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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.

Hotel Owners, Select Your Profits

2011 percent of total hotel revenue

The definition of "select-service" within the lodging industry may vary from person to person, but there is no doubt that properties in this segment are the most popular among developers.

Hotels Await Impact of Storm on Profits

Image of Super Storm Sandy by NOAA as it hits Eastern Seaboard
NOAA image of Superstorm Sandy, after hitting Eastern Seaboard

Superstorm Sandy looks likely to push down quarterly profits for national hotel chains and the travel industry. Sandy, which accounts for at least 56 storm deaths in the Eastern Seaboard as of Thursday morning, crippled much of the coastal areas of New Jersey and New York.

July Breaks U.S. Hotel Occupancy Record

Smith Travel Research (STR) reported that the industry sold more rooms in July 2012 than in any other single month since STR began tracking industry performance in 1987.

Staffing For Prosperity

In 2010 it was the ability of U.S. hotel managers to control labor costs that was the driving force behind the subdued 3.4 percent increase in total operating expenses posted by the properties in our Trends in the Hotel Industry survey sample.