Honored to Serve Our Community

For once, Dave Hogg isn’t writing a post about hotels. I’m letting you know that I’m honored to have been asked to be part of the York County Safety Collab. It’s making a real difference. What is this Safety Collab?

For six years, behind the scenes, Aaron Anderson of Logos Academy has orchestrated regular conversations and relationship-building between the Black Ministers Association of York County and the chiefs of many of the 17 police departments that comprise York County, PA law enforcement. Aaron’s work has enabled frank, truthful, two-way discussions that have borne exceptional (and until now nearly top-secret) fruit for our county and its residents. 

Officers have been disciplined and even terminated. Rumors have been squelched before erupting into senseless loss. Body cameras have been acquired for every one of the 400+ officers in the county. When the George Floyd mess exploded across the nation, it was easy to predict that the York County skyline would again burn bright from anxiety and frustration. Why not? It’s happened too many times before. I can remember watching the fires and listening to the machine gun fire from my front yard overlooking York City during the race riots in the ‘60’s. 

But when the George Floyd incident happened, those predictions never materialized. Why? Because a dozen or so men had had the courage to sit down with one another and speak truth, every month for years before. The kind of truth that can be hard and uncomfortable. Because of those honorable men and their frank conversations, tensions were diffused, and an uneasy trust was developing. Now a couple years later, that trust has become more solid, and the group is looking to accomplish more.

A framework had to develop for “more” to happen, and that framework is the York County Safety Collab. It is a 501(c)(3) collective impact organization, created by a partnership of the York County Association of Chiefs of Police and LogosWorks, acting as fiscal sponsor, to catalyze countywide safety efforts through a “Safer Together” initiative. This new organization has a board of directors, on which I’m honored to serve with:

  • Chief George Swartz (Spring Garden)
  • Chief Todd King (Springettsbury)
  • Chief Tim Damon (York Regional)
  • Aaron Anderson, CEO, Logos Academy
  • Pastor Bill Kerney, Executive of the Black Ministers Association of York County
  • Joyce Santiago, Advocate and Finance Director of the York County Housing Group

That all sounds fancy, but it’s still rooted in those monthly discussions over the past six years. So much good is happening! The difference is that now we’ll have resources. We can do effective social media to let folks know, to solicit input, and to build more trust. We’ll also target new tools and training for our 17 police departments, and we can raise the necessary money. 

When crime happens in York County, it often spills into a different law enforcement jurisdiction before an arrest is made. But we don’t have uniform training among departments. Some cuff one way, some the other. Procedures are varied. It’s easy to see how this potentially creates a dangerous circumstance for the individual being apprehended and/or for the officers doing the apprehending. We seek to reduce the danger for both.

Did you know that not all of our departments are trained in mental health recognition or de-escalation? Did you know that it takes York County DNA tests 8-12 months for results, or that identifying the “firearm fingerprints” of spent brass collected from the streets of York County takes two years to return the York County DA’s office any lab results at all? How can we expect the best policing county-wide when the departments lack these basic resources?

What do I really love about the York County Safety Collab? I love that every idea we’ll put forward is first discussed and thoroughly vetted with community groups. We’re not rushing off after Rambo ideas; we want to implement concrete improvements that are mutually beneficial. We’re truly looking to improve the law enforcement experience and its effectiveness for every citizen of the County. 

I also love that we are blessed with police chiefs who truly care about doing policing the right way, for the good of all they serve and protect. In so many communities this Collab would not be possible, because the chiefs and/or the district attorneys don’t have the right hearts. Ours do. Oh my goodness, that makes such a difference! Without the right hearts, the conversations started years ago that made – and still make – this effort possible would never have begun.

It’s amazing how, when you’re willing to have tough conversations, folks of extremely diverse backgrounds can coalesce around ideas and actions to make the lives of all of our 400,000+ county residents better. Heck, what we’re doing here in York County may become a “best practice” for positive change nationwide, but now I’m getting ahead of myself. 

It’s worth repeating: I’m honored to serve.

