Skip to content

Search

Latest Stories

HotStats: Profits dropped to negative value in March

The month’s 110.6 percent fall in GOPPAR is the largest ever recorded for the country

AS THE MONTH in which the COVID-19 pandemic began, March saw the first drops in hotel profits around the world, according to HotStats. In the U.S., as elsewhere, the decrease was to more than 100 percent down from the previous year.

GOPPAR dropped 110.6 percent to negative $12.71 during the month in the U.S., which was home to a third of the more than 2.7 million COVID-19 cases recorded globally. It was the largest decline HotStats has measured since it began tracking U.S. data, beating -10.4 percent in March 2015, and was the first time GOPPAR was recorded as a negative value.


“The decrease in GOPPAR was a result of mammoth drops on the revenue side. RevPAR for the month was down 64.4 percent, heavily influenced by a 48.8-percentage-point drop in occupancy to 31.5 percent,” HotStats said in a statement. “The presumption is that April occupancy will suffer even more, as many hotels were still open in early March.”

TRevPAR also dropped a 62.1 percent as a result of the dip in RevPAR, along with a more than 65 percent drop in total F&B RevPAR. Expenses also dropped as hotel operations slowed, with labor costs going down 21 percent

“However, savings in payroll did not match drops in revenue, since many hotels still had to maintain certain levels of staffing, even amid shuttered hotels,” HotStats said.

March’s profit margin fell 52.8 percentage points to -11.6 percent.

“As COVID-19 conceivably lessens or peters out in the ensuing weeks and months and hotels reopen, expectations are that hotel performance will pick up from the depths it is in currently,” HotStats forecast. “But with demand tied closely to GDP growth and expectations of double-digit drops in the second quarter across the globe, hoteliers will be hard-pressed to generate a modicum of revenue throughout the rest of the year and likely will have to wait until there is a vaccine to see profits normalize.”

HotStats had foreseen an “ugly March and April” in the U.S. market based on declines in the Asia-Pacific region in an April 10 report.

More for you

Global Hotel Rates to Stay Stable in 2026

Report: Global hotel rates steady despite uncertainty

Summary:

  • Global hotel rates are expected to remain stable through 2026, according to AMEX GBT.
  • New York is a key business travel and meetings destination.
  • India is likely to be a focus for travel programs during 2026 negotiations.

GLOBAL HOTEL RATES are expected to remain stable through 2026, as geopolitical tensions and potential U.S. tariffs limit demand and constrain price increases, according to American Express Global Business Travel. New York remains a popular destination for business travel and meetings.

AMEX GBT’s Hotel Monitor 2026, an annual forecast of global hotel rates in business travel destinations, identified India as a key market, with hotel rates and occupancy set to rise.

Keep ReadingShow less
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