Hotel Asset Value Enhancement

03/12/2024

We're thrilled to announce our CEO Michelle Russo will be attending The International Hospitality Investment Forum in Berlin from April 14-20.

This year's "Making the Markets" theme at IHIF is all about empowering the industry and investors. We're excited to hear insights from global investors and hotel CEOs, and to learn from every corner of our vibrant industry. If you are attending, we would love to connect!

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02/26/2024

Our first BrandscapeTM of 2024 has been released! This one-of-a-kind resource offers a comprehensive comparison of brands for those evaluating hotel franchise and branding options.

We always provide insights into brand parents, STR category (quality/star level), design and consumer appeal, and this year, we’ve also made updates that include:

-Added Hilton and Marriott's latest midscale extended-stay brands, LivSmart Studios and StudioRes

-Introduced an ultra-luxury vs. entry-level luxury differentiator for brands not associated with major brand families

-Conducted a thorough refresh of mid-sized/larger brands in the "Other Brands" category

Our asset management and advisory teams are dedicated to supporting owners and lenders navigating the challenges of the post-pandemic recovery cycle.

02/12/2024

Our Q4 2023 Hospitality Dashboard with industry insights and trends is now available!

A few to highlight:

-Projected 2024 RevPAR growth of 2.7% to 4.2% is below 4.9% in 2023.Because the deceleration is ADR related, GOP margin pressures will continue in 2024.

-While US travel abroad has fully recovered, domestic arrivals remain below 2019 levels. Gateway cities, especially on the West Coast, are looking for alternative solutions to offset reduced international arrivals, impacted by delayed recovery in Asian inbound travel.

-Despite slowing new supply construction (many projects have ceased or are in limbo), shadow inventory continues to expand.

Access the full dashboard and explore these trends in detail by signing up here: https://www.hotelave.com/hospitality-dashboard/

Access HotelAVE's Quarterly Hospitality Dashboard to receive the latest insights into the hotel management industry. Our hotel asset management experts deliver the latest trends in the industry including topline outlook, investor surveys, financing trends, and US hotel KPIs.

02/07/2024

Missed out on ALIS 2024? hotelAVE has you covered with key conference takeaways!

-Pressure to do deals: Buyers are getting active after a hiatus of 2-3 years. Asset-specific business plans are driving more activity as sellers face pressure due to changes in financing markets

-Buyers need a distress story to transact: Preferred equity and purchasing from forced sellers are common themes

-Finite debt availability: Brokers advise going to market early for fresh allocations amidst potential market uncertainty as the election approaches

-Shifting returns expectations: Higher debt costs challenge levered returns. Excess returns may come from non-traditional opportunities and high-return capital expenditure projects.18% IRR is the new 20% IRR!

-Fundamental concerns: Can corporate and group growth compensate for leisure decline? Will inflation deceleration slow ADR growth?

In 2024, maintaining margins amidst slowing top-line growth will be paramount. Focusing on asset management strategies for sales, revenue, cost control, and labor efficiency is key. Connect with hotelAVE's leadership team to enhance your property's performance!

01/31/2024

We're excited to share the published article "Condo Hotel Developments and Hotels With Residential Rental Programs Are Fraught With Complexity" on Hotel Business Review, written by our very own Loren Balsam, CFA.

Loren provides the challenges and complexities of traditional hotel development and the increasing trend of developers turning to condo hotels. As success requires careful negotiation of terms and cost allocations, as well as an understanding of the legal and physical nuances involved, he provides recommendations for a well-structured strategy that can deliver both short-term returns and a lasting residual income stream.

Check out the article for more insights!

Exploring the challenges and complexities surrounding condo hotel and hotel with residential rental program development

01/17/2024

With a 15% increase from Q2 2022, group travel is setting the stage for for a return to 2019 levels! Here are a few key insights from our 2024 Outlook:

-New hire trainings, culture building, strategy development, and product launches are fueling the heightened demand for group travel.

-Associations are taking the lead and extending the booking window out to over a year in advance.

-Planners have found it more challenging to secure appropriate spaces.

-SMERF groups, especially sports, are getting priced out on the weekends.

-Companies with long-term office leases are transforming unused spaces into meeting venues. A mandatory and creative approach to adapt to evolving business needs.

-The question of “revenge travel” lingers: will the surge in demand driven by new business activities normalize post-2024?

Connect with us for deeper insights into 2024 hotel industry data and trends.

01/09/2024

We're excited to share that hotelAVE's CEO Michelle Russo will be attending The BHN Group's ALIS from Jan 22-24. Eagerly anticipating insights from top-tier industry delegates and the game-changing trends shaking up the hotel investment scene. Let us know if you will be there!

ALIS 2020 - For nearly 20 years, ALIS has delivered an unrivaled combination of compelling content, top-tier delegates, and extraordinary networking opportunities.

