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.