Skip to content

Search

Latest Stories

HotStats: Asia-Pacific numbers predict U.S. revenue decline

Profits could drop 40 to 60 percent due to pandemic related downturn

TROUBLE IN THE Asia-Pacific region could foreshadow an “ugly March and April” in the U.S. market as profits potentially drop 40 to 60 percent compared to last year, according to HotStats.

HotStats’ “Suntrust Robinson Humphrey February 2020 Hotel P&L Analyzer” found China’s total RevPAR dropped 51 percent in February compared to last year while GOPPAR dropped 108.3 percent. The novel coronavirus currently causing a pandemic around the world originated in China.


“Assuming continued containment in major Asian countries, results in March and April could be somewhat of an indicator for the North American and European recovery (hopefully) later this year, although we note that domestic Chinese travel will likely rebound faster than international inbounds (and Asian inbounds likely faster than Europe and North America given flight restrictions),” the Suntrust report said.

Two other Asia-Pacific countries, Australia and Japan, which have labor costs more comparable to the U.S., provide a more accurate forecast. Japan’s year-to-date total RevPAR is down 11 percent and GOPPAR is down 29 percent underr last year. Sydney’s total RevPAR went down 8.1 with a 13.5 percent drop in GOPPAR, and Melbourne’s total RevPAR was down 6.9 percent while GOPPAR dropped 10.9 percent.

“We find this range a good starting place for evaluating the potential profit loss for upper upscale and luxury hotels in the U.S. given the unprecedented situation of hotels running very low occupancy,” the report said. “We advise clients that the material EBITDA margin reductions after 9/11 and the global financial crisis of 2008 provide modest precedence. U.S. rooms RevPAR fell at peak 30 to 35 percent in the worst month and by and large most hotels stayed open. Having hotels close en masse has not occurred since the Great Depression, where hoteliers sometimes kept room lights on simply to give the impression that hotels were busy.”

In March, HotStats provided tips on how to survive the COVID-19 economic crisis.

More for you

U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
U.S. travelers using mobile devices to book independent boutique hotel stays with personalized offers and smart tech in 2025

Study: Personalization boosts independent hotel bookings

Summary:

  • Around 95 percent of U.S. travelers are more likely to book independent hotels with personalized offers, according to TakeUp.
  • 59 percent plan more travel in 2025, with 78 percent favoring weekend getaways and 65 percent domestic trips.
  • Top booking deterrents are few reviews at 39 percent, unclear cleanliness or quality at 38 percent and inflexible cancellations at 29 percent.

PERSONALIZED OFFERS BASED on interests would make 95 percent of U.S. travelers more likely to book at an independent hotel, according to TakeUp, a revenue management platform for independent hotels. About 85 percent are open to technologies such as smart check-in, recommendations and AI-based pricing.

Keep ReadingShow less
Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less