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April 12, 2018

The profitability of hotels in the U.S. increased in 2017, in line with the growth of the economy under President Trump, according to the latest findings from a new publication, “Profit Matters: U.S. Annual Hotel Performance Tracker 2018,” released by the hotel benchmark service, HotStats.

According to the report, full-service hotels in the U.S. recorded a 2.9 percent increase in profit per room in 2017, which was on the back of growth in all revenue departments fueling a 2.5 percent increase in TrevPAR (Total Revenue per Available Room) for the year.

The growth in hotel revenue was attributed to the 2.3 percent year-on-year increase in GDP in the U.S., as the performance of hotels in North America has a strong correlation with the health of the economy.

In addition to a 2.0 percent increase in RevPAR, growth in non-rooms revenues, including food & beverage (+2.4 percent) contributed to the uplift in TrevPAR, with the strongest month of hotel performance identified as October 2017, where total revenue levels peaked at $284.03 per available room.

That said, while falling unemployment levels and increases in minimum wage also are seen as positive indicators of economic performance, the publication cites labor costs as one of the biggest threats to profit levels at hotels in the U.S. going forward, illustrated by the 1.7 percentage point year-on-year increase in 2017, to 34.9 percent of total revenue.

Nevertheless, the outlook for the overall U.S. hotel market in 2018 is positive, with consumer spending likely to remain supported by rising household wealth, thanks to the booming stock market and higher house prices, as well as tax cuts.

In addition to covering the overall U.S. hotel market, the publication drills down to reveal the profit performance of individual city markets across the U.S., providing a flavor of the capability of HotStats. These markets include Washington D.C., San Diego, Houston, New York City, where the profit conversion of hotels are among the lowest in the country, and San Francisco, where profit levels have been challenged by escalating labor costs

“HotStats is proud to be publishing the results of the first ‘Profit Matters: U.S. Annual Hotel Performance Tracker,’ which presents comprehensive monthly data for the full calendar year 2017 versus 2016. 

We are excited to bring this product to the U.S. and thrilled at the engagement from the industry’s leading hoteliers, whom we would like to thank for their invaluable contribution.

For the first time, through the power of HotStats, America’s hotel industry can access and apply monthly operational profit and loss benchmarking to combat today’s challenges and properly align owners and operators through crystal clear visibility all the way to the bottom line,” said Pablo Alonso, CEO of HotStats.

Region/City USA New York City San Francisco
KPIs 2017 vs 2016 2017 vs 2016 2017 vs 2016
RevPAR $157.50 +2.0 % $285.55 +1.4 % $230.89 -3.4 %
TrevPAR $250.50 +2.5 % $391.58 +2.8 % $312.44 -1.6 %
Labor Costs as a % of Total Revenue 34.9 % +1.7 pts 46.5 % +2.5 pts 41.2% +4.6 pts
GOPPAR $93.86 +2.9 % $120.26 +2.8 % $112.58 -6.8 %
GOP as a % of Total Revenue 37.5 % +0.2 pts 30.7 % 0.0 pts 36.0 % -2.0 pts

 

 
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TORONTO, ON (April 04, 2018) – Kimpton Hotels & Restaurants has named Bertrand Mangeot, General Manager, and Maria Chung, Director of Sales and Marketing for Kimpton Saint George, Toronto’s first ever Kimpton hotel, opening summer 2018. Mangeot will oversee all front-of-house operations while Chung will manage sales and marketing initiatives for the hotel. Together they will help to bring the brand’s ridiculously personal service and human touch to life at Kimpton Saint George.

“Bertrand and Maria both embody the heartfelt human connection crucial to Kimpton’s signature service characterized by unique personalized experiences. Their years of hospitality service combined with their love of Toronto makes them the perfect team to introduce Kimpton Saint George to the world,” said Ron Vlasic, Vice President, Kimpton Hotels & Restaurants.  

Born and raised in France, Mangeot brings an extensive background in hospitality. He began his career in Luxembourg at KPMG before returning to France to work for Karibea Hotels, assisting the Chief Financial Officer. From there, Mangeot moved to New York City, where he held multiple positions at InterContinental Barclay. Here, Bertrand’s skills established him in the InterContinental family, enabling him to move to the InterContinental Hotel Cleveland, where he held various senior titles over the span of seven years. He then joined the InterContinental Toronto Centre, where he continued to successfully lead and manage multi-million dollar projects.
 
Born in Hong Kong, Chung moved to Toronto in pursuit of fulfilling her lifelong ambition to work in the hospitality industry. Her hotel career was launched in 1990, when she played an instrumental role in the opening of InterContinental Toronto Yorkville, where she spent 10 years. Subsequently, she worked in various senior sales and marketing positions for InterContinental Toronto Centre, Hyatt Hotels and Resorts U.S. and Caribbean and the Westin Prince Toronto. Next, Chung helped to introduce the Thompson Hotels brand to Canada joining the Thompson Toronto team. Thereafter, she held various managerial positions at the Toronto Congress Centre before moving to the Sheraton Centre Toronto Hotel, where she was responsible for sales and marketing.

