AH MARCH 2024
Welcome to interactive presentation, created with Publuu. Enjoy the reading!
March 2024 Volume 23 #223
Hotel companies in the news include:
Greenleaf Hospitality, LLC, Southern Hospitality, Noble Investment Group
Clean between the sheets
Smart strategies improve hotel laundry cost-effectiveness
Housing the
nation builders
Hotels angle their marketing efforts to capture business
from infrastructure projects
A story worth repeating
Noble’s Mit Shah discusses investing and history
for Asian Hospitality’s Leadership Series
Contact Matthew Hostetler, Chief Development Officer, [email protected] / redrooffranchising.com
also includes
1 2022 Franchise Survey. 2 STR Average Revenue per Available Room Index based performance for all Affiliate-Owned and Franchised Red Roof hotels open and operating for at least one full year, and all of calendar 2022
with any temporary closures being less than 90 days, 575 hotels for Red Roof Inn and 76 hotels for Red Roof PLUS. 3 The Brand Contribution is the percentage of room revenue generated for the properties through the
Red Roof Inn website, call center, group bookings, National Sales, Global Distribution system (GBS), third party web sites and by RediRewards® members booked directly with Affiliate-Owned and Franchised properties
in the U.S. open and operating for at least one full year, and all of calendar 2022 with any temporary closures being less than 90 days, 575 hotels for Red Roof Inn and 76 hotels for Red Roof PLUS. This is not an of-
fer. No offer or sale of a franchise will be made except by a Franchise Disclosure Document first filed and registered with the applicable authorities. For New York: An offering can only be made by a prospectus filed first
with the Department of Law for the State of New York. Such filing does not constitute approval by the Department of Law. For Minnesota: #F-5824. Red Roof Franchising, LLC, 7815 Walton Pkwy New Albany, Ohio 43054.
© 2024 Red Roof Franchising, LLC
The brand that created the Upscale Economy® segment
$55.00
REVPAR
(INDEX 104.7%)2
OUTSTANDING
BRAND
CONTRIBUTION3
75.8%
$40.79
REVPAR
(INDEX 103.9%)2
OUTSTANDING
BRAND
CONTRIBUTION3
54.7%
THE SECRET TO BECOMING
LODGING INDUSTRY ICONS:
PERFORMANCE
92%
FRANCHISEE
SATISFACTION1
2/8/24 12:17 PM
2/8/24 12:17 PM
Contents
Contents
COVER STORY
20 Housing the nation builders
Hotels angle their marketing efforts to capture
business from infrastructure projects
NEWS
5 Rogers steps down as head of AHLA
The association’s COO Carey is interim president
and CEO, board forming search committee
6 Friends, colleagues mourn slain Alabama
hotelier
AAHOA regional director remembers Pravin Patel
as ‘family-oriented’ and
‘a keen businessman’
8 AHLA: State of the hotel industry strong
entering 2024
Hotels projected to achieve historic wages,
generate record tax revenue this year
Lawsuit alleges STR’s ‘Forward STAR’ program
violates antitrust laws
Plaintiffs say the information exchanged by large
hotel companies allowed them to fix prices in
certain markets
9 Survey: 67 percent of hotels report staffing
shortages
More than 80 percent of hotels are boosting
wages to hire and retain staff
10 CoStar: GOPPAR reached $75.83 for 2023,
up 8.2 percent from 2022
Full-service chains, major markets boosted U.S.
