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

Trump reviewing 55 million us visas
Getty Images

Trump reviewing 55 million visas

Summary:

  • The Trump administration says it is reviewing more than 55 million visa holders.
  • Reviews cover a wide range of visas for law enforcement and overstay violations.
  • The administration also suspended worker visas for foreign commercial truck drivers.

THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.

Keep ReadingShow less
Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Spark Acquires Home2 Suites Wayne, New Jersey
Photo Credit: Hunter Hotels

Spark acquires Wayne, N.J., Home2 Suites

Summary:

  • Spark acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey.
  • Hunter Hotel Advisors facilitated the transaction with DC Hospitality Group affiliates.
  • The 2020-built hotel is near William Paterson University and less than 20 miles from Manhattan.

SPARK GHC RECENTLY acquired the 120-key Home2 Suites by Hilton Wayne in Wayne, New Jersey, from affiliates of DC Hospitality Group. Hunter Hotel Advisors facilitated the deal for an undisclosed amount.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less