David Hogg, Springwood Hospitality

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Intelligently Digest Hotel Industry News

Today’s Central Penn Business Journal featured THIS ARTICLE by reporter Stacy Wescoe, which painted a grim recovery picture for the Pennsylvania hotel industry. Ms. Wescoe reported accurately on the overall state of the industry in the commonwealth. What she missed was the wide variability among submarkets and hotel types within Pennsylvania. To be fair, CPBJ’s abbreviated format does not allow space for this analysis, so I’ll provide it here. 

Springwood’s Springhill Suites by Marriott is slated to open August 2022 in Cumberland County, Pennsylvania’s fastest-growing county over the past decade.

The article says, “Nationally hotel business travel revenue is expected to be down 23% compared to 2019.” True. Q1 of 2022 saw significant impacts on business travel from the Omicron variant of Covid. Since then, corporate travel has been improving at an accelerating rate. Yet corporate travel in Q4 2022 may still be off its 2019 pace. Why? 

A large segment of business travel consists of shows, conventions, and large corporate gatherings, which occur in full-service hotels with large meeting facilities. Most such hotels are located in international gateway markets such as Philly and Pittsburgh, and to a lesser extent, hotels such as Hilton Harrisburg and Hershey Lodge come to mind in central PA. That large group business typically books one to two years in advance, so it won’t hit full stride until after 2023. 

Pandemic mindset is causing other corporate travel to restart cautiously, with one major exception. The logistics industry is enjoying a historic boom, which is fueling record room-night demand in locations where distribution is a significant economic driver. Most of Springwood’s hotels are located in markets heavily influenced by logistics, and we expect all of those to post record revenue in 2022. 

The CPBJ article also correctly stated that “leisure travel is expected to return to pre-pandemic levels this year.” Buoyed by a post-pandemic boom, the weddings, funerals, and class reunions that were delayed during Covid are now booking Thursdays through Sundays at every venue that will host them, and those guests need a place to stay. 

A larger leisure driver this year is the pandemic cabin fever that has influenced declining mental health over the past two years. Folks are done with it, and they’re flocking to where they can enjoy themselves. Price seems to be less important to them than it was in 2019. 

Exhibit A for leisure travel is Hershey, PA. Omicron suppressed the Hershey market in Q1 2022, but its outlook for the remainder of the year is brilliant. Think about it. For leisure travel “to return to pre-pandemic levels this year,” the remainder of 2022 must EXCEED 2019 figures. That’s exactly what we see from April results and from advance reservations. Both of our hotels in Hershey will likely experience record revenue in calendar year 2022.

If you’ve read this far, then you care about understanding the subtleties of the hospitality market. Remember this when folks cite broad industry averages. That reminds me of the tale of the fellow who placed one hand on a hot stove and the other in the freezer. On average, he was comfortable. There’s often more to the story, and it pays to look more closely.

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Hilton Names Springwood Hospitality’s Home2 Suites Martinsburg #1 in the World

York, PA Apr 8, 2022

Springwood Hospitality announced today that its Home2 Suites by Hilton Martinsburg, WV has earned Hilton’s coveted 2022 Connie Award, marking this hotel as #1 in the world among the Home2 Suites brand as measured by Hilton’s scoring of quality, guest satisfaction and experience, and commercial metrics.

“Connie” Award Winner, named after Conrad Hilton, founder of Hilton Hotels Corporation, is awarded to “the best of the best” hotels within each brand in the Hilton family of brands. Based on the year-end Quality Performance Balanced Scorecard and service rankings, the winning hotel is honored as a “Connie” Award winner.

Recently Springwood Hospitality has focused heavily on the Home2 Suites by Hilton brand. Springwood affiliates have opened eight, new Home2 Suites by Hilton hotels in four states over the past six years. 

“So far every Home2 Suites we’ve opened has been successful for the brand, for our guests, and for our investors,” says David Hogg, Springwood’s Development Coordinator and founder.

“That’s significant, because four of these hotels opened during the pandemic. Home2 Suites seems to be the brand that performed the best during Covid-19. The market share it gained then seems to be holding up well in the post-pandemic recovery,” Hogg said.