hotel profitability during the year
Survey: Most Americans to maintain or increase
hotel stays in 2024
Inflation hampers hotels and travel businesses'
full potential, survey says
12 AAHOA's HYPE Ownership conference
draws 200 hospitality professionals
The association hosted the "Retro Rendezvous
Reception" at a private classic car museum
14 Southern Hospitality breaks ground on
ESA prototype in Florida
The 124-room property, spanning four stories,
is set to open in early 2025
Peachtree Group closes third DST acquiring
HGI Jackson, Tennessee
Peachtree Group is a top-15 sponsor in the
securitized 1031 exchange marketplace
15 CBRE: Higher rates, stronger demand to
fuel 2024 RevPAR growth
RevPAR for the year is anticipated to exceed
2019 levels by 13.2 percent
LEADERSHIP SERIES
16 A story worth repeating
Noble’s Mit Shah discusses investing and
the history he shares with many for Asian
Hospitality’s Leadership Series
DESIGN
18 Going down to the river
New Cambria in Waco, Texas, is ninth in the
Southwest
PRODUCT FEATURE
26 Clean between the sheets
Smart strategies improve hotel laundry cost-
effectiveness
Gujarati translation of top stories begins on
page 28
On The Cover
The Infrastructure Investment and Jobs Act,
passed in 2021, authorizes $1.2 trillion for
transportation and infrastructure spending
on projects such as this restoration of parts
of the San Luis Reservoir near Patterson,
California. Hotel companies are taking steps
to market themselves to the work crews
employed at such projects funded by the
IIJA. Photo courtesy of the U.S. Bureau of
Reclamation
CONTENTS
ISSUE 223
MARCH 2024
20
COMING
NEXT ISSUE:
MIRAJ PATEL
ASSUMING AAHOA
CHAIRMANSHIP
Contents
Contents
14
12
18
www.asianhospitality.com
33
MARCH 2024 ASIAN HOSPITALITY
16
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The world is literally
falling apart
n August 2007, the I-35W Mississippi River bridge in Minneapolis just fell
down. The collapse killed 13 people and injured nearly 150, and the nation, still
jumpy from the 9/11 attacks, immediately wondered if it was another terror
attack.
But no, this wound was self-inflicted.
The bridge, opened in 1967, simply failed because a thin “gusset plate” connecting
two beams ripped. Officially, that was determined to be a design flaw, but the age
of the bridge highlighted the need for a national infrastructure replacement and
upgrade plan.
At that time I was an editor for a magazine focused on city and county
governments, so for months afterward I was doing stories on the status of the
nation’s roads, bridges, electricity grid, water system and other structures that are
simply vital to everyone in this country.
Long story short, we reported that much of the infrastructure in the U.S.
was outdated, shockingly so in many cases. Still, Congress struggled for
another decade and a half to pass a bill to fund the necessary work. When the
Bipartisan Infrastructure Law passed in 2021 it was welcome news for those
of us who shift nervously in our cars every time we’re stuck on a bridge in
rush hour traffic.
But this month’s cover story is about more than that. The idea that hotels
are pulling business from projects funded by the BIL is why it’s also called the
Infrastructure Investment and Jobs Act, and that has far reaching implications.
One reason it took so long to pass such obviously necessary legislation is because
some people in government equate “government spending” with “government
waste.” I’ve heard the comparison that some people act like when the government
spend money they’re just throwing it into a hole in the ground, but that’s not the
case.
Public money spent flows back into the private sector. Those work crews staying
at your hotels and the companies that employ are proof of that. This should not be
construed as saying that government waste doesn’t exist, but Congress needs to
get over the sticker shock of some spending bills and just concentrate on how that
money makes it’s way back into the hands and bank accounts of taxpayers.
Circle of life, people!
Edward J. Brock, Senior Editor
Follow Asian Hospitality online...
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Editor's Letter
Editor's Letter
www.asianhospitality.com
4 ASIAN HOSPITALITY MARCH 2024
News
News
www.asianhospitality.com
55
MARCH 2024 ASIAN HOSPITALITY
he longtime head of the American
Hotel & Lodging Association,
William “Chip” Rogers, stepped
down from the position in March “to
pursue other professional interests,”
according to AHLA. The AHLA board
of directors appointed Kevin Carey,
AHLA’s senior executive vice president
and COO, as interim president and CEO
and is forming a committee to identify
potential replacements for Rogers and
will be retaining an executive search
firm.
AHLA said in a statement that more
information on its search for Rogers’
replacement will be available on its
website in the coming weeks. It did not
release any more information about why
Rogers is stepping down.
“We have been able to build one of
America’s most effective associations
over the last five years,” said Rogers
in the statement. “As I move on to my
next chapter, I am truly thankful for the
opportunity I had to lead this incredible
team and work alongside the industry's
best leaders.”
