November 12, 2018
Marriott, Hilton, IHG Dominate U.S. Construction Pipeline PORTSMOUTH, NH — According to the third quarter report by analysts at Lodging Econometrics (LE), the franchise companies dominating the U.S. construction pipeline with the largest pipelines are Marriott International with 1,380 projects/181,907 rooms, Hilton Worldwide with 1,350 projects/150,698 rooms and InterContinental Hotels Group (IHG) with 939 projects/95,312 rooms.
The construction pipelines for these three franchise companies comprise an impressive 68% of the total construction pipeline projects with Marriott and Hilton again setting all-time highs for their companies.
The leading brands by project count in the construction pipeline for each of these three companies are IHG’s Holiday Inn Express with 422 projects/39,667 rooms, Hilton’s Home2 Suites by Hilton with 401 projects/41,958 rooms and Marriott’s Fairfield Inn with 284 projects/27,678 rooms. These three mid-market brands are so dominant that they alone account for 21% of the projects in the total construction pipeline.
Other significant brands in the pipeline for each of these franchises are: Hilton’s Tru by Hilton with 302 projects/29,245 rooms and Hampton Inn and Suites with 300 projects/31,013 rooms; Marriott’s TownePlace Suites with 207 projects/21,525 rooms and Residence Inn with 204 projects/25,014 rooms; and IHG’s Staybridge Suites with 147 projects/15,427 rooms and Avid Hotel with 142 projects/13,160 rooms.
Expansion in Chinese Market
Shanghai Hotel Opens With Residential-Style Spaces Thailand-based Onyx Hospitality Group has opened its 50th property—Shama Hongqiao Shanghai. Located in the Hongqiao Business District, Shama Hongqiao Shanghai is close to the National Convention & Exhibition Center, Hongqiao International Airport and Hongqiao Railway Station.
With 132 apartments offering a variety of layouts from studio to two-bedroom residences, all units come with high ceilings, providing an extra element of space for both travelers as well as longer stay residents. For the enhanced feel of home, each apartment is fitted with a customized Shama Slumber bed, fully equipped kitchenette, storage space, dual laundry washer and dryer, LED TV with international channels, WiFi internet access and a work desk. Hyatt Expands in Asia With Business District Property Hyatt Hotels Corporation has opened the Hyatt Regency Xuzhou in China’s Jiangsu Province. As the newest global-branded hotel in the city, Hyatt Regency Xuzhou is located at the center of contemporary Xuzhou within the landmark 873 ft. (266 m.) International Finance Center, in Xuzhou’s Central Business District. The hotel has 344 guestrooms including 25 suites, four executive suites and a presidential suite, four dining options and 8,022 sq. ft. (2,445 sq. m.) of event space. The new hotel crowns the uppermost floors of Xuzhou’s tallest tower. Designed by P49, elements of Chinese art, nature and local Han culture enrich the contemporary spaces. It is the only hotel in the five-tower Suning Plaza development featuring high-end offices, full-service residences and entertainment venues. The hotel is also close to High Speed Railway Station and accessible to the city’s major attractions and business districts. LN Garden Hotel Opens in China’s Bay Area LN Garden Hotel, Nansha Guangzhou, located in the Guangdong-Hong Kong-Macao Greater Bay Area, is open. It is designed to provide guests with one-stop destination experiences, within one of the newly established bay areas of China surrounded by mountains, lake, fields and wetlands. The hotel has 365 guestrooms, six international dining options, indoor and outdoor pools, golf course and meeting and event spaces. BEST WESTERN CEO SAYS FUTURE MORE BRANDS….. Appearing in Australia, CEO David Kong, spoke frankly about his continued desire to expand Best Western into a new base away from just Membership. He further indicated the approach is gathering positive results from the established BW Membership base. Kong repeated earlier remarks reminding the public of Best Western launching new brands starting in 2014 with VIB and followed by PREMIER COLLECCTION soft brands. BW has been aggressive since with GL0, SureStay Hotels, and SureStay Plus, and SureStay Collection, along with the Executive Residency in 2016, and BW Signature Collection in 2017. Best Western is very positive regarding future growth in Australia said Mr. Kong in Sydney. BW has 115 independently owned and managed opropoperties in Australia. While speaking to the audience Mr. Kong favorably voiced Best Western’s interest in owning more hotels as their base of distribution grows both in USA, but also other Countries. The Company’s current Member base is voting this year on changing from the Membership base of Owners to stock base. As an incentive Best Western is offering each current Member sizeable number shares of stock in the new Stock platform.
