Category Archives: Dave Hogg

First-Half 2018 Extended-Stay Industry Report

The Highland Group publishes an industry-leading quarterly report on the U.S. extended-stay hotel market, which we follow closely. This year’s second-quarter 2018 version just arrived over the Springwood transom. Highlights from the report are:

  • Record high occupancy
  • Strongest mid-year demand growth since 2010
  • Seventh consecutive quarter with double-digit room revenue increase
  • Fourth consecutive quarter of RevPar growth above 4%
  • Rooms under construction up 8% over the past year
  • Extended-stay hotels continue to absorb record levels of new rooms while maintaining occupancy above their long-term average.

The two-year trend of accelerating supply growth and declining occupancy reversed in 2017, and demand has grown faster than supply for the last four consecutive quarters. After picking up in the second half of 2017, ADR growth moderated over the last six months but is well ahead of inflation.

The exceptionally good extended-stay hotel performance in 2018 is welcome as rooms under construction climb above 50,000. The supply growth rate is accelerating but only incrementally and is short of the most recent peak levels that occurred throughout most of 2009. Recent trends in rising demand and high occupancy indicate extended-stay RevPar growth should continue to exceed general inflation over the next year.

copy-of-home2-suites-by-hilton-york-exterior-1151004Dave’s notes: What the report does not explicitly say is that Home2 Suites by Hilton is the primary driver of these strong numbers. It’s been a long time since a single brand shifted demand for an entire industry, but this powerful Hilton brand has been a game-changer.

That’s why it’s now “the darling” brand (so we’re told), in heavy demand by institutional investors who are – for the moment – specifically targeting the Home2 Suites brand with premium pricing. These trends come and go like the tides, but it’s an interesting phenomenon that seems to be in place as we approach our first package sale next quarter.

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Filed under Dave Hogg, Justin Shelton, Uncategorized

Higher Prices Aren’t Scaring Away Summer Travelers

By: Kate Rogers Published May 08, 2014 FOXBusiness

Americans are welcoming summer vacation this year with open arms after a rough winter, but their gateway is going to cost more than in the past.

New data from travel site Orbitz finds 88% of Americans plan to take a summer vacation this year, up 11% year-over-year. Marita Hudson Thomas, Orbitz public relations director, says the numbers reinforce signs of a recovering economy.

“We had a horrible winter—one of the worst in history. People want to get to summer and the heat and warmth- they are running from the terrible winter.”

Summer travel costs are up this year, according to Orbitz, with airfare up 6% and hotel prices up by 12% across the reports’ top destinations.

But travelers say they are willing to spend more this year to vacation, with 51% saying they’d shell out $2,000 or more for their vacation this summer, versus 44% last year.

Travelers on a budget plan to use their travel rewards to pay for hotels and airfare and are willing to buy food and eat in their hotel rooms to save some cash.

More Americans are traveling to cities this year, Orbitz finds, and while hotel prices are up, travelers can find rooms for under $200 in half of the top 10 destinations. Most travelers plan to hit the road in June and July (71%).

This year, Cancun edged out Orlando as the top destination, which has consistently been in the top spot, Hudson Thomas says.

“It’s still a great family destination with Disneyworld” she says of Orlando. “Cancun is our only international destination this year.

The biggest crowds can be found on the Friday before Memorial Day and the biggest travel day will be Thursday, July 3, the report says.

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Good Citizenship

Young Life York Sponsorship Sign
At Springwood Hospitality we firmly believe that we are to make a difference in the communities we serve. That’s why we’ve teamed with Young Life York County as the Event Sponsor for their annual banquet this year.

Young Life is an international not-for-profit that reaches out to adolescents of all stripes to show them love and encouragement in 1 on 1 relationships, in “Club” meetings where they can be crazy and just be kids, and at summer camps, where most kids say they had “the best week of my life”.

All of this effort is geared to showing adolescents the love of Christ. Volunteers and staff do this to earn the right to be heard, to share the story and power of Jesus Christ. Regardless of response, kids are loved and supported by Young Life leaders and staff. Many of these special relationships last a lifetime.

Young Life is a special organization that is making a difference in the lives of thousands of teens. We are honored to play a part.

Dave Hogg

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US Hotel Values Graph 10-2013STATE COLLEGE, Pennsylvania — Hotel values are set to increase through at least 2014, led by particularly strong gains in the economy segment, according to the latest Penn State Index of U.S. Hotel Values.

Hotel values are projected to increase 8.8% during 2013, equating to a per-key value of $106,957. During 2014, values are projected to increase 6.9% to a per-key value of $114,334, according to the index.

“Hotels continue to be a preferred investment during uncertain economic times. U.S. gross-domestic-product growth is expected to continue, but not at inspiring levels. Long-term interest rates are anticipated to remain fairly low. Unemployment is expected to continue to hover in the 7% range, keeping consumer spending relatively strong,” said John O’Neill, director of Penn State University’s School of Hospitality Management and creator of the index.

“Occupancy levels will be at or near their historical peak. Average daily rates are expected to register moderate gains. Construction activity is expected to remain moderate, or at least well below historical averages. Commercial and leisure transient hotel room demand is expected to stay pretty strong, whereas group demand is a bit dicey.

US Hotel Values 10-2013“Average U.S. hotels are expected to remain profitable in the near term,” he said.

NOTE: This article is largely reprinted from a recent article by Patrick Maycock, Editor-in-Chief, HotelNewsNow.com. I thought my readers would learn from it.
Dave Hogg

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Sure Sign of Progress

Yes, it’s time for all of Springwood to Dellsmove to the 64-bit world of dual screens and wonderful efficiency.

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Service Got You Down?

Service photoI’d hate to be in the shoes of a millionaire who wanders into this establishment with “only” a $100,000-limit Visa card and a wallet full of $50 bills.

“NO ICE CREAM FOR YOU!”

The following words of wisdom are strictly for those of us who elect – of our own free will – to go into the service business.  If you ever feel like posting something as uninviting as these signs at your primary guest interface, please do one or more of the following instead:

  1. Take a beach vacation.  (Maybe some “chill time” will knock some sanity back into you.)
  2. Go home and kick your pet.  Or go to a gym and kick a heavy bag.  Please, just kick something other than your guest.
  3. Visit a church on Sunday morning (God loves people more than anything;  perhaps you’ll learn from His example.)
  4. Find a different occupation.  (I hear they’re hiring 5,000 new IRS agents…)

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Recovering Economy Lifts Business Travel

A July 15, 2013 article in The New York Times says that travelers in the United States will spend about $273.3 billion on the road in 2013.  That’s a 4.3 percent increase over last year, and a reflection of stronger growth in domestic travel as the national economy stabilizes.

Of the estimated $273.3 billion, about $117.1 billion will be spent on group travel — meetings and conventions, conferences, incentive trips and the like. And $33.1 billion will be spent in the United States on international travel.  The information comes from a report that trade group Global Business Travel Association has released preceding its annual convention, which will be held early August in San Diego.

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