Kevin Jacobs, Hilton’s CFO and
president of global development who
was appointed chairman of AHLA’s
board in January, thanked Rogers for his
service.
“We now begin a search for a new
CEO to lead AHLA during this exciting
time for both our industry and our
association,” Jacobs said. “The board
and I look forward to working with the
next CEO to advance our mission well
into the future.”
Prior to taking the president and CEO
position at AHLA, Rogers was AAHOA’s
president and CEO from 2014 to 2019.
He served as a Georgia state senator
from 2002 to 2012 and was president
and CEO for Rogers Communications in
Woodstock, Georgia, from 1994 to 2011,
according to his LinkedIn.com page.
Carey has served as AHLA’s COO
since 2017 and has led numerous AHLA
initiatives that increased the association’s
growth and expansion, according to a
statement. These efforts include the
association’s strategic plan development,
dues model changes and a nearly 60
percent increase in revenue through
membership growth, mergers, and
partnerships. Prior to joining AHLA,
Carey spent more than 25 years with
American Express, where he led global
business groups across the company.
“As we begin our search for a
permanent AHLA president & CEO,
the association is in capable hands,”
Jacobs said. “Kevin’s deep knowledge of
AHLA’s operations and his relationships
with hospitality stakeholders
throughout the industry make him
the right leader for AHLA during this
transition. The board of directors and
I look forward to working with Kevin
as AHLA continues to deliver highly
effective advocacy, communications and
member services for the industry.”
Carey thanked the board for the
opportunity.
“I look forward to working with my
team members to continue doing what
AHLA does best: serving members and
achieving responsible public policy
outcomes for hoteliers that advance this
outstanding industry,” said Carey.
AAHOA welcomes Carey
AAHOA released a statement welcoming
Carey to the interim position.
“We look forward to working with
Mr. Carey to continue strengthening the
hospitality industry,” said Laura Lee Blake,
AAHOA president and CEO. “Together,
AAHOA and AHLA can continue on a path
of advocacy and progress to address the
challenges facing the hospitality sector and
ensure a stronger future moving forward.”
The two associations have not always
been on the same side of certain issues.
For example, AAHOA supports proposed
legislation in New Jersey that would make
changes to the New Jersey Franchise
Practices Act that could benefit hotel
franchisees, AAHOA said previously.
AHLA, and specifically Rogers, opposed
the bill, saying it threatened the hotel
franchise model.
Bharat Patel, AAHOA chairman, said he
anticipates “a positive and constructive
partnership to benefit our members and
the industry at large.”
“Through collaboration, we can proactively
address and shape the industry's growth
and achieve new milestones for our
members moving forward,” Patel said.
Rogers steps down as head
of AHLA
The association’s COO Carey is interim president and CEO, board forming search committee
William “Chip” Rogers, left, is stepping down as president and CEO of the American Hotel & Lodging
Association “to pursue other professional interests,” according to AHLA. Kevin Carey, AHLA’s senior
executive vice president and COO, has been appointed interim president and CEO until the board of
directors finds a replacement.
News
News
www.asianhospitality.com
6 ASIAN HOSPITALITY MARCH 2024
ravin Raojibhai Patel, Alabama
hotelier who was gunned down Feb.
8 after an altercation at his hotel, is
being remembered by leaders at AAHOA
as a family man and a good businessman.
AAHOA also is condemning the killing
as a senseless act of violence.
William Jeremy Moore, 34, was
arrested in connection with the shooting
of Patel, 76, originally from the village of
Anand in Gujarat, India, according to the
Sheffield, Alabama, Police Department.
Moore came to the Hilllcrest Motel that
Patel owned and tried to get a room
when an altercation started between the
two men.
“That is when Mr. Moore pulled a
handgun and shot Mr. Patel,” Sheffield
Police Chief Ricky Terry said in
the report. “Mr. Moore was quickly
apprehended by Sheffield Police on 13th
Avenue when he was trying to break into
an abandoned house. When searching
Mr. Moore, the murder weapon was
found in his possession.”