July 9, 2018
MARRIOTT ANNOUNCES FIRST HOTEL PURCHASE IN FIVE YEARS ! American Motel Hotel Brokers Network, Phoenix Headquarters, relates that Marriott’s ‘first’ real estate purchase in five years occurred as June was coming to an end. Marriott International confirmed they made their first hotel real estate purchase in last five years when they bought The Sheraton Grand Phoenix Hotel for $255 Million Dollars. The $255,000, per key price does not reflect the major renovation Marriott will be undertaking. The ‘down town’ Phoenix hotel will benefit from the rejuvenation of the 1000 guest rooms and the public space. Goal is to transform the Hotel into “today’s prize model” of Sheraton Brand. Arne Sorenson, President and CEO, Marriott International pictures “the hotel as providing a living and breathing showcase of our new vision for the Sheraton brand, underscoring our commitment to restore the brand to its leadership position” | US – CHINA TRADE WAR….”CONSEQUENCES” ! Really little Hotel Investor reaction to President Trump’s first new tariff policy on China. Financial markets also were not shocked. When US enacted the $34B in tariff’s against certain China goods, the markets were expecting it. Currently another $16B of tariffs being reviewed. Again, no negative response from our Hospitality/Lodging Industry to date. However, if the Trump administration needs to implement another sizeable tariff and the “trade war” escalates, some within our Industry, and well as the US Financial Markets, do not know at this time the indirect impact on Hotels, but are showing some concerns that such could lead to a decline in the US Financial Markets including Hospitality/Lodging.
July 10, 2018
NEW PRESIDENT OF MEXICO …..MANUEL LOPEZ OBRADOR ! Former Mexico City Mayor Lopez Obrador became Mexico’s new President for next 5 years and 10 months. Obrador was the first Candidate since 1988, that won by an outright majority. Besides his purposes of correcting security concerns across Mexico he promised major changes in economic goals. This includes building more hotels, and renovating some of Mexico’s showcase of hotels that have been ‘mistreated’ badly in the recent years of unrest in Mexico. Mr. Obrador targets a government that will enable socialization, productivity and personalization featuring elaborate venues and technology that enable unique experiences for the people of Mexico…..and the return of visiting guests especially from America .
July 11, 2018
AMERICAN MOTEL HOTEL BROKERS NETWORK CREATES 360 DEGREE PANORAMAS ! AMHB Network, America’s oldest, continuous Hospitality and Lodging Company is adding another Major Marketing Feature for both its Sellers (Owners), and it’s Buyer (Clients). Mike Sprinkle, Chairman and CEO of this 48 Year, Eleven Billion Dollar Brokerage Network, announced today, “American Motel Hotel Brokers, and it’s nationwide Member Broker base, is launching the First, Creative augmented and virtual reality platform for our tens of thousands Clients. Beautiful 360 degree Virtual Tours with the VR Editor using panoramas capturing the true experience of ‘being within the Hotel’ and ‘on its grounds’ which gives the purest feel of the Hotel being offered For Sale.” AMHB Network’s Marketing team’s deadline for entry into the market is July 30!
Industry News…. BANKS EAGER FOR HOTEL LOANS ! The timing is ready for borrowing cash from banks. Troy Miller of Starwood Property Trust spoke to Hotel and Lodging stating, “It’s time…If I am a borrower. You borrow all you can borrow right now.” Hoteliers are in concurrence with the Banking Industry that with lending rates ready to rise, now is the time to Buy or Refinance. According to industry bankers who also cite rising interest rates, banks are in fact prepared to lend at once on refis and hotel acquisitions.
May 1, 2018
Hyatt is Contemplating Changing Group Commission Policy…… Mark Hoplamazian, CEO of Hyatt, announced at the World Travel & Tourism Global Summit that Hyatt is considering lowering its rate on group commissions because of several factors. Marriott lowered its group commission rate from 10% to 7% for North America bookings last month, and Hilton will follow suit in October.
Airbnb is Forcing Everyone to Up Their Game: How Hotels are Changing Tack….. There are multiple ways hotels can compete with Airbnb, such as targeting a different audience and offering excellent service. According to a report by Morgan Stanley, 42% of Airbnb users have replaced traditional hotel stay with an Airbnb property.
NEW AMERICAN TAX LAW CAN REALLY BENEFIT INVESTORS…BOTH THE SELLER AND THE BUYER ! Tax Specialists including CPA’s see the new American Tax Law as a real prize for Hotel investors….both Sellers, and, Buyers !
Here are a few basic examples. American Motel Hotel Brokers strongly recommends before acting one should consult with their CPA, or other Tax Advisor. The Tax Law has more Depreciation Options. One really big option is the “Bonus Depreciation”. There is a 100% “depreciation bonus” on acquisition of existing assets. This Bonus is in effect until year 2022. Previously there were some laws favoring ‘new built’ bonus depreciation, but now for next few years can also be used on new acquired Hotels. There is a 20-% deduction of ‘Pass Through’ income that Partnerships such as LLC and Real Estate Investment Trusts can achieve. The 1031 can now be moved from just ‘asset to common asset’. May now also be used to defer taxes on Investments gains in ‘other forms of real estate’ via referred to “opportunity zones”. New Equipment can now be covered immediately as a write off in many instances. The Summation of these new Tax Rules can greatly benefit Hotel Investors that have a good generating cash flow asset, but depreciation has been, or is being, used up. They may now have choices of assets to select new cash flow opportunities and gain new accelerated depreciation.