Located amidst Toronto’s world-class museums and attractions as well as a litany of independent shops, cafes, galleries and arts institutions, Kimpton Saint George will offer its guests access to Toronto’s multi-faceted cultural scene in one of its most notable districts, the Annex. The 14-story hotel will feature 188 artfully designed guest rooms, including 20 suites, a presidential suite and approximately 1,500 square feet of naturally lit meeting space. Amenities will include a fitness centre, complimentary PUBLIC bikes, in-room yoga mats, pet-friendly accommodations, complimentary morning coffee and tea service, hosted nightly social hour, as well as in-room dining and catered events from a soon-to-be-announced adjacent restaurant .

Reservations are currently available for dates of stay starting July 1. For more information, visit www.kimptonsaintgeorge.com and follow along on the hotel’s journey to its summer opening on Facebook and Instagram.

 
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DENVER (April 4, 2018) — RLH Corporation (NYSE:RLH) today announced it has entered into a definitive agreement to acquire the Knights Inn brand from Wyndham Hotel Group, LLC a subsidiary of Wyndham Worldwide (NYSE: WYN) for an aggregate price of $27 million cash, subject to certain post-closing adjustments. Knights Inn is a hotel brand focused on getting the essentials right – a restful stay in a convenient location at an affordable price with more than 350 economy segment hotels across North America and a pipeline of an additional approximately 47 hotels. The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions.

RLH Corporation expects the transaction to enhance franchise revenue and EBITDA growth and boost franchise profit margins as the company will be able to leverage existing technology and support systems. The transaction will be immediately accretive to the company’s earnings and cash flow. 

“The acquisition of Knights Inn enhances RLH Corporation’s position as one of the 10 largest hotel franchisors in the world,” said Greg Mount, RLH Corporation President and Chief Executive Officer. “In the first quarter of 2018, we announced the sale of five hotels and committed to enhance the company’s aggressive organic growth with acquisitions that could be accomplished primarily with our existing cost base and resources. This acquisition will increase our franchise units by over 30 percent and we will continue to grow the brand aggressively as we have demonstrated with our other brands.”

Knights Inn owners and guests will begin to experience the benefits of RLH Corporation’s industry leading technology and guest recognition program quickly after integration of the hotels. 

“Wyndham helped grow Knights Inn into a nationally known name with more than 350 hotels throughout the U.S. and Canada,” said Geoff Ballotti, president and CEO of Wyndham Hotel Group. “While we’re proud of what we’ve been able to accomplish, we believe now is the right time to make this move and are confident that RLH Corporation will only continue to support and grow the brand." 

 “Knights Inn owners will be quickly brought onto our state-of-the-art  systems, a handpicked suite of the industry’s finest customer acquisition, guest management, and business intelligence tools proven to increase RevPAR, grow market share and boost revenue for our brands,” added Mount. “Knights Inn will also feature our unique Hello Rewards guest recognition program, giving guests personal touches and extra perks across all our hotel brands.” 

 
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March 26, 2018

After a somewhat shaky start to the year, hotels in the U.S. recorded a robust 4.4 percent increase in profit per room in February, which was fuelled by year-on-year growth in revenue from the leisure segment, according to the latest worldwide poll of full-service hotels from HotStats.

The punchy increase in profit per room recorded at hotels in the U.S. this month, which grew to $95.99, was equivalent to a profit conversion of 36.8 percent of total revenue; and was driven by a 3.6 percent year-on-year increase in TrevPAR to $261.04.

Increases across non-rooms departments in February contributed to the growth in TrevPAR and included an uplift in food & beverage revenue (+5.4 percent), as well as conference & banqueting revenue (+6.9 percent) on a per available room basis.

The growth in total revenue was also supported by a robust increase in rooms revenue, which was as a result of an uplift in room occupancy (+0.5 percentage points), to 75.3 percent, as well as achieved average room rate (+1.3 percent) to $207.81, which helped fuel a 1.9 percent increase in RevPAR to $156.42.

Top-line growth at hotels in the U.S. was as a result of rate growth in both the individual leisure (+3.2 percent) and group leisure (+3.6 percent) segments this month, which was in contrast to the decline in achieved average rate in the residential conference (-1.3 percent) and corporate (-2.4 percent) segments.

Profit & Loss Key Performance Indicators – US (in USD)

February 2018 v February 2017

RevPAR: +1.9% to $156.42

TrevPAR: +3.6% to $261.04

Payroll: +0.0 pts to 35.7%

GOPPAR: +4.4% to $95.99

“The widely anticipated ‘Trump Slump’, so called because the number of overseas visitors traveling to the U.S. was expected to decline in line with President Trump taking office and the implementation of travel bans and increased security protocols, appears to either not have materialized or not been as severe as feared.