Moore is being held in the Sheffield
City Jail until a warrant is issued, Terry
said, and he will then be transported to
the Colbert County Jail. Sanjay Patel,
AAHOA’s Alabama regional director,
said in a statement that Pravin Patel
spent more than four decades in the
town of Sheffield, owning and operating
the same motel.
“He was a very family-oriented
person, jolly, and a keen businessman,”
Sanjay said. “Everyone in town knew him
as a familiar face in the community after
being there 40-plus years, and the family
was well-known in the community for
being genuine and caring.”
Bharat Patel, AAHOA chairman,
condemned the killing.
“Senseless acts of violence have
no place in our communities, and
our hearts are breaking for Pravin’s
family, including his wife, children, and
grandchildren,” he said. “No family
should have to endure what Pravin’s
family is going through, and we send our
condolences to everyone who knew and
loved him.”
“The loss of a loved one under such
circumstances is an unimaginable
tragedy that no family should ever
have to endure,” said Laura Lee Blake,
AAHOA president and CEO. “As a
long-standing businessman in his
community, Pravin was known for his
kindness and his beautiful family. We
pray for great comfort and strength
during this impossibly difficult time
for those who knew and loved him, and
for his legacy of service and hospitality
to continue for many generations to
come.”
A funeral service was held for Patel at
Morrison Funeral Home in Tuscumbia,
Alabama, on Feb. 12, according to Patel’s
obituary. He is survived by his wife,
Renukaben Patel, two children and
other family. His parents, Raojibhai and
Maniben Patel, and another brother,
Hasmukh Patel, previously passed away.
In 2021, Cleveland, Mississippi,
hotelier Yogesh Patel was beaten to
death by a guest he had had evicted
from his hotel earlier in the day. In
March of that year, Usha and Dilip
Patel were victims of a shooting in
their Elkton, Maryland, hotel that left
Usha dead and her husband wounded.
Other similar incidents also were
reported that year.
Friends, colleagues mourn
slain Alabama hotelier
AAHOA regional director remembers Pravin Patel as ‘family-oriented’ and
‘a keen businessman’
Choice Hotels International continued its efforts to acquire Wyndham Hotels & Resorts in January by
naming eight nominees for the Wyndham board of directors. However, the current board said Choice
has not adequately addressed its concerns about the proposed acquisition of the company and the
nominees for the board are meant to rubber stamp the deal.
Sheffield, Alabama, police investigate the Hillcrest Motel where the owner, 76-year-old Pravin Raojibhai
Patel, was gunned down by a man seeking a room.
William Jeremy Moore, 34, was arrested in
connection with the shooting of Patel.
News
News
www.asianhospitality.com
77
MARCH 2024 ASIAN HOSPITALITY
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This advertisement is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. Offering by Franchise Disclosure Document only
where required by law from Sonesta RL Hotels Franchising Inc., 400 Centre St., Newton, MA. ©2024 Sonesta International Hotels Corporation.
Americas Best Value Inn & Suites Elk City
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News
News
www.asianhospitality.com
8 ASIAN HOSPITALITY MARCH 2024
he state of the U.S. hotel industry
is strong going into 2024, according
to American Hotel & Lodging
Association's 2024 State of the Hotel
Industry report. Average hotel occupancy
is expected to reach nearly 63.6 percent in
2024, a slight increase from the 62.9 percent
in 2023 but below the 65.8 percent rate
recorded in 2019. Nominal RevPAR is also
anticipated to rise to $101.82 in 2024, up by 4
percent from 2023 and over 17 percent from
2019.
AHLA projects hotels will pay employees
a record sum of over $123 billion in wages,
salaries, and compensation in 2024,
surpassing $118 billion in 2023 and $102
billion in 2019. Hotels are expected to add
approximately 45,000 employees this year,
while the industry's workforce remains
nearly 225,000 below the almost 2.37 million
employed in 2019, the AHLA report said.
The report, projecting persistent
challenges for hoteliers in the face of
nationwide labor shortages as they
approach 2019 occupancy levels, draws on
data and analysis from Oxford Economics. It
was developed in collaboration with AHLA
Premier Partners: STR, Avendra, Ecolab,
Encore, JLL, Oracle, and Towne Park.