ARTICLE: MAY 1, 2018
HIGH DEMAND MARKETS FOR BUYERS….CONTINUE TO SHOW GROWTH ! The 2018 Hospitality and Lodging business continues to ‘shine brightly’ in markets serviced by American Motel Hotel Brokers Member Brokerages, reports AMHB Network corporate office in Phoenix. Demand in such markets as Arizona, California, Colorado, Dakota’s, Florida, Georgia Illinois, Kansas, Montana, Nebraska, etc., is actually exceeding the supply of well-priced-well financed Hospitality properties. The earlier fear that a slowdown would occur in 2018, has been mostly erased. Based on the hundreds of calls received daily, Bruce Barnes Vice President of AMHB’s Development Department reports, buyer demand is equal to, and in most instances, greater than 2017. Barnes’ went on to say that due to fact that AMHB Network has continuous conversation with their Members, he has ‘1st hand’ facts regarding Buyer demand. Because of this, American Motel Hotel Brokers Network Members have been especially active in acquiring ‘New Product’ to Offer the Buyers contacting AMHB. Today the Inventory is turning over more quickly than the prior two calendar years. To further support these facts, AMHB Network Research Staff has found all year a continuing upward trend in Occupancy, Rate and Revenue Per Room at Hospitality and Lodging properties.
INDIA HOTELS CONCERNED…. Luxury hotels in India fear business drop from 28% Tax assessed to luxury hotels in India. Many expect stiff declines in inbound tourism that will hurt hotel’s growth reports India’s The Economic Times.
BLACKSTONE AND SPAIN’S HISPANIA…. Blackstone is preparing to make a full takeover bid for the Spanish property group Hispania. Hispania is valued at approx.. $2.3 Billion (American). Blackstone is reportedly offering to purchase 16.65 % of Hispania stock for $386.1 Million (American).
NEW RETAILER HOTEL TREND…. Japanese homeware and lifestyle brand Muji, and brewer BrewDog are opening new branded hotel space. These are examples of a new Hospitality sector trend. Laura Ashley, already ventured into hotel retailing, is opening additional locations in Middle East and the Asia Pacific.
CHINESE TRAVELERS CAN NOW USE DIGITAL PAYMENT…. Millennium Hotels in partnership with digital payment platform, Alipay, now offers travelers from China the ability to book and pay for hotel rooms and misc. services at their Hotels. Alipay has more than 600 million Chinese users.
AMERICAN STATISTICS UP ACROSS THE BOARD…. From STR Reports, week March 4 – 10, US Hotel occupancy increased by 1%….to 68% average; ADR up 2% to $131.46; and, RevPar rose 3.1% to $89.53. American Motel Hotel Brokers Network from their recent sales and new Listings of over 30 for January and February agree that rates and occupancies are trending upward. With the expected increase of Bank Lending, Mike Sprinkle, AMHB Network Chairman and CEO feels, following the anticipated changing of some aspects of Dodd Frank banking regulations, travel will continue to grow in 2018.
EXPECT LARGE INCREASE OF FAMILY TRIPS THIS YEAR ! Based on AMHB Network Research Department, research indicates from study that 88 million are planning “family trip” in 2018. These 88 million Americans plan to take FAMILY vacations this year. According to AAA Travel, 44% of millennials are planning a family getaway. This is actually more than the members of Generation X that stand at 39%; or the baby boomers at 32%. As families have done for prior generations, these family oriented trips are the one time in many families ‘to be together’. Therefore, hospitality and lodging are main events in planning the trips.
EXPECT BANK LENDING TO EXPAND….. Eased Bank lending rules should increase given this week’s banking changes….including spreading into smaller Regional banks……
LIVE PLANTS KEEP HOTELS VIBRANT….. Top hotels in America are keeping their public spaces more vibrant with live plants American Motel Hotel Brokers Network learns from outside reports. Top hotels, though more expensive, are finding that using live plants in public areas are receiving very positive comments from their guests. The overall guest experience, is well worth the cost of the upkeep. Comments,and return reservations, further support this friendly amenity.
IF IT WALKS LIKE A DUCK….AND QUACKS LIKE A DUCK !!!!…… Miss Ricca, Editor, writes that the ‘new’ Airbnb is looking more and more like a hotel company. What will ‘you’ do about it?
THE FUTURE OF HOSPITALITY/LODGING ! That future lies squarely in hospitality companies and management employing advanced technologies land solving marketplace challenges. This will be done in ways that exploit their competitive advantages….their people, says Mr. Kerry Ranson, HNN columnist. In doing this, Mr. Ranson states, the challenge is to attract quality individuals to tour organizations which will foster the genuine experiences that guests savor.
