References
NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
Investing in Hotels & Motels
Hope on the Horizon for City Hotels, Report Finds (Crain’s New York Business, Jun. 21, 2022)
“The firm is optimistic about hotels for the rest of 2022 and moving forward based on factors including construction slowing down, strong employment and economic growth, inflation and a solid performance during the first quarter of the year. The average daily rate for a room in the city should surpass pre-pandemic levels by next year, reaching $251.77 in 2023 and $263.25 in 2024, compared with $243.07 at the end of 2019, the report says.”
New Deals, Investments Return to Hospitality Industry Following Two Year Lull (The Economic Times, Jun. 17, 2022)
“Even though hotel demand plummeted by 57% early in the pandemic, leisure travel was enough to double the overall hotel occupancy rate from its pandemic low by late summer 2020. By July 2021, overall revenue per available room (RevPAR) reached 94% relative to 2019, according to Kalibri Labs. What’s still largely missing, however, are individual business, group business and international travel bookings. As a result, core urban areas—particularly U.S. gateway cities—are languishing, with some markets down as much as 67% in RevPAR relative to 2019.”
Investors Check into Hotel Market as Travel Picks Up (The Wall Street Journal, Apr. 19, 2022)
“Hotels were hit harder than any other type of real estate during the early months of the pandemic. Now, investors seemingly can’t get enough of them. More than $12.5 billion worth of hotels were sold in the first three months of 2022, according to CoStar Group, the highest first-quarter figure since 2016. The prices of hotels for sale are surging and the share of delinquent hotel mortgages recently fell to a new pandemic low.”
Hotel/Motel Management
Open Distribution: A New hotel Booking Model for Hospitality’s Future (Skift, Jun. 21, 2022)
“Open Distribution is a new model that allows hotels and room sellers to work together seamlessly. In addition to cutting out those inefficient layers of middlemen, it drastically reduces the amount of time needed to get up and running. Consider the old world where room sellers and hotels would need to agree to commercial terms, take six weeks to build out an integration, test it, coordinate sending images of the property, and all the other cumbersome steps involved before ever actually booking a single room. Now, all that work is taken care of.”
20 Hotel Tech Innovations to Know (Hotel Management, Jun. 17, 2022)
From outdoor wireless connectivity to virtual front desks, guest expectations are evolving – are you ready to meet their expectations? This list of 20 hotel technology innovations is wide ranging, but certainly focuses on better connectivity (outdoors, high-speed), high tech furniture, cleaning, and check-out procedures, and improved accessibility.
Safety & Security Issues
Meeting the Changing Needs of Hotel Security and Guest Experience Expectations With Cloud-Based Security Solutions (Hotel Management, Jun. 20, 2022)
“Trust is an unwritten contract between hoteliers, their guests and staff members. In a world that can feel unpredictable, people seek out familiarity. When they walk through the doors of your hotel, they want to know you will take care of them during their stay or work shift. This includes keeping them and their belongings safe.”
Will Daily Cleaning Return to Washington DC Hotels? (Cleaning & Maintenance Management, Apr. 13, 2022)
“Emergency legislation passed last week in Washington, D.C. may result in housekeepers going back to work, DCist reports. The new legislation, which the Washington D.C. Council passed by a vote of 11 to 2, authorizes the district’s mayor, Muriel Bowser, to set standards regulating the cleaning and maintenance of hotel and motel rooms. UNITE HERE Local 25, a labor union which has hotel workers among its members, pushed for the legislation. Union leaders say hotel regulations have not been updated in more than 65 years.”
How to Optimize Data Security at Hotels (Hospitalitynet, Apr. 13, 2022)
“One of the first considerations when it comes to data security in hospitality businesses is to ensure that your staff is trained. The majority of data breaches today stem not from direct attacks but from human error. It’s all too easy for employees to make a mistake that leaves your data open to hackers who are all too happy to exploit it.”
Appraisal Considerations
Indian Hotels’ Taj Ranked World’s Strongest Hotel Brand by Brand Finance (Business Standard, Jun. 15, 2022)
“Indian Hotels Company's Taj has been rated the world’s strongest hotel brand while Hilton (brand value up 58 per cent to US$12.0 billion) has extended its reign as the world’s most valuable hotels brand, according to the latest report from the leading brand valuation consultancy, Brand Finance.”
Rates Drive US Hotel Recovery but Lag Inflation in Most Cases (CoStar, Jun. 10, 2022)
“There was a severe drop in hotel valuation in 2008 and 2009 followed by five years of recovery, said Stephen Rushmore, Jr., president and CEO, New York, at HVS. This most recent downturn was quite severe, but the recovery of hotel values was quick as well.”
3 Ways to Calculate Valuation for a Hotel Appraisal (Cayuga Hospitality Consultants, Jan. 25, 2022)
There are three widely used methods of valuing real estate – cost, income capitalization, and sales comparison. “Additionally, non-real estate characteristics (ie franchise) and the economic issues such as RevPar, Gross Room Revenue Multiplier (GRRM), capitalization rate and NOI per room are considered. Often these adjustments are made from a qualitative basis vs. quantitative. For instance, is the subject’s location the same, inferior or superior. Due to all of these considerations, the Sales Comparison approach is generally considered to be the least reliable.”
eBooks & Other Resources
eBooks.realtor.org
The following eBooks and digital audiobooks are available to NAR members:
Chocolates on the pillow aren't enough: reinventing the customer experience (eBook)
Growth Strategies for Hotels (eBook)
Hotel Success Handbook (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
2019 Hotel Management Survey (Hotel Management, 2019) E
2019 Hotel Management Survey Top Design Firms (Hotel Management, 2019) E
Commercial Real Estate Quarterly Market Survey (National Association of REALTORS®)
See this report for quarterly cap and vacancy rates for hotel properties.
Resort Development (Chicago: Urban Land Institute, 2008) NAC 1800 Ur1rd1
Climbing the Real Estate Risk Spectrum (Chicago: Real Estate Research Corp., 2007) HD 1375 R22c
Have an idea for a real estate topic? Send us your suggestions.
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