Record high in tax revenues
Hotels are projected to generate
approximately $54.4 billion in state and local
tax revenue in 2024, up from about $52.4
billion in 2023 and $43.4 billion in 2019, the
report added. The 2024 projection includes
over $26 billion in lodging-specific taxes.
Hotels are also expected to contribute
around $29 billion in federal tax revenue in
2024, compared to about $27.8 billion in 2023
and $24.3 billion in 2019.
“The expectation of higher occupancy
rates and record amounts of wages and
tax revenue point to a strong future,” said
Chip Rogers, AHLA’s president and CEO.
“But hoteliers face continued challenges,
including a nationwide labor shortage,
persistent inflation, high interest rates and
a federal regulatory agenda that’s making
it harder for hoteliers to do business.”
The inflation pace has slowed, but
prices remain high for numerous
hospitality-related products. AHLA
Premier Partner Avendra forecasts
sustained single-digit inflation through at
least the first two quarters of 2024 across
various items. Furthermore, nominal hotel
guest spending on lodging, transportation,
food and beverage, retail, and other
expenses is projected to reach $758.6
billion in 2024, nearly 5 percent higher
than 2023 and almost 24 percent above
2019 levels.
AHLA: State of the hotel industry
strong entering 2024
Hotels projected to achieve historic wages, generate record tax revenue this year
The state of the U.S. hotel industry is strong going
into 2024, according to American Hotel & Lodging
Association's 2024 State of the Hotel Industry
report, with average hotel occupancy expected to
reach nearly 63.6 percent.
A
lawsuit filed in federal court in Wash-
ington state alleges that STR, owned
by commercial real estate information
researcher CoStar Group, along with several
major hotel companies conspired to inflate
luxury hotel rates. The seven individuals named
as plaintiffs in the lawsuit seek to make it a
class-action filing on behalf of every person
who stayed at the defendants’ hotels from Feb-
ruary 2020 until the present for an unspecified
amount.
CoStar and hotel companies including IHG
Hotel & Resorts, Marriott International and
Hyatt Hotels Corp., entered an exchange of
“competitively-sensitive information about their
prices, supply, and future plans” in violation of
the antitrust provisions of the Sherman Act,
according to the lawsuit. STR and most of the
other defendants in the suit did not respond to
requests for comment in time for this article, but
a spokesperson for IHG said the company could
not comment on pending litigation.
The alleged price fixing happened in major
cities including Boston, Chicago, Los Angeles,
New York, San Diego, Denver, Washington, D.C.,
and Seattle. The lawsuit focuses on STR’s “For-
ward STAR” product that was expanded into many
of those markets in April after launching in 17 of
the country’s 25 largest hotel markets, including
Las Vegas, New York City, Los Angeles, Washing-
ton, D.C., Boston and Phoenix.
Forward STAR allows hotel property and port-
folio users to benchmark the next 365 days of
occupancy on the books against the competition
and market.
“The exchange of this information allows
participating hotels to set prices higher than
they would have been absent this agreement to
exchange information,” the lawsuit said. “This is
price fixing in its modern form and is illegal under
the Sherman Act.”
Lawsuit alleges STR’s ‘Forward STAR’
program violates antitrust laws
Plaintiffs say the information exchanged by large hotel
companies allowed them to fix prices in certain markets
A lawsuit filed in federal court alleges that STR,
owned by commercial real estate researcher
CoStar Group, along with several major hotel
companies conspired to inflate luxury hotel
rates in several large city markets.
News
News
www.asianhospitality.com
99
MARCH 2024 ASIAN HOSPITALITY
ore than two-thirds of hotels are
struggling with staffing shortages,
leading hoteliers to offer
increased pay and a variety of incentives
to attract and retain talent, according to a
new survey conducted by the American
Hotel & Lodging Association. In
response, AHLA is calling on Congress
to take action.
Around 82 percent of respondents
have increased wages in the last six
months, reaching a record high average
for hotels in December 2023, according
to the survey. Additionally, 59 percent are
offering greater flexibility with hours,
and 33 percent are expanding benefits.
