Lodging
Strong Performance Drives Transactions
Separate transactions announced this week by Hersha Hospitality and LaSalle Hotel Properties are good examples of the discrepancies between transaction prices, in terms of price per key, and implied values, according to Joe Greff of JP Morgan. HT bought a 228-room Hampton Inn in Washington DC for $320,000 a key. The price implies an 8.3... »
Low Supply Growth Key to Recovery
A slowdown in supply growth will help spur lodging’s recovery in the United States as demand returns thanks to a temporary boost from business travelers, according to PricewaterhouseCoopers. Long-term growth however will depend on a sustained recovery of the broader economy. By the end of the year, demand is expected to increase by almost 7 percent,... »
EMEA Pipeling Narrows
For eight straight quarters, the hotel construction pipeline for Europe the Middle East and Africa has been declining and the second quarter was no exception with 1,307 projects consisting of 268,478 rooms in the pipeline. As long as construction financing remains difficult to... »
Fall Travel Shows Promise
The economy is not an issue for 78 percent of travelers who said that it was not affecting their fall travel plans, according to TripAdvisor.com. Eighty-six percent of travelers are planning leisure trips this fall, and 42 percent plan on making it their biggest trip of the year. Fifty-two percent want to take urban getaways, compared... »
MAR Picks up Cosmo
Cosmopolitan has filled a hole that some had speculated about. It has linked up with an international reservation system. Cosmopolitan in Las Vegas has signed on with Marriott. ... »
Finally, Hotel Profits to Grow
Hotel profits are finally ready to grow for the first time since 2007, according to Colliers PFK Hospitality Research. PKF is projecting 2.3 percent growth in net operating income, following a 37.8 cumulative decline from 2007 through 2009. Unit-level operating income should grow by double digits each year from 2011 to 2013. So far, profit growth has... »
Irish Hotels Under Closure Threat
About 150 hotels in Ireland may be forced to close after the announced closure of Bank of Scotland Ireland, the North Ireland News reported. The bank provides 20 percent... »
Innkeepers Restructuring Approved
Bankruptcy court approved the restructuring plan for Innkeepers USA Trust that will have Lehman Brothers Holdings lend the group $17.5 million, Bloomberg reported. Appaloosa Management, a Lehman creditor, and a group of Innkeepers preferred stock holders had objected to the plan. Lehman is also in bankruptcy, but plans on the financing helping it recoup a secured... »
Meeting, Convention Business Improving
Meeting and convention business is expectd to generate $90.7 billion this year, a 7 percent jump from last year when the spending fell 15 percent, according to the US Travel Association, USA Today reported. Conditions are getting better with attendance and budgets seeing improvement, according to Meetings Professionals International. The group found 61 percent of... »
PKF: Tough 2010 Follows 2009 Decline
PKF is forecasting a tough 2010, with year-end occupancy at a 0.3 percent increase, a 1.1 percent decline in revPAR and 1.4 percent drop in ADR. Last year, the average US hotel experienced a 35.4 percent decline in profits in 2009, PKF Hospitality research reported. Discounting room rates was the main factor in declining revenue, and... »