Home2 Suites, part of Hilton’s All-Suites portfolio is now the #1 brand in the US hotel industry, with more hotels under construction in the United States than any other hotel brand. Read more about Home2 Suites by Hilton at www.home2suites.com and www.news.home2suites.com.

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About Springwood Hospitality

Springwood Hospitality is a York, PA based hotel development and management company, which exclusively develops Hilton and Marriott brands. It has opened 19 Hotels over four states over the past 12 years, and currently has 11 hotels in its management portfolio. It will celebrate its second 2022 hotel opening in August, and it has four more hotels in its active development pipeline. Springwood has won more development awards from Hilton and Marriott than any other Pennsylvania-based company; it has also been honored with numerous brand awards for management and guest service excellence. Springwood raises its development equity from a loyal and growing group of high net worth investors, looking to diversify their portfolios by adding positions in quality, privately-held hotels. Find out more about career opportunities at Springwood HERE.

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Springwood’s award-winning Home2 Suites by Hilton Martinsburg, WV, with outdoor gathering areas.

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About Home2 Suites by HiltonHome2 Suites by Hilton, one of the fastest-growing brands in Hilton’s history, is a mid-tier, all-suite, award-winning extended-stay hotel concept designed to offer stylish accommodations with flexible guestroom configurations and inspired amenities for the cost-conscious guest. With a commitment to environmentally friendly products and hotel operations, Home2 Suites offers complimentary breakfast selections with hundreds of combinations; innovative and customizable guestroom designs; laundry and fitness areas; complimentary WiFi; multiple outdoor spaces; 24-hour business centers; expansive community spaces; and pet-friendly environments. Home2 Suites by Hilton has 395 hotels with 455 in the pipeline. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount that can’t be found anywhere else, free standard WiFi, and digital amenities like digital check-in with room selection and Digital Key (select locations), available exclusively through the industry-leading Hilton Honors mobile app. Connect with Home2 Suites on Facebook, Twitter, LinkedIn, and Instagram.

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Justin Shelton Named by Hilton to the Home2 Suites Owners Advisory Council

York, PA  Mar 21, 2022

Springwood Hospitality announced today that Justin Shelton is joining the Owner Advisory Council for Home2 Suites by Hilton, part of Hilton’s All-Suites portfolio. Shelton is President of Springwood, an award-winning, York, PA based hotel development and management company, which works exclusively with Hilton and Marriott branded products. 

Springwood’s Home2 Suites Martinsburg, WV, with its outdoor gathering areas.

The Owner Advisory Council, hand-selected by Hilton from among the most successful and influential franchisees for each brand, serves an important role guiding and advising Hilton brand teams on strategy and deployment. 

Shelton served five years on the Tru by Hilton Owner Advisory Council, starting with that brand’s inception in 2017. Springwood opened two of the first six Tru by Hilton hotels in the world, in Lancaster, PA and in York, PA. Shelton made significant contributions to the direction of that new brand during his tenure on the Council.

Home2 Suites is now the #1 brand in the US hotel industry, with more hotels under construction than any other hotel brand in the country. Springwood affiliates have opened eight Home2 Suites by Hilton hotels in four states over the past six years.

“So far every Home2 Suites we’ve opened has been successful for the brand, for our guests, and for our investors,” says David Hogg, Springwood’s Development Coordinator and founder. “I attribute that success to our team of hotel professionals, led by Justin, who serve our guests every day with professionalism and a warm smile. We’re in the hospitality business, not the hotel business.”

Read more about Home2 Suites by Hilton at www.home2suites.com and www.news.home2suites.com

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About Springwood Hospitality

Springwood Hospitality is a York, PA based hotel development and management company, which exclusively develops Hilton and Marriott brands. It has opened 19 Hotels over four states over the past 12 years, and currently has 11 hotels in its management portfolio. It will celebrate its second 2022 hotel opening in August, and it has four more hotels in its active development pipeline. Springwood has won more development awards from Hilton and Marriott than any other Pennsylvania-based company; it has also been honored with numerous brand awards for management and guest service excellence. Springwood raises its development equity from a loyal and growing group of high net worth investors, looking to diversify their portfolios by adding positions in quality, privately-held hotels. Find out more about career opportunities at Springwood HERE.

