-"The mission of the California Lodging Industry Association is to promote, protect and advance the interests of lodging owners and their management teams statewide, and to provide a network of resources to support member efficiency, profitability and professionalism.”-

June 14, 2023

Hotels Are Increasingly a Preferred Asset Class for Active Investors

by Romy Bhojwani

CoStar Analytics

Hotels are evolving into a preferred asset class for investors based on transaction volume trends across other commercial real estate asset classes. Specifically, hotel sales volume growth has doubled office sales growth in recent months, compared to the long-term historical average.

Annual hotel transaction volume as a percentage of office transaction volume has averaged 26% from 2006 through 2019. In 2022, hotel transaction volume spring-boarded to 53% of office transaction volume, the highest level going back 17 years. Year to date through April 2023, hotel transaction volume at $12.2 billion is 45% of office transaction volume, materially higher than the long-term average of 26%.

Hotel operators scrambling to fill job openings as summer travel begins.

They're hiking wages, offering greater work flexibility and expanding benefits to attract more workers.

By KEVIN SMITH | kvsmith@scng.com

San Gabriel Valley Tribune

Against a backdrop of high inflation, rising wages and summer travel, more hotel operators say they are struggling to find workers.

A new survey from the American Hotel & Lodging Association found 82% of U.S. hotel operators are experiencing staffing shortages, with 26% saying the problem has impacted their hotel’s ability to operate.

The most critical staffing need is housekeeping, the survey said, with 40% of respondents ranking it as their top hiring challenge. That was followed by front desk clerks (28%), maintenance workers (13%), culinary employees (13.1%) and general managers (8%).

The hiring malaise has prompted hotel operators to offer a variety of incentives to attract more workers.

Seventy-five percent of hotel operators surveyed said they’re increasing wages, while 64% are offering greater flexibility with hours and 36% are expanding benefits. But despite the perks, 87% say they’re still unable to fill all of their openings.

Taylor Swift Tour Brings Hotel Demand on Par With 'Triple Super Bowl' for Some Cities

By Trevor Simpson

Hotel News Now

Taylor Swift is gaining a significant amount of “Swifties” with her North American tour this summer in a demographic that she couldn’t see even in her wildest dreams: hotel general managers.

When the clock struck “Midnights” and Swift announced her “Eras Tour” in November 2022, hoteliers in the cities on the list rushed to adjust rates and prepare for the influx of bookings sure to come. The impact was instant.

General managers said hotel bookings spiked immediately following the tour announcement. Preparing for it was “pure chaos from a booking standpoint,” said Brendan Abraham, general manager of Bellyard, West Midtown Atlanta, a Tribute Portfolio Hotel.

“As soon as [the tour] was announced, it was an immediate effect. There wasn’t much of a ramp-up period; it went from 50% just to sold out overnight,” he said.

Derek Sumpter, general manager of Reverb by Hard Rock Downtown Atlanta, said rooms at his property sold out for the whole three-day period within two hours of the tour being announced. His property simultaneously jumped on increasing rates appropriately, basing it upon past citywide concert events.

8 non-negotiables for a profitable hotel distribution strategy

In today’s digital age, effective hotel distribution and pricing strategies are crucial for maximizing revenue and staying competitive. With the rise of online travel sales and the influence of e-commerce and review sites, accommodation providers must adapt to the evolving distribution landscape.

This article highlights the non-negotiable elements that form the foundation of a profitable hotel distribution strategy.

1. Hotel channel manager | online visibility

One of the most important tools for hoteliers to succeed in a hyper-competitive-looking environment is to maximize their reach and visibility online while keeping costs low. A Hotel Channel Manager is an essential tool that not only helps manage multiple channels but also provides valuable data for informed distribution decisions.

Most cloud-based channel managers are integrated with a hotel’s property management system (PMS), making the booking process even more seamless. The channel manager picks reservation and rates updates made in the PMS and immediately distributes them to the connected channel.