The relationship between the hotel brands and their franchisees was favorable and constructive in 2020. Both recognized that the impact of COVID was largely out of their control, and the best chances for both entities to survive relied on cooperation.
The inflation effect on hotel revenues and expenses was statistically significant. Read on to see if revenues or expenses were more closely tied to inflation.
A Pictorial Update on Our Latest Thoughts and the Facts and Figures Influencing Our Industry
Just as technology has become more ubiquitous throughout our lives, it is now impacting guest service and hotel operations throughout all departments in a hotel. To provide more exposure to the growing costs associated with hotel information and technology systems, the 11th edition of the Uniform System of Account for the Lodging Industry added a discrete undistributed department to capture these expenses.
A concern among commercial real estate investors (especially hotel investors because of the high sensitivity to macroeconomic conditions) is a rate-driven economic slowdown that threatens property income growth. Given the linkages across capital market rates, investors are concerned about the possible upward movement in hotel capitalization rates (cap rates) promoted by increasing 10-year rates. This blog addresses the sensitivity of hotel cap rates to changes in the 10-year.
According to the March 2022 edition of CBRE’s Hotel Horizons national forecast report, the total revenue for a typical U.S. hotel is not expected to return to pre-COVID 2019 nominal dollars until 2023. Accordingly, hotel owners and operators continue to seek ways to control expenses. One potential reduction opportunity is property taxes.
Mr. Britvan joins CBRE from Hodges Ward Elliott, where he served as Group Head of Capital Markets since 2016.
To analyze recent changes in hotel insurance costs, and the factors that influence those changes, we examined the operating statements of 3,156 U.S. hotels that reported insurance expenses for the Trends survey each year from 2015 through 2021.
CBRE now forecasts RevPAR to reach 2019 nominal levels by Q3 2022 under CBRE’s base case scenario, rather than in Q3 2023, as previously forecasted.
A Pictorial Update on Our Latest Thoughts and the Facts and Figures Influencing Our Industry