“SHRINKING ROOMS GIVE WAY TO MEETING SPACE…..” Construction Dive reports that today’s hotel makeover tend to downsize the room square footage in favor of more vibrant social spaces, upscale retail, and more usable meeting space. In most of these revisions of space usage, experts state that security will command priority.
“PARK HOTEL AND RESORTS EXERCISING PURCHASE OPTION” Park has announced that underwriters are exercising option to repurchase 5,171,929, additional shares of common stock. This repurchase option comes on the heels of a secondary offering to shareholder HNA Tourism Group
TIDBIT : CENTRAL AND SOUTH AMERICA HOTELS continue to report upward growth. Occupancy rose 4.5% to 57.6% during past 30 days; ADR increased 7% to $1908; and RevPAR rose 12.l8% to $62.
WHILE CENTRAL/SOUTH AMERICA ROSE MIDDLE EAST AFT RICE saw ADR drop 4.5% land RevPAR slide by 3.7%.
TIDBIT : AMHB MEMBER MONTANA and WYOMING OFFICES (Chuck Platt – Billings; Pat Green – Gillette, Wy.) are reporting are upping their game in terms of one-of-a-kind activities designed to provide guests with exceptional experiences to be remembered as guests return home. Many exciting experiences are now being offered….as an example, “saddle up with cowgirl legends as hotel activities go off the beaten path in exciting Western Style adventures”.
TIDBIT : NAPA Valley
The Napa Valley Register reports that the famous Napa Valley experienced a 36% year over year drop in October hotel revenues. Smith Travel further reported a 22% decline in occupancy which extended into November. Experts expect similar numbers to be experienced regarding the December fires in Ventura and lower Santa Barbara Counties, California
TIDBIT : Current SBA 504 November
Interest rates are:
20 Year Purchase Rate: 4.503%
20 Year Refinance Rate: 4.560%
10 Year Purchase Rate
Nov – Dec: 4.373%
TIDBIT : 54 YEARS AGO THIS MONTH……
The body of President John F. Kennedy was laid to rest at Arlington National Cemetery. His Widow, Jacqueline, lit an “eternal flame” at the grave-site.
TIDBITS OF CURRENT NEWS
California reports $6.2 Billion 2017 sales transactions.
This upward trend continues for 2018 according to American Motel Hotel Brokers accumulated statistics. Further, United Kingdom transactions are reportedly up 32% from Overseas Investors….including much American with a combined figure accounting for more than half.
Canada hospitality business ‘jumps’……
AMHB Network from their Canadian reports receive data of Occupancy and Rate growth similar to USA during first quarter, 2018. ADR is up 4.7% to $154.55 ($117.13 USA); and RevPar up 7.5% to $94.88 ($73.07 USA).
WHOA ! INFLATION SLOWS…..
Per the US Government Reporting Agencies, Inflation slowed during February in USA…..
MARCH 16th, 2018
Following a South American hotel lodging surge, Brazil is reporting a 10.2% increase in year over year occupancy increase for early 2018.
2017 ENDING WITH HOTELIERS SOLID GAINS…. As American Hoteliers end 2017, the North American Hospitality Review (NAHR) reports the following up ticks in Occupancy, Occupancy and RevPar. All travel segments have enjoyed: ADR, up 1.4%; OCC,up 3.9%; RevPar up 5.4%. Group Travel appears to lead the segments with : ADR , up 1.9%; OCC up 5.5%l and RevPar up 7.5% But, the lowest being Transient Leisure hit: ADR,up 0.5%; OCC up 4.3%; and RevParup 4.8%. It is surmised these upward trends are a result of favorable economic trends. It is expected that Holiday travel will increase nicely this year. Most regions of America are reporting very favorable Thanksgiving travel results.
CITIES USING HOTELS TO ‘REVIVE’ RETAIL CENTERS Cities with struggling retail centers are offering developers tax breaks to build Hotels in such usable space. The cities objective is long term. The development of tax revenues utilizing new Hotels as their product is catching on with American cities such as the Hotel and Convention Center in Brookfield, Wisconsin. DAYLIGHT SAVING TIME ENDS NOVEMBER 5TH…… Do not forget to change your clocks this coming Sunday… except in Arizona, parts of Indiana and New England… where time does not change !…… GREAT BRITAIN INVESTIGATING OTAs…… Hotel Smart Brief reports that Online Travel Agencies are under the British “official scrutiny” in Great Britain. The British authorities scrutiny is founded on “suspicion of misleading consumers and possibly violating the law”. The practice of unclear and inaccurate information on the OTAs is increasing the difficulty for the Users of these OTA’s to get accurate and not misleading information. This is resulting in difficulty for Users to in finding the ‘best deals’; the accuracy of what seems to be the ‘best deal’, the Competition and Markets Authority of Great Britain asserts.
