This article looks at hotel sales and capitalization rate trends, the impact of slowing RevPAR growth on hotel values, and the outlook for 2019.
I tell my Introductory Hospitality Financial Leadership Workshop participants that the concept behind the matching principle is 'the most important concept today.' Why? When it comes to producing financial information, its the cornerstone of understanding why we do almost everything the way we do it in the business world.
US growth is expected to moderate from an estimated 2.8% in 2018 to around 2.3% in 2019 – Labour markets in advanced economies expected to tighten, pushing up wages – India and France could overtake the UK economy in terms of size in 2019
After a decrease in three of the final four months of 2018, the Baird/STR Hotel Stock Index finished the year down 16.8%.
Interviews are tricky, for both the candidate and the interviewer. A GMs job interview is a challenge for the incumbent because they need to be ready for just about anything. This is especially true as it relates to the financial picture of the business as seen through the interviewers eyes.
Year to date through the first 11 months of 2018, the stock index fell 9.0%.
After a steep drop in October, the index is down 10.5% through the first 10 months of 2018.
In 2017, the actual achieved levels of occupancy, average daily rate (ADR), total revenue and profits for U.S. hotels were less than their respective budgeted amounts. After a five-year period (2011 through 2015) of extremely accurate budget projections, this marks the second consecutive year that owners and operators failed to meet their operating goals.
Hurricanes Michael and Florence are both gone, but the extent of their destruction is now coming into clearer focus.
HVS continually tracks the rates of return on the assets that we consult on. In our most recent review, we found that equity yield rates, on average, have been declining, due in part to the expectation of slowing EBITDA Less Replacement Reserve growth. The sample size of available data is also a contributing factor.