“Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”
—Winston Churchill

One common question from the investment community to us here at STR is: “So, how long will this ride last?” In other words, given the favorable supply and demand fundamentals for the U.S. hotel industry, how long will we see positive average-daily-rate and revenue-per-available-room growth?

A large part of the global tourism industry relies on foreign travelers spending their currencies in countries other than their own. This article looks at the fluctuation of currency exchange rates and their impact on the change in average daily rate.

Room rates obviously change all the time, but in addition the changes in the exchange rate can make destinations more or less attractive, depending on the country (and currency) of origin of the traveler. As the European debt crisis and the debt downgrade of the U.S. influenced the headlines of the financial markets, they also impacted the interplay of the currencies.

“It pours, man, it pours.”
—Albert Hammond

And pour it did. ALIS 2012 moved back to its old hometown this year into its new digs at L.A. LIVE in downtown Los Angeles. Conference organizer Jim Burba kindly requested that anyone in town to attend buy a conference badge lest she/he be shut out of the conference, and in a new twist, out of the hotel venue at the JW Marriott.

One indicator we watch to judge the health of the industry and the speed of a recovery is the average-daily-rate premium luxury hotels command over upper-upscale hotels. 

Traditionally, there is a clear bifurcation between hotels in different scales—partially based on amenities, partially based on service, partially, of course, based on price. This price difference is not static and fluctuates with the macroeconomic conditions. As luxury hotels posted higher occupancies during the mid 2000s, we saw an increase in their rate premium above the upper-upscale hotel ADR. During the downturn, when demand decreased, luxury hotels discounted their rooms, oftentimes at a much faster pace (speaking about dollars, not percentages) than upper-upscale hotels, thereby decreasing the ADR premium. 

This article examines the trends that shaped and will shape the U.S. hotel industry by examining last year’s performance and looking at the major issues facing the U.S. hotel industry.

Jan Freitag ... Read More 0 comments

Wednesday, 04 January 2012 The trends in STR’s 2011 Trend Reports Posted by Jan Freitag at 7:57 AM Now that 2011 has come to a close, we at STR, once again, are looking at the data that underlies our Trend Reports. Virtually all new developments and feasibility studies require—at some point or another—a look at a self-selected competitive set to aid consultants and owners with the understanding of local-market conditions. This article shows a snapshot of the most and least requested markets, cities, ZIP codes and brands, among other tidbits of Trend trivia.  Jan Freitag ... Read More 1 comments 1 2 3 Follow Us Most Popular Views Comments Emails UPDATE: Credit-bid decision expected in June Leveraging Pinterest, Instagram for hotels Courtyard by Marriott lobbies for longevity Brand DNA key to Hilton’s new design website Hoteliers disconnected from shaky reality Luxury guests seek authentic hotel stays Hoteliers disconnected from shaky reality UPDATE: Credit-bid decision expected in June Hyatt Regency ‘Green Team’ steers renovation The key to financing is in your own backyard TAB theories unsubstantiated in market Accor’s budget brands sale ‘transformational’ Hyatt addresses top revenue-management issues Cancellations pour in on heels of GSA scandal Group business remains relatively anemic UPDATE: Credit-bid decision expected in June Hyatt realigns in effort to lift performance Hoteliers disconnected from shaky reality HotelNewsNow.com account Log in Join HotelStockIndex.com HotelInvestmentBarometer.com Log in Subscribe Advertise Product Showcase Subscribe Advertise About About Us Contact the Editors Site FAQ Advertising Privacy Policy RSS Twitter Facebook LinkedIn Events Hotel Data Conference HotelNewsNow.com Site Map Hotel Data Presentation Hotel Assets STR + STR Global Data News Industry Analysis News By Segment Hotel Management The Lobby Video Make This Your Home Page   Copyright © 2004-2012 HotelNewsNow.com, a division of Smith Travel Research, Inc. All Rights Reserved.