CHOICE HOTELS AIM FOR COMFORT EXPANSION… Choice is reporting focus on increasing Comfort Inn distribution in No America.. They have opened 10 new ‘builds’ and/or ‘conversions’ last 3 months.. Texas (2) – Kansas (2) – and one each Mississippi, Tennessee, New Mexico, Michigan, South Carolina and Canada. The goal is to open at least one per month. Vice President of Development states current Comfort Inn lead in Upper and Mid-Scale segments. He says, “Choice is providing the tools not just for today, but support for our Hoteliers in future”. American Motel Hotel Brokers Network, America’s longest continuous named hospitality and lodging brokerage servicing Owners and Buyers throughout USA and some International venues, reports that Bruce Barnes, 40 year Veteran Hotelier has become Vice President of Member Development. Barnes will be concentrating on the continuous opening of new geographical markets within Canada and USA. Offering to experienced Hospitality/Lodging Brokers and Agents the opportunity to provide their Clients with an Inventory of over $300M hotels FOR SALE..and those ready to sell, the opportunity to have their Hotels offered to over 20,000 pre-qualified Buyers.
SAVANNAH . . . GEORGIA HOTEL & LODGING ASSOCIATION PRAISES – SEPTEMBER 6, 2017 Savannah occupancy in 2016 was up by 5%, speakers at GHLA Meeting reported. All signs indicate this trend will continue upward in 2017 reaching 71.8%. This compares to last year’s rate of 70.8%. It is reported that nationally, hotels are expected to finish 2017 at 65.6%. American Motel Hotel Brokers Network concurred with the occupancy increases, stating they are offering for sale a Best Western that is enjoying a 6% occupancy increase this year . . . and a guest revenue increase of over $400,000. S
AVANNAH VISITORS KEEP GROWING: 2012 12.4 Million 2013 13.0 Million 2014 13.4 Million 2015 13.7 Million 2016 13.9 Million 2017 14.2 Million (forecast) CHINA FOREIGN INVESTMENT FACING RESTRICTIONS – SEPTEMBER 6, 2017 The beginning signals of a China “slow down” in USA investment opportunities shows signs of moving into the Hospitality and Lodging sectors, stated Mike Sprinkle, CEO of American Motel Hotel Brokers Network, at a recent AMHB Network market study forum for AMHB Member Brokers. Major Chinese investors who also have interests in hotel investing such as HNA Tourism Group, Shanghai Jin Jiang Int. Hotels, Anbang Insurance, and others are receiving government restrictions in China related to overseas investing. The Chinese government is beginning to “cry alarms,” Sprinkle repeated when asked why the underlying change in Chinese investing in America. Sprinkle indicated the primary cause is that the Chinese government is concerned about the levels of bank-secured debt Chinese companies are deploying abroad. However, Sprinkle went on to state that the influx of new money coming into our Hospitality and Lodging Industry surely seems to be offsetting any telling effects on AMHB Network sales. HOSPITALITY/LODGING INDUSTRY CAN EXPECT MERGERS – SEPTEMBER 5, 2017 American Motel Hotel Brokers Network is reporting an anticipated development of mid-size companies considering mergers. The Fitch Ratings seem to agree with American Motel Hotel Brokers Network’s research, except Fitch is taking their opinion down to even smaller companies. This anticipated business change is attributable primarily to Marriott International and Hilton Worldwide market control of pricing. As those companies enlarge their holdings, their control over increasing higher room rates continues to grow. This factor of increased distribution of “product” and the market control factor of allowing increased rates could well entice smaller and mid-size firms to merge. NEW HOTEL OPENINGS SPEAR INDUSTRY INTEREST – AUGUST 2017 Combined Industry Research reflects a surge of new hotels to be opened through year 2019. Spearheading this estimated 114,906 new hotel openings is the South Atlantic Coastal region with an estimated 24,698. Closely behind is the West South Central Region of Texas, Arkansas, Mississippi and Louisiana with an estimated 21,190. The Pacific Region of Washington, Oregon and California trails expectations, but still expects 17,881 new openings. Arizona and the vast Mountain Regions are slightly behind the Mid-Atlantic (14,3890) and East North Central (10,494) with 8,943 expected new openings. The smallest number of new hotel openings being forecast lives in the New England area, where approximately 3,045 are expected. A portion of these numbers are actual that cover the next six months. The remainder are forecast. THE FINANCIAL POWER OF TOT’S OVERLOOKED BY SOME – AUGUST 2017 The Transient Occupancy Tax is an important source of income for Municipalities. As a ‘pass-through’ tax, your guests are paying, but it is often not used by Hoteliers to advance their business. The economic impact of TOT from meetings, conventions, family gatherings, organizational meetings, and other small and larger group events is much respected by most cities and towns. Hotels using their Chamber of Commerce, local Universities/Colleges, Hospitals, etc., with the support of the City and County where located, can promote such events. American Motel Hotel Brokers, the oldest continuous Hospitality and Lodging Brokerage Firm in America, when