Tag Archives: Dave Hogg

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

Leave a comment

Filed under Dave Hogg

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.

Leave a comment

Filed under Dave Hogg

Americans Plan to Spend More on Travel This Summer

(Edited down from a May 21, 2012 story By Kate Rice)

Americans plan to spend more on travel this summer than last year, according to a recent Orbitz survey.  More than half plan to spend over $1,500 on the trip, while only 39% said that in the 2011 survey.  77% plan on taking a vacation this summer.   56% plan to drive even though 60% said gas prices would impact their travel planning.

July is the hot travel month, with 31 percent saying they plan to travel during the month.  Orbitz said that New York City moved up from the sixth most popular destination in 2011 to the number two spot this year.

Nearly half of survey respondents are getting summer travel ideas through social media platforms such as Facebook and Pinterest.  Most American consumers plan to travel domestically (81%), and 19% are planning to travel internationally this year.

Dave Hogg

Leave a comment

Filed under Uncategorized

Help Springwood Hospitality “Stick it to Hunger” Today!

Springwood Hospitality gladly supports the local food bank and is conducting a food drive April 11th to April 28th.  Thank you for joining us in the fight against hunger!

Please click on the link to read all the details and where food donations are accepted.  Springwood Hospitality Food Drive Details

4 Comments

Filed under Dave Hogg, Justin Shelton

Is your hotel too hip for you?

The hallway of the W Atlanta Downtown illustrates the writer's comments.

By Jayne Clark, USA TODAY (Edited down to “blog length” – with apologies – by Dave Hogg)

Some of the hallmarks of cutting-edge urban hotel design — lobbies that double as party lounges, low-slung seating that (for those of a certain age) make getting up gracefully a challenge, complicated in-room control panels that bewilder, oddly placed fixtures (think bathtub in the middle of the guestroom) and lighting so dim it’s hard to see what’s where — are signs that your hotel might be too hip for you.

Joan Eisenstodt, a Washington hospitality industry consultant, recalls having to fumble for a flashlight as she made her way to her room in the W hotel in San Diego. “Ws are fabulous and funny. But they’re clearly not designed for anyone over the age of 35,” says Eisenstodt, 63. “The halls are too dark. They’re not even safe.”

“There are people who skew older but are young at heart and want to hang out in a more youthful environment,” says Chip Conley, 50, executive chairman of Joie de Vivre Hotels. “If the type is too small on the menu, they’ll just put on their glasses and deal with it.” The 35 boutique hotels in the Joie de Vivre catalog were created by using magazines (Real Simple meets Dwell) or movies stars (Gwyneth Paltrow meets Harrison Ford) as guiding principles in their design. The idea is to appeal to guests’ lifestyles.

Boutique hoteliers like Conley may have pioneered this approach, but in recent years the major chains have followed with their own “lifestyle” brands that convey the message: You are where you stay. (Among the new-ish lines: Hyatt’s Andaz; InterContinental’s Indigo; Starwood’s W and Aloft; and Marriott’s Edition.)

But can a hotel be too hip? Yes, says Conley, if it isn’t mindful of its target audience. Hotel consultant Daniel Edward Craig says some hoteliers have gotten so immersed in cutting-edge design, they’ve neglected service. “If the service and staff are warm, they can overcome the initial intimidation you feel when you walk into a foreign environment. The problem is that some hotels have put so much money into design and hired the wrong staff,” he says.

Craig, the former general manager of Vancouver’s trendy Opus Hotel (which created buzz when it opened in 2002 with its glass wall that separates the men’s and women’s restrooms) believes a hotel can do one of two things: “It can make you feel a bit cooler for being there, or it can make you feel not cool enough.”

Greg Myers, 42, was firmly in the latter camp when he checked into the W Chicago last year. “I felt like a senior citizen at a senior prom,” says the York, Pa.(!), sales director. “It was dark. The music was loud. It was the worst experience.”

Adam Goldberg, 43, encountered a similar scenario upon arriving at New York’s Hudson (whose website touts it as the Ultimate Lifestyle Hotel for the 21st Century). “It was like checking into a nightclub,” says the Fairfax, Va., digital TV consultant. “Dance music, dim lights, dark surfaces.”

Other frequently travelers are confounded by the tech-tronics of cutting-edge hotels. Tracy Kulik, 55, spent a fitful night at the James Hotel (now the Hotel Theodore) in Scottsdale, Ariz., when she couldn’t figure out how to turn off the LED illumination on the headboard and bed base. And she found the shower in her room at Washington’s Donovan House hotel so peculiar (it protruded into the bedroom and glowed), she snapped a photo with her cellphone.

