Year to date, the Baird/STR Hotel Stock Index is up 14.1%.
This thing in the title of this piece, I want to say was a fad that died already. Benchmarking and KBIs were all the rage a decade ago and now, today, you dont hear much at all about their usefulness or how to create them. There is a good reason they have fallen out of sight in the hospitality industry – read on to find out why.
EP Indicator Has Risen to a New Reading of 1.7 Points
In 2010, Attrition and Cancellation Fee income equaled 1.0 percent of Total Operating Revenue. This metric declined to 0.8 percent in 2011 but has since risen to 1.1 percent of Total Operating Revenue in 2016 and 2017.
Year to date through the first four months of 2019, the Hotel Stock Index is up 20.1%.
When I work with hotel clients around their financial leadership its often centered on getting the team to do their monthly financial forecast. A greater interest in doing it produces better and more consistent results. When doing financial leadership workshops and individual coaching, I inevitably discover the same thing time and time again. Its the disconnect between the executive team/director of finance part of the operation and the department line managers. In this piece I am going to explain why this disconnect exists, how to detect it and what you can do to fix it.
CFO to CEO: 'What happens if we invest in developing people and they leave?' CEO: 'What happens if we dont and they stay?'
Speakers at the conference noted a few troubled spots in lending, but they seem to be isolated to the oil patch or situations that are specialized and limited. Overall it seems that some experts project a continuation of modestly good times through 2020 or 2021, while a few doomsayers claim we are ready to fall off a cliff any minute.
According to STR, U.S. hotels achieved all-time high levels of occupancy, ADR, and RevPAR in 2018. While a record number of guests are staying at hotels, and revenues are flowing in, the ability to collect these funds is starting to become more of a challenge.
The Baird/STR Hotel Stock Index dipped 0.9% in March to 4,642. Year to date through the first three months of 2019, the index was up 14.1%.