providing service to their buyers at time of purchasing a hotel, introduces the new Owners to the city/town organizations. It is found that such introductions, combined with Owners’ use of the city and town support, builds ‘new’ sales growth for the Buyers (new owners). Especially the younger population of hotel guests, it is found by AMHB, will often use these city/town organizations as a resource for lodging, entertainment, dining, recreation, etc. LOVE HOME SWAP PURCHASED BY WYNDHAM – AUGUST 2017 The six-year-old Love Home Swap, with over 100,000 homes listed worldwide, is now part of the growing Wyndham organization. This “home exchange” platform was purchased by Wyndham for a reported $44,600,000. As the home exchange market, together with the home overnight rental markets, continue to grow, more American companies are entering. RED LION HOTELS FIND A NEW “HOME” – AUGUST 2017 Red Lion, after 43 years being in Spokane, Washington, is moving its primary headquarters to Denver, Colorado. Red Lion management intends to keep a Regional office in Spokane. Red Lion was originally formed as a primarily Northwest Hotel company with tentacles into California, etc. some 43 years ago. Citing the need, as they grow, for improved airline connections cemented their decision to relocate. ISLAND OF BALI LAUNCHES INTERCONTINENTAL HOTELS GROUP FIRST RESORT! – JULY 2017 Hotel Indigo Bali Seminyak Beach set to open today for IHG. It is the brand’s first Resort, and also their initial property in precious Bali. The resort covers over 4.7 hectares with beautiful landscaped gardens that add glamour and appeal to this 289 guest room hotel. Giving the total of 289 are 19 Balinese styled villas which offer private swimming pools and featuring seven lifestyle dining offerings for entire Resort. APPS……AND MORE APPS ! – JULY 2017 American Motel Hotel Brokers released information today that their New APP program for hotel owners, and those considering becoming owners in the Hospitality and Lodging business, has exceeded their initial goal by over 65%. For those interested in obtaining their AMHB APP….FREE.…go to the Apple Store or Google Play Store and ask for the APP. You may also contact American Motel Hotel Brokers at: firstname.lastname@example.org,…..or call, 602-230-9244. Comments from “recent users” are all positive, stated Joan Golden, Director of Technology.
NOVEMBER 9th, 2017
HOTEL RESERVATION CALL CENTERS BEING WASTED…….
A HTC Survey of over 20 Brands hired by Cloud5 is scheduled next week to issue an alarming report. The Report will state based upon a study that the hotel reservation call centers are being wasted as a revenue builder. They are being operated cheaply and the performance for their clients is poorly measured the study concludes.
OCTOBER 26, 2017
GET PREPARED !…….
Day Light Saving time changes Sunday, March 5th..
BEST WESTERN “SureStay” GETTING GOOD MARKS..
The new BW Brand is adding the Best Western name as ‘the brand’, as well
as including the popular Best Western Awards Program…
SEPTEMBER 21, 2017
Lodging Econometrics is stating that the Asia-Pacific new hotels under construction, excluding China, amount to approximately 342,670 rooms. The primary Hotel Companies in this Asia-Pacific construction mecca are Accor Hotels with a reported 52,487 (245 projects), followed by Marriott International with 239 projects, and IHG with nearly 200.
SEPTEMBER 19, 2017
Sanitaire reports that guests’ final choices for a hotel can vary. But, “cleanliness” is not a variable. Guests will book elsewhere if rooms are not clean . . . and will not repeat.
SEPTEMBER 18, 2017
SmartBrief reports that 76% of Senior business executives travel for business at least once per month. Reportedly, there are over 1,000,000 such travelers. They tend to devoted customers who maximize business travel through “Awards Programs,” and lean toward ‘Extended Stay’ accommodations.
BEES! BEES! DO NOT BEGONE – SEPTEMBER 7, 2017
New York City’s Hilton Midtown Hotel is adding 450,000 bees to its rooftop, “Insiders” reports. Purpose? Bees are assisting Hotel to harvest 300 pounds more or less of honey per year. The Hotel can now offer several honey dishes on its menu.
FRENCH TOURIST TRAFFIC – August 2017
The French tourist traffic is coming back strong after the 2016 terrorist attacks. Paris occupancy figures are up some 10% compared to 2016. The AMHB European Office reports that Melia Hotels, a major Spanish company, is aggressively seeking development opportunities in France.
FEDERAL PER DIEM RATES FOR FISCAL 2018 – August 2017
The General Services Administration, GSA, has announced that Federal Per Diem rates for Fiscal 2018 become effective October 1, 2017. The Standard Rate will be increased from $91 per night to $93 per night for Lodging.
ARE YOU TAKING ADVANTAGE OF THESE TRENDS/OPPORTUNITIES? – JULY 2017
The advancement of mobile phones, together with the numbers being used, give businesses great opportunities! As a Hotelier, follow this trend! Utilize this trend for your Social Media Marketing! It works . . . it makes you money! American Motel Hotel Brokers, America’s oldest, continuous Hospitality/Lodging Brokerage, altered their marketing and their Offerings for Sale . . . and their Sales have increased and phone calls have practically doubled from Clients.
