Silicon Valley Hotel Outlook: Darkest Before the Dawn
Reliance on Tech Industry Struck Market Hard in 2020
Tech companies were among the first employers to cancel meetings and halt travel as news of COVID-19 emerged from China.
New York Leads Supply Growth in US
While New York topped the charts as of October 2010 and October 2009, the amount of markets expecting 8% or more growth in new rooms development dropped from 15 to 11.
HENDERSONVILLE, Tennessee—With the numerous rooms as it has had in various stages of development in the past two years, New York remains at the top of the list of United States mar...
US Pipeline Activity by Chain Scale
There was little movement in the top spots during August 2010 versus August 2009.
HENDERSONVILLE, Tennessee—United States hotel development has shifted, because financing has remained difficult to obtain. As of August 2010, the hotel brands with the most rooms i...
Lower-tier Extended Stay Coming Back Fast
Lower-tier extended-stay hotels have bounced back at a faster rate than the upper-tier extended-stay hotels through July 2010.
Hotels Pause Before Brand Changes
Total planned U.S. hotel conversions drop 17% during the past year through July 2010; planned independent conversions decline 27%.
HENDERSONVILLE, Tennessee—As hotel development has continued to stall, expected hotel conversion activity has changed since the same period last year. Total planned conversions dec...
Upscale, Midscale W/o F&B Report Most Rooms Under Construction
Of the STR-defined chain-scale segments, upscale and midscale-without-F&B report the most rooms under construction, not including conversions of hotels from one segment to another.
HENDERSONVILLE, Tennessee—New hotel supply has been growing by leaps and bounds since the basically flat levels in 2004, 2005 and 2006. As of July 2009, year-to-date, the number of...
US Full-service Hotels Operating Expense Trends
The wider the gap in growth rate between total revenue and distributed departmental operating expenses, the harsher the impact on a hotel’s profitability.
HENDERSONVILLE, Tennessee—Smith Travel Research recently released its 2009 Hotel Operating Statistics (HOST) report. While reviewing a 10-year history of full-service hotels’ expen...
Luxury Chain Scale Shows Pricing Disparity
There can be--and are--huge disparities in average daily rate between properties within a brand and brands within a chain scale.
HENDERSONVILLE, Tennessee—STR determines chain scales by grouping branded hotels based on average room rates. There are seven segments in all: luxury, upper upscale, upscale, midsc...
A Closer Look at 1Q Extended-stay Performance
Performance metrics such as occupancy don't reflect the segment's ability to effectively hold demand, because of aggressive supply growth in first quarter 2009.
HENDERSONVILLE, Tennessee—Because its pricing model and amenity package offer higher value for longer-length-of-stay customers, extended-stay hotels were better positioned to weath...
Reducing Rate Can Result in Unintended Consequences
The same pricing logic can affect profitability in different ways at a full- and limited-service hotel in the same market.
HENDERSONVILLE, Tennessee—During these challenging economic times, hoteliers have tried different sales and marketing techniques. Because properties have been managing their rates ...
A Lesson in the Risk of Discounting
Even small rate discounts can affect profitability more than holding rate with a decrease in occupancy.
HENDERSONVILLE, Tennessee—During these challenging economic times, it is easy to justify discounting rates to capture as much share as possible in the marketplace. But what are the...
U.S. Christmas and New Year’s Day Analysis
Though U.S. Christmas day performance metrics are typically soft, historical data shows an immediate increase in occupancy in the days after with sharp occupancy and ADR spikes on New Year’s Eve day.
HENDERSONVILLE, Tennessee—As the year-end holidays approach, an analysis of the historical last two weeks of the year may be in order. How much does the actual day of the week affe...
Room Inventory Still Growing for Now
These economic times call for operators and the industry at large to keep a close eye on other hotel and room activity, such as closures and conversions.
HENDERSONVILLE, Tennessee--Frequently, we focus on new ground-up hotel development without examining other activities that impact total hotel and room inventory. Hotels close becau...