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About Home2 Suites by Hilton

Home2 Suites by Hilton, one of the fastest-growing brands in Hilton’s history, is a mid-tier, all-suite, award-winning extended-stay hotel concept designed to offer stylish accommodations with flexible guestroom configurations and inspired amenities for the cost-conscious guest. With a commitment to environmentally friendly products and hotel operations, Home2 Suites offers complimentary breakfast selections with hundreds of combinations; innovative and customizable guestroom designs; laundry and fitness areas; complimentary WiFi; multiple outdoor spaces; 24-hour business centers; expansive community spaces; and pet-friendly environments. Home2 Suites by Hilton has 395 hotels with 455 in the pipeline. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount that can’t be found anywhere else, free standard WiFi, and digital amenities like digital check-in with room selection and Digital Key (select locations), available exclusively through the industry-leading Hilton Honors mobile app. Connect with Home2 Suites on Facebook, Twitter, LinkedIn, and Instagram.

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CBRE Forecasts Continued Hotel Performance Recovery in 2022

By the staff of LODGING  – March 17, 2022

Dallas—CBRE Hotels Research has raised its forecast for 2022 average daily rate (ADR), occupancy, and revenue per available room (RevPAR) to reflect the stronger-than-expected fundamental performance in the fourth quarter. Other factors contributing to the improvement include below-average supply growth, strong domestic leisure trends, the resumption of inbound international travel, and a predicted return to office later this year. CBRE made the changes despite heightened uncertainty and increasingly limited visibility due to geopolitical risks and inflationary pressure.

CBRE now forecasts RevPAR to reach 2019 nominal levels by Q3 2022 under CBRE’s base case scenario, rather than in Q3 2023, as previously forecast.

RevPAR in December 2021 exceeded 2019’s levels for the first time since the pandemic began. This strength has not held into this year’s first quarter. January saw a pullback, with RevPAR coming in 21.7 percent below 2019, and year-to-date trends have remained somewhat muted. The pullback is likely due to the shift from the leisure-centric holiday season to the business-driven first quarter along with heightened geopolitical and inflation risks.

According to CBRE Hotels Research’s December 2021 edition of its Hotel Horizons report, ADR reached 2019 nominal levels in last year’s third quarter. CBRE expects that ADR will once again exceed 2019’s levels following a pause this quarter. Higher rates will be driven by a recovery in higher-rated, inbound international travel, the resumption of more traditional business travel, labor market tightness, and higher overall inflation. U.S. inflation CPI was 6.7 percent year-over-year in Q4 2021 and hit 7.9 percent in February 2022, according to the Bureau of Labor Statistics. CBRE forecasts that inflation will reach slightly more than 6 percent in 2022 before dropping to around 2 percent in 2023 and after.

“Higher room rates will lead to a quicker return to 2019’s nominal ADR levels,” said Rachael Rothman, CBRE’s head of hotel research and data analytics. “But from a profitability perspective, inflation will be a headwind through higher utilities, supplies, and labor.”

The effects of inflation on ADR won’t be uniform. Bram Gallagher, CBRE senior hotel economist, said, “Historically, most hotels can respond to inflation with price increases, but only luxury hotels have demonstrated that they can exceed the pace of inflation to achieve real gains. Economy hotels have the most difficulty raising prices enough to keep up.”

CBRE expects domestic and drive-to resorts to show strength once again in 2022 as the war in Ukraine and the resurgence of COVID in Asia could persuade wealthier U.S. travelers to prefer domestic destinations closer to home. Elevated gas prices could hurt more budget-minded consumers who frequent interstate hotels.

Longer-term, muted supply growth will mitigate the blow for the hotel industry. High construction-material prices, including lumber, steel, and labor, make the development of most new projects cost prohibitive, limiting the delivery of new rooms over the medium to longer term. CBRE forecasts that supply will increase at a 1.2 percent compound annual growth rate over the next five years, well below the industry’s 1.8 percent long-term historical average.

