets $80M for Hotel Portfolio
Houston-based Moody National Cos. has banked $80 million from Inland American Lodging Group Inc., turning over a 598-key, Marriott-branded portfolio in three states.
The hotels will continue to be managed by Concord Hospitality Enterprises Co. of Raleigh, N.C. The buyer extended Concord's management contracts through 2020.
The portfolio consists of the 182-room Courtyard Pittsburgh Downtown and 94-key Courtyard Pittsburgh West Homestead in Pennsylvania; 103-room Courtyard West Palm Beach Airport in Florida; and 219-key Marriott West Des Moines in Iowa.
"This is a strong portfolio of Marriott-branded hotels that sustained moderate rate and occupancy declines compared to the national average, throughout the economic downturn," said Marcel Verbaas, president and CEO of Orlando, Fla.-based Inland American Lodging Advisors Inc. "We believe they are well-positioned for growth as the economy recovers and business and leisure travel return to more normalized levels. Targeted capital expenditures will further enhance these hotels during Inland American's first few years of ownership."
With the acquisition, Inland American Real Estate Trust, headquartered in Oak Brook, Ill., has 54 Marriott-branded hotels with 15,584 rooms in the U.S.
http://houston.citybizlist.com/yourcitybiznews/detail.aspx?id=80350
Houston-based Moody National Cos. has banked $80 million from Inland American Lodging Group Inc., turning over a 598-key, Marriott-branded portfolio in three states.
The hotels will continue to be managed by Concord Hospitality Enterprises Co. of Raleigh, N.C. The buyer extended Concord's management contracts through 2020.
The portfolio consists of the 182-room Courtyard Pittsburgh Downtown and 94-key Courtyard Pittsburgh West Homestead in Pennsylvania; 103-room Courtyard West Palm Beach Airport in Florida; and 219-key Marriott West Des Moines in Iowa.
"This is a strong portfolio of Marriott-branded hotels that sustained moderate rate and occupancy declines compared to the national average, throughout the economic downturn," said Marcel Verbaas, president and CEO of Orlando, Fla.-based Inland American Lodging Advisors Inc. "We believe they are well-positioned for growth as the economy recovers and business and leisure travel return to more normalized levels. Targeted capital expenditures will further enhance these hotels during Inland American's first few years of ownership."
With the acquisition, Inland American Real Estate Trust, headquartered in Oak Brook, Ill., has 54 Marriott-branded hotels with 15,584 rooms in the U.S.
http://houston.citybizlist.com/yourcitybiznews/detail.aspx?id=80350
Monday, May 3, 2010
PKF Hospitality Reports Steep Profit Decline For Hotels In 2009
Posted 05/03/2010 - 7:16:11 AM
ATLANTA—The average U.S. hotel experienced a 35.4% decline in profits in 2009, according to survey results in the recently released "Trends in the Hotel Industry" report issued by PKF Hospitality Research.
The 2009 decline represents the greatest annual fall-off in the bottom line since PKF-HR began tracking the industry in the 1930's. Some 95% of the properties surveyed experienced a decline in rooms revenue and total hotel revenue from 2008 to 2009. On average, the properties in the Trends report experienced a 7.5% decline in occupancy and a 12.1% decline in average daily rate.
Resort, convention and full-service hotels endured the greatest declines in profits, dropping 37.8%, 37.5% and 37.4%, respectively.
ATLANTA—The average U.S. hotel experienced a 35.4% decline in profits in 2009, according to survey results in the recently released "Trends in the Hotel Industry" report issued by PKF Hospitality Research.
The 2009 decline represents the greatest annual fall-off in the bottom line since PKF-HR began tracking the industry in the 1930's. Some 95% of the properties surveyed experienced a decline in rooms revenue and total hotel revenue from 2008 to 2009. On average, the properties in the Trends report experienced a 7.5% decline in occupancy and a 12.1% decline in average daily rate.
Resort, convention and full-service hotels endured the greatest declines in profits, dropping 37.8%, 37.5% and 37.4%, respectively.
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