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.
The Baird/STR Hotel Stock Index rose 1.5% in September at 4,944. Year to date through the first nine months of 2018, the stock index was up 1.1%.
Lodging is a cyclical industry meaning that it passes over time through four distinct phases: peak, contraction, trough and expansion. Most industry participants believe that 2007 was the previous peak of the current business cycle following six years of expansion from the 2001 industry recession.
The Baird/STR Hotel Stock Index remained flat in August at 4,872. Year to date through the first eight months of 2018, the stock index was down 0.3%.
As the pace of revenue growth continues to decelerate for U.S. hotels, the capability of hotel operators to control costs will determine the ability of a property to increase profits from year to year.