12/19/2023

hotelAVE currently oversees more than $250M of third-party operated or licensed restaurants and bars across 50+ different concepts. We leverage our extensive expertise and data driven approach to provide clients with a range of operational effectiveness services to maximize F&B profitability while improving the guest experience to maximize overall valuation of assets.

SVP David Israel recently attended International Luxury Hotel Association INSPIRE 2023, moderating a panel on “Realizing Your F&B’s Full Potential.” Consider these panel takeaways when developing or reimagining F&B concepts:

1. To DIY or not to DIY?: While creating F&B concepts in-house offers full ownership, it presents its own set of challenges (ex. marketing/reach, talent acquisitions, reporting/operating expertise). Many Owners are looking to a culinary or hospitality expert to lease or manage their spaces while others look to bring on partners to develop the concept and then deliver a plan/playbook to drive increased notoriety, volume and profitability; however, this requires giving up some control.

2. Location, Location, Location: Incorporating the destination experience into the hotel and restaurant concepts creates an opportunity to keep guests on property and engage locals. In some destinations, it’s best to bring in local chefs and collaborate between the brand and local flavors. In markets like Las Vegas, it’s better to identify the existing or target guest and work backwards to determine what they want.

3. Consistency Meets Evolution: “Great consistency” equals great service, great product, and great food. Taking that one step further, great consistency also means constantly changing and evolving to stay relevant, meet guest demands and exceed expectations.

4. One Size Can Fit All: To address the challenge of guests dining in a venue multiple times a day, consider different lighting, music and/or uniforms to create new experiences within the same space. The rising trend of all-day menus can also deliver a better guest experience and ease staff of training and prep while reducing kitchen turnover.

5. Demand Drives Change: As consumer behaviors change, F&B concepts must also adapt. For example, brunch has begun to expand to multiple days a week, offering an experiential meal at a lower price point; mixology-driven cocktail bars have addressed the need of keeping people on property to meet after hours; and group dining is incorporating curated themed/branded experiences.

6. Private Dining and Partial Buyouts on the Rise: No space is off limits today as operators look to maximize every square inch of their properties. Hoteliers and restaurateurs have become much more creative in activating underutilized spaces or vacant meal periods to sell space for private events. Operators have begun leveraging partial buyouts to drive compression and profitability in their venues with 20-80 person events on the rise.

Thanks for joining the panel!
-Daniel Hostettler, President & CEO, The Boca Raton
-John Kunkel, Founder & CEO, 50 Eggs
-Christian Glauser Benz, VP Development, US, LATAM & Caribbean, Dream Hotels, Hyatt Corporation

12/11/2023

Our Q3 Hospitality Dashboard with industry insights and trends is now available!

A few to highlight:

-2023 RevPAR growth projected at 4.3% - 5.2%, 2024 forecasts 2.7% - 4.2%
-Airbnb & alternative lodging supply ranges from 9.4% - 38% of existing hotel inventory, shrinking in cities with strict legislation
-NYC, Phoenix, Nashville lead in under-construction volumes
-Debt market conditions are steady, overall borrowing rates doubled since Q1 2022

Access the full dashboard and explore these trends in detail by signing up here: https://www.hotelave.com/hospitality-dashboard/

Access HotelAVE's Quarterly Hospitality Dashboard to receive the latest insights into the hotel management industry. Our hotel asset management experts deliver the latest trends in the industry including topline outlook, investor surveys, financing trends, and US hotel KPIs.

12/07/2023

✈️ Ready for Takeoff! Excitement is soaring as the holidays approach and travel rebounds.

Across the board:
-Loyalty programs and points redemptions are fueling a strong recovery in business travel.
-US airlines are seeing major growth in international demand, especially in the Asia Pacific region, which is poised for the fastest short-term surge.
-New routes are opening up, with JetBlue launching services to Paris, Dublin and Edinburgh
-All major airlines anticipate exceeding pre-pandemic levels, with Delta and United leading the charge by forecasting robust performance growth and continued capacity expansion.

Reach out to learn how hotels can capitalize on these travel trends.

11/21/2023

Our Third Quarter 2023 Hospitality Earnings Summary is now available, revealing positive trends in the industry's recovery. Highlights include impressive mid-teens RevPAR growth, rebounding business demand, and soaring group revenue. Download the full summary to stay informed and join the conversation on the future of hospitality.

The hotel industry is experiencing a robust recovery, with occupancy growth driving RevPAR gains despite challenges like rising costs.

11/17/2023

Our CEO, Michelle Russo, sheds light on the growing demand for hotel EV charging stations on CoStar.

As more travelers opt for electric vehicles, hotels like Hilton and Marriott are stepping up. Read the article for more insights on this evolving industry shift.

Guests Willing To Pay More Now To Charge Cars, But Soon May Expect It To Be Free Amenity