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Home2 Suites by Hilton Rochester/Greece Opens

Located off of Lexington Avenue, Exit 22 on I-390 – New Hotel, Home2 Suites by Hilton Rochester Greece Welcomes Guests Visiting Rochester/Greece New York; Award-Winning Hotel Concept Brings 119 Suites to Rochester, New York

ROCHESTER, New York – February 24, 2022Home2 Suites by Hilton, part of Hilton’s (NYSE: HLT) All Suites portfolio, announced today its newest property, Home2 Suites by Hilton Rochester Greece.  Ideal for both short term and long-term accommodation needs, the hotel features 119 suites and a range of value, tech-focused and eco-conscious amenities designed for travelers who want to maintain their normal routine.

“Like many industries, the pandemic was especially detrimental to the travel and tourism industry,” said Monica Harnischfeger, Director of Sales for the new hotel.  “We are so excited to finally be getting the doors opened on this beautiful new extended stay hotel!”

Home2 Suites by Hilton Rochester Greece was recently purchased and will be managed by Springwood Hospitality, an award-winning hotel management company headquartered in York, PA.  Home2 Suites by Hilton Rochester Greece offers all-suite accommodations with fully equipped kitchens and modular furniture, providing guests the flexibility to customize their suite to their style and preference. The hotel features complimentary Internet, inviting communal spaces, and trademark Home2 Suites amenities such as Spin2 Cycle, a combined laundry and fitness area, Home2 MKT for grab-and-go items, and the Inspired Table, a complimentary daily breakfast that includes more than 400 potential combinations. Guests can enjoy an indoor saline pool, fire pit and grill area. Home2 Suites by Hilton Rochester/Greece is pet-friendly. 

Minutes from Rochester International Airport, located at 400 Bellwood Drive in Canal Ponds Business Park, Home2 Suites by Hilton Rochester Greece offers guests convenient access to local corporate parks, The Strong Museum, Greece Ridge Mall, and University of Rochester.  The property is centrally located off of Lexington Avenue Exit 22, I-390, accessible to key attraction points in the Rochester Greece market.

“Home2 Suites Rochester Greece is the newest hotel in the western Rochester area by over 10 years,” said Hunter Doran, General Manager for the hotel.  “The product is beautifully appointed, and very accessible to all of the major attraction points with our immediate access to I-390.”

Home2 Suites by Hilton Rochester Greece participates in Hilton’s award-winning customer loyalty program, Hilton Honors. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount, free standard Wi-Fi, as well as digital amenities that are available exclusively through the industry-leading Hilton Honors app, where Honors members can check-in, choose their room, and access their room using a Digital Key. 

There will be a ribbon cutting ceremony for the property to be hosted in early spring.  The team at the hotel is welcoming media tours of the property for media organizations who are interested in visiting this brand new extended stay hotel.  Media tours can be arranged by contacting the hotel sales department directly. 

For more information or to make a reservation, visit www.greecerochester.home2suitesbyhilton.com, or call 585-432-1010. Read more about Home2 Suites by Hilton at www.home2suites.com and www.news.home2suites.com.

About Home2 Suites by Hilton Home2 Suites by Hilton, one of the fastest-growing brands in Hilton’s history, is a mid-tier, all-suite, award-winning extended-stay hotel concept designed to offer stylish accommodations with flexible guestroom configurations and inspired amenities for the cost-conscious guest. With a commitment to environmentally friendly products and hotel operations, Home2 Suites offers complimentary breakfast selections with hundreds of combinations; innovative and customizable guestroom designs; laundry and fitness areas; complimentary WiFi; multiple outdoor spaces; 24-hour business centers; expansive community spaces; and pet-friendly environments. Home2 Suites by Hilton has 395 hotels with 455 in the pipeline. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount that can’t be found anywhere else, free standard WiFi, and digital amenities like digital check-in with room selection and Digital Key (select locations), available exclusively through the industry-leading Hilton Honors mobile app.

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2022 Tourism Projected to Top Pre-Pandemic Levels

From Business Traveler magazine FEBRUARY 14, 2022 BY HANNAH BRANDLER

The US travel and tourism industry is forecast to surpass pre-pandemic levels this year, according to projections from the World Travel and Tourism Council.