HILTON LONDON HEATHROW AIRPORT SOLD – JULY 2017
American Motel Hotel Brokers Network European office reports a group from Norway, “Pandox,” has entered into contract to purchase. It is a 398 room hotel connected to Terminal 4. Price is 80 Million Pound.
AAHOA HOSTS “INDEPENDENT HOTELIERS CONFERENCE” – JULY 2017
On July 31 at the Hyatt Regency in Dallas, AAHOA will hold their Conference for those that are Independent Hotel Owners….AND….those interested in becoming Independent. The theme of the Conference is “a can’t miss opportunity” for Independent Ownership! With more discussion today about ‘going independent,’ the timing of AAHOA is worth. You can find more details on the AAHOA.com Website.
THIS IS HEADLINE NEWS – JULY 2017
AccorHotels with aggressive acquisitions is surging forward with “home-sharing” market. Accor is merging Squarebreak and Travel Keys into their One fine stay company. This will give Accor in range of 10,000 rental properties.
AMERICA’S “TOP” REV PAR GROWTH MARKETS – JUNE 2017
RevPar….Revenue Per Available Room….has become a more recognizable measure of profitability in recent years. It is also a measure for a market’s growth on dollars being spent on existing Lodging in a market. Based on a recent survey, it is reported that Tucson, Arizona leads America currently in RevPar Growth. Here are the ten top ‘growth markets’ for current and forecasted generation of Revenue Per Available Room for period 2016-2018.
City/State/% RevPar Change
Tucson, AZ 5.9%
Kansas City, KS/MO 5.7%
Jacksonville, FL 5.2%
Sacramento, CA 5.2%
Dayton, OH 4.6%
Richmond, VA 4.6%
Atlanta, GA 4.4%
Salt Lake City, UT 4.2%
Washington, DC 4.1%
San Antonio, TX 4.1%
HOTELS “PROFITABLY” BRING 2017 INTO THEIR OPERATIONS! – JUNE 2017
From various sources AMHB has ‘confirmed’ that Cordless upright vacuums DO clean a guest room 5X faster than a corded upright vac. From Survey that American Motel Hotel Brokers took, it was determined that if used correctly a cordless upright vac can save an average of 5 minutes for a standard guest room…for a 100 room hotel at 70% occupancy, that is a DAILY savings of 350 minutes = 5.8 hours. At $10 per hour labor, it is a daily savings of $58…and ‘really’ taking it to the NOI line, it is an additional profit for hotel of $21,170 annually.
Interested? Here is the product information AMHB discovered for you. These are ratings established by Amazon Prime. Rated from 9.8 to 7.6.
3. Black & Decker
Here are some costs provided by Amazon Prime.
1. Dyson VE CordFree….rated 9.8….$279
2. Hoover Cruise….rated 9.6….$143
3. Black & Decker SmarTech….rated 8.5….$150
SLOW YEAR FOR TRANSACTIONS…PROVING TO BE UNTRUE AT AMHB – JUNE 2017
According to Hotel Management magazine: “2017 is expected to be flat for U.S. hotel transactions”. The combination of lenders exhibiting caution, uncertainty surrounding interest rates, tax deductions, and income tax rates is giving investors “pause”.
This however is playing out to be untrue. The CEO of American Motel Hotel Brokers recently stated in an interview, “The largest number of new buyers we have experienced in the last five years are purchasing hospitality and lodging from AMHB in 2017. We receive calls continually from Owners. Last week alone 11 new hotels were put under contract to sell. We cannot comment on what others, within our industry are experiencing, but we do not see a so called ‘flattening’ of hotels for sale, nor ‘flattening’ of buyers wishing to buy.”
Statistics provided by AMHB sure show a different trend than forecasted:
Q1 – 32% increase in hotels, motels, and resorts placed in our inventory to sell for Owners
Q1 – 41% increase in hotels, motels, and resorts placed under sales contract by AMHB Member Brokerages
Year to date – over $160,000,000 total transactions within AMHB Network of Brokerages
Forecast by AMHB Corporate offices for 43% total transaction increase over 2016.
TIDBIT: Summer Season “Smells the Roses” – JUNE 2017
TIDBIT: 8TH Consecutive Year of Occupancy Growth – JUNE 2017
The increase in hotel demand in the first quarter of 2017 increased to almost 3%. This resulted in a 61.1% occupancy rate for the first quarter, which is the highest in the past 30 years according to STR. Given the positive economic outlook for the remainder of the year, STR is projecting demand to outpace supply once again in 2017, thus resulting in an eighth successive year of occupancy growth for the U.S. lodging industry.
