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Log In / Register | Nov 28, 2014

Budgeting Is Getting Easy

Historical budget accuracy for U.S. hotelsThrow away the Ouija and dart boards. Apparently predicting the performance of U.S. hotels has become very easy for U.S. hotel managers. For the third consecutive year, management's projections of revenues, expenses and profits contained in their budgets have been extremely accurate.

Hotels in Profitable Part of Business Cycle

Despite the slowdown in the pace of rooms revenue (RevPAR) growth in 2013, U.S. hotels were able to sustain strong gains in net operating income (NOI) during the year.

Hotel Marketing: Investing In People And Technology

The introduction of technology has influenced the duties of on-site hotel sales personnel over the years. The reach of the internet, social media, and sophisticated revenue management programs have provided marketing professionals with an array of new tools.

Shift in Hotel Retail Impacts Revenues and Profits

Hotels provide retail operations primarily for guest convenience and satisfaction, and are, in general, only a small part of total hotel revenue.

Hotels Pay Their Debt

Annual Change in Interest PaymentIn 2009 the average hotel participating in PKF Hospitality Research's (PKF-HR) Trends in the Hotel Industry survey suffered a staggering 35.4 percent decline in net operating income (NOI).

Conference Centers: The Recovery Gathers Speed

The U.S. lodging industry is well into its fourth year of recovery from the great recession of 2009. One of the pleasant surprises of the current recovery has been the very strong return of lodging demand.

Prosperity Equals Accuracy

Since 2001, PKF Hospitality Research, LLC (PKF-HR) has assessed the accuracy of hotel budgets. Over the past 12 years, one trend has become very predictable. During times of industry prosperity, hotel budgets are extremely accurate.

Hotel Top-Line Extends To Bottom-Line

Source: PKF Hospitality Research, LLC

Hotel developers are attracted to extended-stay (ES) hotels because of the relative simplicity of their operations and high profit margins.

Go with the Flow

Average Flow-Multiples for Hotel Properties
Figure one

The U.S. lodging industry recovery made great progress in 2011 with over 70 percent of the hotels in the nation showing increases in both revenue and profits during the year.