In the pop-up talk after the Africa Hospitality Investment Forum (2022), Hala Matar Choufany shares her main key takeaways.
Over the past decade, the GCC region has transformed from a business destination to an experiential one, evidenced by an increase in international arrivals, private investments and government visions, initiatives and developments. Hala Matar Choufany, president for HVS Middle East, Africa and South Asia, and managing partner of HVS Dubai, outlines the market developments and what’s on the horizon.
This report highlights the key trends in the Indian hospitality industry in 2022 along with the sector performance metrics, brand signings, and brand openings during the year. It also provides our outlook for the sector for 2023.
European hotel values rise 3% in 2022 in what proved a mixed year for the sector. Read more in our latest European Hotel Valuation Index.
Las Vegas’s 38.8 million total visitors in 2022 was roughly 91.3% of 2019 levels and only 4.1 million below the peak number of visitors in 2016. Gaming revenue for Clark County in 2022 was $12.8 billion, a new record for the market. Statistics from the Las Vegas Convention and Visitors Authority reflect 43.6 million total occupied room nights for Las Vegas in 2022, 20.6% more than in 2021. This article examines the latest trends and developments relevant to the Las Vegas hospitality market.
This article introduces KPIs that are considered vital in understanding a hotel asset’s performance by considering how efficiently and effectively space is utilised within the hotel operation.
The Niagara Falls lodging market is rapidly recovering after the devastating pandemic-induced RevPAR decline of 72.9% in 2020. The market-wide RevPAR has reached 97% of the 2019 level in 2022 and is projected to reach 112% in 2023. ADR growth is leading the recovery.
The Canadian hotel industry roared back in 2022! ADR was 10% higher than 2019 in spite of occupancy remaining 6% lower, resulting in a 3.5% RevPAR lift from pre COVID market performance.
More good news for hoteliers; when RevPAR growth emanates from ADR, NOI’s are healthier as are hotel values.
Fastest bounce back? Hotels less than 75 rooms in tertiary markets in Atlantic Canada. PEI and Newfoundland were the Provincial leaders with pre Covid RevPAR increases of 16.7% and 16.1% respectively.
Although current capital market terms are putting downward pressure on values, the full impact of these conditions is tempered by the expectation of a return to more favorable terms in the relatively near future. The opportunity to refinance in the near-to-mid term provides an equity investor with a return of a portion of their initial investment, which supports a lower blended discount rate—and higher value—than indicated by a weighted average cost of capital based on current mortgage terms.
Given the high average rates achieved over the last quarter, Nationwide RevPAR is now onpar with 2019 through the month of September. Average rates need to be held firmly to continue onpar as Business Travel and Meeting and Group are not back yet.