TIDBIT: Good News for Hotel and Motel Owners – JUNE 2017
AAA estimates 39.3 million people will be traveling this Memorial Day weekend between Thursday, May 25 and Monday, May 29 and a majority of them will be traveling by automobile.TIDBIT: Brexit Could Cut Off Hospitality’s Labor Pool – JUNE 2017
The UK’s hospitality industry is heavily dependent on workers from outside of Britain, and Hyatt is cautioning that any loss of access to EU workers could hurt the industry. “I think the labor situation in the case of Brexit needs to be studied very carefully,” said Hyatt Hotel Corp.’s Peter Fulton.CUBA CONTINUES HOTEL ATTENTION! – MAY 2017
The famous 800 room and suite Cayo Santa Maria Resort has reopened under the Warwick Hotels and Resorts brand. Warwick completed a massive maintenance program preparing for the anticipated tourism growth for Cuba. The new, improved Warwick Cayo Santa Maria Resort is located on beautiful north shore of Cuba. It is close to the Santa Clara Airport.
Stepping forward also is Star-wood. The United States government has authorized Star-wood Hotels/Resorts to proceed with the operation of three hotels in Cuba. To further foster this enterprising gesture by the USA it is notably to emphasize that in giving permission to Star-wood the Company will be the first to do so in the past 60 years. In taking over operations of the Hotel Quinta Avenida, Santa Isabel and Hotel Inglaterra, they will precede operations by undergoing renovations and re-branding.
AMERICAN MOTEL HOTEL BROKERS NETWORK ENTERS DUAL BRAND POPULAR OPTION! – MAY 2017
As recently reported by Hotel Business, dual-branding is becoming an ever increasing popular option for hotels. “The sharing operational costs is a big ‘plus’ feature”, states Alex Kovacs, AMHB Member Brokerage in Denver, Colorado market. Kovacs goes on to say, “creating designs for each brand that are compatible to the total combined hotels can be interesting, but manageable”. AMHB Network, through their Denver Member office has announced a new ‘purchase opportunity’ for two major dual-brands consisting of over 140 guest rooms and doing between $4.5M and $5M in guest sales annually.
TIDBIT: American Motel Hotel Brokers ‘Research and Review’ Department joins in agreement with MCR Development CEO Tyler Morse in a Recent Hotel and Lodging Smart Brief – MAY 2017
The Hospitality and Lodging industry is currently “participating in a great ecosystem.” Mr. Morse states, “is going to last a long time”. AMHB’s Research and Review Department recently announced to their offices in the US that contrary to what some industry people earlier predicted, ‘hotel transactions thus far in 2017’ are robust.
Quatar Intends $6.3 B Infusion in Next Three to Five Years in British Hospitality Industry – MAY 2017
At the Pounds falling value, tourism in Great Britain is benefiting. In the planned $6.3B investment, Quatar will add to its already $40 billion + investment in British hospitality.
AAHOA CONVENTION & TRADE SHOW FEATURES INSPIRATIONAL SPEAKERS – APRIL 2017
The magnificent City of San Antonio…..founded in 1720 and completed in 1782…. Mission San Jose is the largest of the city’s 5 missions, and still an active Parish shares early April national ‘spot light’. This year from April 11 – 14, the fine City will be the Host for the Asian American Hotel Owner’s Association’s annual convention. AAHOA will feature these well-known ‘inspirational’ speakers in helping the hotel owner become more successful.
Marcus Lemonis Star of highly popular television “The Profit”
Davis Robinson NBA Legend, and Hotel Owner
Laura Ingraham Most listened to female Talk Show Host in America
Grover Norquist President of Americans for Tax Reform
Scott Kelly History Making U.S. Astronaut
ARIZONA’S TOURISM CONTINUES TO GROW – APRIL 2017
As more and more US citizens, and International travelers, come to understand Arizona is much more than it’s beautiful, interesting deserts, the State is becoming a year around mecca for travelers. One of its treasured jewels is Native American history and culture. Arizona is home to 22 sovereign American Indian nations. These Nations guide the state’s distinct spiritual, cultural and economic richness. Phoenix, the State’s Capitol, is home to the incredible Heard Museum which lays claim to one of America’s premiere Indian Nation’s historical and cultural museum’s. On most days one will find tourists both national and international vacationing in Arizona.
AAHOA SPEAKS WITH DUE PRIDE – MARCH 2017 – MARCH 2017
Gleaming from the 28th Year Anniversary of AAHOA at this year’s Convention in San Antonio was a pure message. PRIDE !! The Members of AAHOA today own and/or operate approximately 50% of the hotels in America. The Association that does marvelous activities benefiting both its membership but also our Industry today has 16,650 Members. As for this year’s San Antonio Convention, an approximate attendance of 6,500 was presented with motivational, educational and leadership platforms they will take ‘home’ to improve their businesses and their relationships with staff and guests.
NORTH DAKOTA REVIEWS SPEED INCREASE – MARCH 2017
The North Dakota legislature has introduced a Bill which would raise speed limits on two major Freeways, I-94 land I-29, to 80 MPH. Senator Laffen of Grand Forks comments that Cars have become safer to drive. By raising these limits, the forecast for increased traffic can have a positive influence for hotels along those routes.