Key Takeaways: Lodging Conference
November 15, 2017 9:49am
By J. Carter Allen
Economic Outlook – Baring political and geopolitical uncertainty, the economy is anticipated to continue to expand by 2.5% to 3.0% annually for the next two years.
Lodging Fundamentals – Demand continues to outpace supply, a relationship that is forecast to change in 2018.
New Supply – The supply pipeline continues to grow, but remains well below the peak set in 2008.
Brand Growth – Brand companies continue to look for opportunities to increase scale in order to provide consumers with more options, which present both opportunities for new development and concerns over market saturation for owners and developers.
Lifestyle Semantics – With the growing proliferation of “lifestyle” brands, one of the breakout sessions aimed to define what exactly is lifestyle. While no universal definition was reached, the most compelling argument came from John Cohlan, CEO of Margaritaville Hotels, who contended that to truly be a lifestyle hotel, the consumer has to have a preconceived idea of what experience to expect before showing up to the property. This is most easily achieved by new “lifestyle” brands that have other business lines beyond hospitality.
Natural Disasters – Hurricanes, floods, and fires have impacted hotels across the country in the last several months. Owners in affected areas will need to manage short-term increases to labor and material costs throughout rebuilding, and long-term increases to insurance costs.
Valuation Factors – Rising interest rates are a concern for investors; however, the more substantial factor influencing valuation and closing transactions is the substantial PIP requirement that is becoming more common place.
j. carter allen,
HVS Senior Vice President Carter Allen oversees all hotel consulting and valuation assignments for the firm’s Houston office. Carter graduated from the University of Houston’s Conrad N. Hilton College of Hotel and Restaurant Management with an emphasis in Hospitality Finance and Development. He also served as President of the school’s student chapter of Hospitality Finance and Technology Professionals. Carter’s hands-on hospitality experience spans front-line work at The Houstonian hotel and operations and management internships with JW Marriott and CenterPointe Hotels. Contact Carter at (615) 982-3539 or email@example.com.
Sustainable Extravagance: Water-Wise Hospitality
Consolidation in Hotel Sector Likely as Operators Face Challenging Trading Year Ahead
HVS Market Pulse: Lubbock, Texas
HVS Market Pulse: Tampa, FL
Differentiating Lifestyle Hotel Brands in an Increasingly Competitive Category
The HVS Quarterly Macau Update
The HVS Quarterly Hong Kong Update
Five Reasons Why Developers and Owners Love Hotel Leases
HVS Market Pulse: Galveston, Texas
HVS Key Takeaways: CHICOS 2017
Market Pulse: Hotel Demand Takes Flight at LAX
Hospitality Industry Impact Studies
The Future of Casual Dining: What to Expect
Rising Costs Prove Challenge to UK Hotels Prompting Slowdown in RevPAR Growth
U.S. Hotel Development Cost Survey 2016/17
Public Involvement in Convention Center Hotel Financing
Barnhill to Lead Think Tank at The Lodging Conference Highlighting the Advantages of Going Independent
Hotel Market Update on Taiwan
HVS Market Pulse: Silicon Valley
2016/17 United States Hotel Franchise Fee Guide
Please login or register to post a comment.