Despite these efforts, 72 percent said
they are still unable to fill open positions.
Approximately 67 percent of survey
respondents reported a staffing
shortage, with 12 percent describing it
as "severely understaffed," impacting
their operations, the survey said.
Housekeeping emerges as the most
critical need, cited by 48 percent as their
top hiring priority. These figures mark
an improvement from May 2023 when 82
percent reported staffing shortages.
AHLA said respondents to the latest
survey are trying to fill an average of
nine positions per property, a figure
largely consistent with May 2023
but higher than the average of seven
vacancies per property in January 2023.
Historic career opportunities in
hotels
Ongoing staffing challenges are creating
career opportunities for hotel employees,
the survey said. There are more than
70,000 hotel jobs currently open
across the nation, according to Indeed.
Moreover, the Bureau of Labor Statistics
revealed that as of December 2023,
national average hotel wages reached an
all-time high of $23.91 per hour.
According to AHLA, hotel wages
have outpaced general economic wages
since the pandemic, with benefits and
flexibility reaching unprecedented levels.
“The hotel workforce situation is
slowly improving thanks to record-high
average wages and better benefits and
upward mobility than ever before,” said
Chip Rogers, AHLA president and CEO.
“But nationwide labor shortages are
preventing hoteliers from filling tens
of thousands of jobs, and that problem
will weigh heavily on our members
until Congress takes action. We urge
lawmakers to address this urgent issue
by creating an H-2B returning worker
exemption, passing the Asylum Seeker
Work Authorization Act, and passing the
H-2 Improvements to Relieve Employers
Act.”
As of December, the U.S. had 9 million
job openings, but only 6.3 million
unemployed individuals available to
fill them, according to Bureau of Labor
Statistics.
‘Workforce shortage solutions’
AHLA said that Congress can help
hoteliers address workforce shortages by
taking the following actions:
Expanding and streamlining the legal
H-2B guestworker program: The H-2B
program aids independent hotels and
resorts in remote vacation spots to fill
seasonal roles. However, with a yearly
cap of 66,000 visas, it falls short, AHLA
said. Exempting returning workers
from this limit would assist hoteliers
in hiring employees to offer crucial
staffing relief for seasonal small business
hotels, thereby contributing to the post-
pandemic economic recovery.
Cosponsor and pass the Asylum Seeker
Work Authorization Act: A record
number of asylum seekers are currently
housed in hotels across America,
awaiting court dates and adhering to
the legal process. However, existing law
prohibits them from working legally for
at least six months, necessitating reliance
on local government and community
assistance. This bipartisan legislation
aims to assist hotels in addressing critical
staffing shortages by enabling asylum
seekers to begin working as soon as 30
days after applying for asylum.
Cosponsor and pass the H-2
Improvements to Relieve Employers Act:
The bill proposes extending the H-2A/H-
2B labor certification period to three years
and permanently authorizing the waiver
of in-person interviews for returning
workers. The HIRE Act aims to simplify
the process for qualified workers to
obtain jobs in industries facing challenges
in recruiting and retaining sufficient
employees to meet demand.
AHLA's 2024 State of the Hotel
Industry report recently indicated a
robust outlook for the U.S. hotel industry.
Projected average hotel occupancy is
nearly 63.6 percent, a slight increase
from 2023 but below the 2019 rate of 65.8
percent. Nominal RevPAR is expected
to rise to $101.82 in 2024, marking a 4
percent increase from 2023 and over 17
percent from 2019.
Survey: 67 percent of hotels
report staffing shortages
More than 80 percent of hotels are boosting wages to hire and retain staff
More than two-thirds
of hotels are grappling
with staffing shortages,
according to a recent
survey by the American
Hotel & Lodging
Association. This has
prompted hoteliers to
offer increased pay and
various incentives to
attract and retain talent.
News
News
www.asianhospitality.com
10 ASIAN HOSPITALITY MARCH 2024
.S. hotel revenues and profitability
saw an increase in 2023 compared to
2022, with improvements in group
business across the top 25 markets and
upper-scale chains, according to STR's 2023
P&L data. Overall, 14 of the top 25 markets
reported double-digit increases in GOPPAR.