The sector’s contribution to the US GDP is predicted to finish the year at almost $2 trillion, a rise of 6.2 percent over the $1.87 trillion travel and tourism posted in 2019, according to WTTC’s latest modeling forecasts.

An analysis by WTTC and Oxford Economics found that spending on domestic travel and tourism in the US this year is projected to outperform pre-pandemic levels by 11.3 percent, reach over $1.1 trillion.

The forecast also projects spending by international travelers in the US could reach nearly $155 billion in 2022, a growth of $113 billion over last year, but still 14 percent below 2019 levels.

Travel and tourism employment could also surpass pre-pandemic levels, reaching nearly 16.8 million jobs – above pre-pandemic levels by almost 200,000 jobs.

However the WTTC warns that its forecast is dependent on governments easing global travel restrictions and the continuing rollout of the vaccine and booster programs around the world.

“Our latest forecast shows the recovery significantly picking up this year as infection rates subside and travelers continue benefiting from the protection offered by the vaccine and boosters,” said Julia Simpson, president and CEO of WTTC.

“As travel restrictions ease and consumer confidence returns, we expect a welcome release of pent-up travel and tourism demand. That, together with what we hope will be a strong consumer-led economic recovery, creates a positive outlook for the sector.”

In 2019 the travel and tourism sector generated nearly $9.2 trillion for the global economy, but the onset of the COVID-19 pandemic slashed that in half, with 2020 posting a loss of nearly $4.5 trillion, a drop of 49.1 percent.

Recent research by WTTC shows that the sector could grow to $8.6 trillion this year, just 6.4 percent behind pre-pandemic levels.

wttc.org

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Springwood’s Home2 Suites Hotels Feast on Hilton Awards

Once per quarter, Hilton announces awards for hotels in each brand that excel in the areas guests notice the most:

This quarter 40% of the award-winning Home2 Suites in North America were Springwood properties. We’re so proud of our amazing folks who make results like this happen for our guests every day!

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July 2021: Leisure Travel Roars Back

People are tired of lockdowns. It’s clear from looking at Springwood’s July 2021 room revenues among its hotels open a year or more on July 1, 2019. Looking at room revenue in that set:

  • Three quarters of these hotels posted July 2021 revenue better than that of July 2019
  • Every property in the set came in at 97% or more of setting a new July revenue record. One actually beat its previous July record.

What does this foretell for the future? We’re through making predictions until Covid-19 is vanquished, but our investors are certainly enjoying life at the moment.

Commercial travel is gradually recovering. If that continues (and if there are no further lockdowns), we look forward to a profitable few years ahead.

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Pent-Up Demand – Squared – This July 4th Weekend

In a Wall Street Journal article today, a University of Central Florida economist described the pandemic-recovery tourism demand this way: “What we have is pent-up demand squared. You have this traditional concept of pent-up demand, but it’s coupled with the fact that people were literally pent-up in their homes. Those two types of pent-up demand are being unleashed.”

Pent-up demand squared. It’s a fascinating construct that helps explain why Springwood’s portfolio-wide revenue last month beat June 2019 revenue by a whopping 25%, yet our room count only grew by 11% over the same period. And the demand is getting stronger as we look at forward reservations for July and August.

The Journal article goes on to describe, “The scene unfolding on the ground is akin to what might happen if every guest at a giant wedding showed up days early.” This is happening against a backdrop of a severe labor shortage.

The article goes on to say, “Hotels with staffing gaps are having to make tricky decisions: Sell as many rooms as possible and figure things out on the fly, or purposely drop occupancy to preserve quality – and avoid bad reviews.” Springwood is aware of hotels in our markets that are shutting down entire floors because there is simply no one to clean the rooms.

The strangest 16 months in the history of the hospitality industry are quickly turning into the strangest 18 months… It’s a credit to the amazing Springwood team that we’ve missed very few opportunities to sell rooms due to lack of labor.

When you travel this summer, please tip your housekeeper. They made the decision to show up to clean your room, while some of their friends opted to stay home. These folks – the ones who show up to serve you – are champions who should be celebrated this Fourth of July as an important part of what makes America great.

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