Even Steve Carvell, associate dean of the Cornell Hotel School, admits to occasionally being confounded by how things work in some lifestyle hotels. But just as you might trade in your sports car for a van when you have kids, you might have to change hotels as you get older. “The brand doesn’t have to shift. It’s a question of whether you (now) belong in that demographic,” says Carvell, 54. “That’s why (hotel chains) create a family of hotels. They’re looking at you as a lifetime customer.”

Eisenstodt, who spends about 180 days a year on the road, has a different take. “I think hotel designers are going a little crazy in trying to be hip. There are (Baby) Boomers who may want to stay in a cool hotel. But they want light they can read by and furniture they don’t have to struggle to get up from,” she says. “When you’re 60-something and not totally cool and you’re not made to feel welcome, you wonder, ‘Isn’t the hospitality industry supposed to make you feel welcome?’ ”

COMMENTARY:  My family will be staying at the leading-edge-style Curtis Hotel in Denver this summer.  I’ll report back to you how the middle-aged parents – vs. the two teenagers who will be with us – view the atmosphere. I agree with consultant Eisenstodt that hotels’ pursuit of an ever narrower target market can repel some of the fat part of their market. (Double entendre intentional)  Time will tell if these moves are wise.  I have my doubts about them except in the largest U.S. markets.

It’s also cool that Jayne Clark shares an interview with a traveler from our home base of York, PA.  Trust me, we don’t often see that!

Dave Hogg

Leave a comment

Filed under Uncategorized

Reality Check: US Hotel Room Prices Repairing

In a Feb 16, 2011 article in MarketNews.com, Claudia Hirsch chimes in on what all of us are seeing.  The following are some quotes from her article.

“After discounting prices throughout the recession, U.S. hotels have begun gently repairing room rates as occupancy levels increase, but full price restoration is still far off, according to hotel executives, travel agents and meeting planners.  Lodging prices began edging higher in 2010.  Stronger leisure and business occupancy has prompted the turnaround in room prices, and early 2011 signs point to guest counts trending upward throughout the year.”

(We’re also seeing a strong return of the vaunted Business Traveler in the central PA markets that we serve.  It’s been helping us to register some strong revenues.  In October through December 2010 our Holiday Inn Express & Suites actually logged its best 4th quarter revenue ever.   It’s been open for 17 years.  There are other competitive factors at work in that local market, but it’s an indication of the resiliency of the industry.)

“Still, a return to pre-recession room prices is likely a year or more away for many hotels… At a three-star hotel off New York City’s Times Square, room prices have nudged 6% to 7% higher year-to-date vs. last, despite a growing glut of inventory in the metropolis.  ‘Our occupancy is up, and the consumer is more confident. We can see it and feel it. But at the same time, they want value,’  said John Canavan, general manager at the Hotel Edison.”

Springwood has seen the same trend.  Our rates are up across the board, and occupancies are improving, but we have yet to see pre-recession ADR’s.  It could be a couple more years until prices fully recover.

by Dave Hogg

Leave a comment

Filed under Uncategorized

U. S. Business Travel to Grow 5% in 2011

According to a recent study conducted by the National Business Travel Association and reported by Bloomberg, business travel spending should grow 5% in 2011.  They credit both a growing economy and stronger corporate profits.

Business travel in 2010 grew 2.3% in 2010 according to NBTA estimates.  We saw this impact anecdotally in our hotels that cater to business travelers, who started showing up again in stronger numbers in 2010.  This factor helped fuel the nearly 16% revenue increase in 2010 at our Homewood Suites by Hilton (a great brand, by the way).

NTBA points out that international business travel rose a whopping 16.9% in 2010, fueled by export-driven commerce.  That’s a huge gain, and it is an actual benefit of the weaker dollar.  Let’s hope that the federal government someday sees the wisdom of promoting this valuable export as a way to grow the economy and ease our trade deficit.

I predict that NTBA is right about the coming 2011 increase in business travel.  As its spokesman said in the article, “Companies are once again recognizing the value of face-to-face meetings … to build relationships.”

At Springwood, we build our business on relationships, because we believe that relationships drive not just our business, but all business.  There is no better way to build them than face-to-face!

Dave Hogg

Leave a comment

Filed under Uncategorized