“Total industry revenues and profits
were well beyond 2022 levels as pricing
power continued to outweigh the impact
of softer leisure demand,” said Claudia
Alvarado Cruz, senior analytics manager
at STR. “A lift in corporate demand made
improvements especially notable across the
upper-upscale brands and major markets.
New York City was the shining example
with 47 percent growth in GOPPAR.”
In 2023, GOPPAR reached $75.83, marking
an 8.2 percent increase from 2022. TRevPAR
stood at $211.49, indicating a 9.6 percent rise,
while EBITDA PAR amounted to $53.05, up
7.6 percent from the prior year. Labor costs
notably increased, reaching $71.56, reflecting
a 13.2 percent rise.
“F&B labor costs on a per-occupied-
room basis showed the largest growth of
any department in 2023,” said Alvarado
Cruz. “Year over year, F&B revenues on
the same basis were up 9.1 percent but
remained down compared to 2019 when
adjusted for inflation. Further evidence
of the improvement in group business,
banquet and catering per occupied room
showed an increase of 13 percent this year.”
In September, U.S. hotel profitability
surged with increased corporate demand
and group bookings, aligning with a
rise in labor costs. According to CoStar,
the positive trend aligned with a recent
uptick in U.S. hotel labor costs that
signaled a shift towards a more balanced
business mix and significant growth in
group demand.
CoStar: GOPPAR reached $75.83 for
2023, up 8.2 percent from 2022
Full-service chains, major markets boosted U.S. hotel profitability during the year
GOPPAR reached $75.83
in 2023, marking an 8.2
percent increase from
2022, according to CoStar.
Labor costs increased,
reaching $71.56, reflecting
a 13.2 percent rise.
pproximately 72 percent of Americans are
set to either maintain or increase their hotel
stays in 2024 compared to 2023, according
to a recent survey by American Hotel & Lodging
Association. Over the next four months, around 53
percent plan overnight leisure travel, and 32 percent
anticipate overnight business travel. Moreover, ho-
tels continue to be the preferred lodging choice, with
71 percent of likely business travelers and 50 percent
of likely leisure travelers favoring them.
Despite a positive outlook for hoteliers, the
survey, commissioned by AHLA and conducted by
Morning Consult, found that inflation is preventing
hotels and other travel-related businesses from
reaching their full potential.
Americans favor hotel stays
Approximately 51 percent of respondents plan
overnight travel for a family trip in the next four
months, with 39 percent expressing a likelihood
to stay in a hotel, the survey said. For a romantic
getaway, around 38 percent are likely to travel
overnight, of which 60 percent anticipate staying
in a hotel.
Around 32 percent plan overnight travel for
Spring Break, with 45 percent indicating a likelihood
of staying in a hotel, it added. Of those surveyed, 35
percent prioritize high-speed WiFi as their top tech-
nological amenity when evaluating hotels, while 14
percent consider keyless entry or mobile check-in in
the same regard. The poll surveyed 2,202 U.S. adults
from Jan. 6 to 7.
“These survey results underscore the tremen-
dous potential 2024 holds for hoteliers and hotel
employees,” said Chip Rogers, AHLA president and
CEO. “The year ahead will not be without challenges,
however, and these findings show that inflation is
preventing hotels from reaching their full potential.
Still, hoteliers are optimistic about the year ahead
and excited continue providing excellent services for
guests throughout 2024.”
Over the next four months, 56 percent of respon-
dents are less likely to choose hotels due to inflation,
the AHLA survey revealed. Similarly, 53 percent
express reduced willingness to engage in overnight
travel, while 48 percent are less inclined to opt for air
travel, and 44 percent are disinclined to rent a car, all
citing inflation as a contributing factor.
Survey: Most Americans to maintain or increase hotel stays in 2024
Inflation hampers hotels and travel businesses' full potential, survey says
Hotels remain the preferred lodging choice for
71 percent of likely business travelers and 50
percent of likely leisure travelers, according
to a survey by the American Hotel & Lodging
Association.
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