Theres more evidence supporting a deep, short recession followed by a long, tough recovery. While lower-income households are spending, higher-income households are saving, leaving markets perplexed.
Positive data points, from rising retail sales to housing starts, point to good news for the economy, which is facing a potential deep, but short recession.
A hotels overall performance is the sum of its parts. Though the bulk of revenue is derived from the renting of rooms, there are other arrows in a hotels quiver that can generate cash flow, such as restaurants, bars, meetings and events, spas, golf, parking, retail and more. Therein lies the rub: COVID-19, for now, has all but vanquished these ancillary revenue streams, a blow especially to luxury and full-service hotels that typically offer these services.
I was trained with the concept of the separation of duties as a foundation so in some respects I take it that everyone else has the same perspective. Recently I worked with a client that showed me just how far things can go awry when you put your trust in someone and you fail to have the proper separation and oversight.
Inflation data from both consumers and businesses is providing more evidence that the U.S. economy has likely moved beyond the worst of the downturn. But if COVID-19 cases continue to swing upward, recovery could be muted.
In the business world protecting your assets is a critical strategy. Without it, you are open to things happening that can cost you a fortune. I was trained with the concept of separation of duties as a foundation so in some respects I take it that everyone else has the same perspective.
The Baird/STR Hotel Stock Index rose 1.7% in May to a level of 3,232. Year to date through the first five months of 2020, the stock index was down 38.7%.
Inside of the hotel company I worked for there has always been a constant movement to increase efficiency, especially inside the financial function. Not surprising, right? Thats what all businesses have done and continue to do, to evolve and ultimately outsource or eliminate seemingly needless, value lacking work. I was heavily involved in such a project that took me all the way to England.
The Baird/STR Hotel Stock Index rose 15.6% in April to a level of 3,177. Year to date through the first four months of 2020, the stock index was down 39.7%.
With job losses exceeding the gains from the last expansion the U.S. economy is in unprecedented territory. The $3.3 trillion fiscal stimulus still may not be enough to halt double-digit contractions.