Monthly Archives: June 2017

Millennials are driving innovation in Hilton’s hotel portfolio. They’ve already overtaken Baby Boomers as the single biggest driver of hotel demand worldwide. FYI individuals born between 1982 and 2004 are considered to be Millennials; these folks are currently aged 13 to 35. They view the world differently.

Their preoccupation with smartphones leads them to put a premium on having fun and gathering with other real humans. As a bonus, having fun with humans makes a good backdrop for selfies. The philosophical shift from the Boomers’ “collecting things” mindset to the Millennials’ “collecting experiences” quest has been very good for the hotel industry. Experiences require travel, and this generation is travelling a lot more than their parents did. Despite the explosion in AirBNB bookings, the hotel industry is quite healthy, thank you.

Hilton is a market leader who has thoroughly researched this phenomenon and created two entirely new hotel brands designed to delight Millennials. Their Home2 Suites brand burst on the scene in 2009 (oops) and is now one of the fastest-growing brands in history. TRU by Hilton is their newest foray into Millennial segmentation. It’s a complete re-think of what a Millennial would like in a hotel, and it is on track to become THE fastest growing brand in the history of hotels. Both brands will disrupt the hotel market.

We’re opening the third TRU by Hilton in the world today, June 30, 2017. One Millennial who viewed these photos told me, “Wow, a Foosball table! I want to stay at a TRU.” That was easy. Some will have pool tables or ping pong tables – we opted for Foosball in our TRU’s. The lobby is designed as THE gathering place for food, for play, for working, or just for hanging out.

The rooms are more compact, but that’s simply because they’ve done away with the traditional big dresser and big soft chair. They’re replaced by a narrower wooden shelf (with wire drawers below) where the 55″ TV is placed, and a comfortable task chair with swinging arm to hold a tablet or a microwave meal. Both are smaller than what they’ve replaced, and that excess space has been squeezed out of the room. There’s no loss of walking space, and no loss of functionality. Genius.

Maybe best of all is the room rates. TRU is positioned in the market below a Hampton Inn & Suites, so guest stays at a TRU will cost less. Yes, it will create problems for LaQuinta, Comfort Inn, Wingate, and others. It will be fun to watch this brand soar.

Simply go to the following link and watch the video to enter the FREE ROOM contest: TRU by Hilton Lancaster, PA

Good luck!

Every Springwood hotel open a full twelve months once again earned the coveted TripAdvisor Certificate of Excellence award. This is one of the most difficult industry awards to earn, because it is the direct result of guest feedback on the massive TripAdvisor interactive website.

It is remarkable that every one of our hotels has been able to achieve this honor from TripAdvisor.com consistently, for several years in a row.

The Certificate of Excellence is awarded annually to hotels that consistently receive Very Good and Excellent reviews. You may have noticed this designation before either on TripAdvisor listings (shown next to a company ranking) or have seen a sticker at one of your favorite local businesses. To get the TripAdvisor Certificate of Excellence Award, businesses must:

1. Maintain Very Good and Excellent reviews (a 4 out of 5 rating)
2. Receive a minimum number of reviews (the exact amount is part of the secret algorithm)
3. Have been on TripAdvisor for at least 12 months

This is a reprint of an article by Jeff Weinstein in Hotels magazine online on 6/7/2017:

HVS’ Hotel Valuation Index (HVI) Overview Report on 38 U.S. markets and the nation was released this week, indicating which market areas are experiencing positive valuation trends and, thus, may present good investment opportunities.

Here is the overview in a nutshell:

• Values in most U.S. markets are expected to remain generally stable for the next three years.
• If you are looking to the market to deliver value appreciation, be prepared to wait eight to 10 years. For the next several years, ROIs will be driven by property related strategies, not by overall market appreciation.
• New supply is not a significant risk in most markets because supply is being absorbed; construction financing is becoming more challenging; and entrepreneurial incentives have been declining for the past couple of years.
• It is still unclear how the current administration’s policies will affect labor availability, interest rates, and corporate taxes, among other variables. These will all influence hotel values.
• Cap rates have increased slightly.
• Seattle, Portland and Denver have more limited potential for value appreciation due to significant new supply.
• Cleveland, Wilmington, Delaware, and other tertiary markets have the potential for the most near-term value appreciation because of a small development pipeline. Houston is also recovering from its valuation decline caused by low oil prices.
• New York is still one of the top-performing markets in the country, showing resilience in demand and occupancy; however, rates and profitability are anticipated to be challenged until 2020. RevPAR is expected to be recovered by then. Large supply increases are getting absorbed and are expected to continue, but it is having a negative impact on rate. Tourist arrivals remain at an all-time high. Values are expected to remain stable. Cap rates remain between 5% and 6%, and in the low single digits for luxury properties.
• Major gateway cities are still very attractive for international buyers.