Either way, it is having little impact on the ability of hotels in the U.S. to capture demand from the leisure segment, which is great news for hotel investors and operators who will welcome a broadening of the demand based,” said Pablo Alonso, CEO of HotStats.  

While labor costs remained relatively flat across the operation this month at 35.7 percent of total revenue, the uplift in payroll presented challenges in specific departments, which included the rooms department.

Despite the growth in RevPAR, profit conversion in the rooms department fell by 0.4 percentage points to 73.6 percent of rooms revenue, as a result of incremental increases in departmental payroll levels, which grew to 16.7 percent of rooms revenue in February.

In contrast to the positive performance of hotels across the U.S. this month, profit per room at properties in Boston fell by 54.8 percent to just $14.96, as a result of declining revenues across all departments.

The decline in RevPAR at hotels in Boston was as a result of a fall in room occupancy, which dropped by 1.6 percentage points, to 69.8 percent, as well as a 2.1 percent decline in achieved average room rate to $179.93.


In addition to the drop in rooms revenue, falling non-rooms revenues included a decline in food & beverage revenue (-18.4 percent), as well as conference & banqueting revenue (-21.5 percent) on a per available room basis, which contributed to the 8.1 percent year-on-year decline in TrevPAR at hotels in Boston in February to $180.60.

Profit & Loss Key Performance Indicators – Boston (in USD)

February 2018 v February 2017

RevPAR: -4.2% to $125.66

TrevPAR: -8.1% to $180.60

Payroll: +6.6 pts to 55.4%

GOPPAR: -54.8% to $14.96

The decline in revenue levels further exacerbated the increase in labor costs at hotels in Boston, which increased by 6.6 percentage points to 55.4 percent of total revenue.

As a result of the movement in revenue and costs, profit conversion at hotels in Boston fell to just 8.3 percent of total revenue.

The Boston hotel market is in the middle of a building boom, which included the addition of approximately 1,500 bedrooms in 2016 and a further 700 bedrooms in 2017.

Key openings are testing the market in terms of volume as well as price, which is primarily due to their positioning in the mid-market and ‘affordable luxury’ segments, including properties operating under the Aloft, AC by Marriott, Hilton Garden Inn, and Yotel brands.

A further 4,500 bedrooms are in the hotel development pipeline in Boston and due to open in the next few years, which is likely to mean there is some pain to come for the capital of Massachusetts,” added Pablo.

Much further south, February is typically a peak period of performance at hotels in Phoenix due to the climate and this month was no different with TrevPAR climbing by 1.5 percent to $382.05, which is more than 40 percent above the 12-month rolling average for hotels in the desert city at $268.38.

The growth in total revenue was led by a 3.9-percent increase in RevPAR to $210.05, which was as a result of year-on-year increases in both room occupancy (+1.5 percentage points) and achieved average room rate (+2.1 percent), as well as increases in non-rooms revenues.

While top line performance at hotels in Arizona was buoyant, the data suggests it was somewhat fuelled by bookings via third party intermediaries, illustrated by the 17.3 percent year-on-year increase in rooms costs of sales (i.e., the HotStats measure of travel agents’ commissions, reservation fees, GDS fees, third party fees and Internet booking fees), to 4.7 percent of rooms revenue.

Despite the uplift in rooms costs of sales, hotels in Phoenix were able to cut costs in other departments, which included a 0.1 percentage point saving in labor costs to 27.3 percent of total revenue. 

As a result, at $183.23, GOPPAR at hotels in Phoenix was 1.3 percent ahead of the same period in 2017 and approximately 95 percent above the rolling 12-months to February 2017, at $94.12.

Profit & Loss Key Performance Indicators – Phoenix (in USD)

February 2018 v February 2017

RevPAR: +3.9% to $210.45

TrevPAR: +1.5% to $382.05

Payroll: -0.1 pts to 27.2%

GOPPAR: +1.3% to $183.23

 
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TORONTO, March 22, 2018 /CNW/ - On April 23, Toronto will host more than 60 of the most visionary, knowledgeable and innovative professionals in hospitality and tourism at the annual Terroir Symposium. Now in its 12th year, Terroir is North America's marquee gathering for sommeliers, chefs, hoteliers and producers, which has made Ontario a world-class destination for culinary travelers. Guests will engage with renowned speakers, network with industry leaders and influencers, and explore trends in food, beverage and travel.

This year's conference theme, Terroirnomics: The Powerful Economics of Local, aims to provoke discussions around the value of supporting local businesses and producers, while showcasing the talent of chefs, growers, artisans and entrepreneurs.

"When we shrink our supply chains, source locally and support our regional growers and producers, the positive impact on the economy is extraordinary," said Rebecca Mackenzie, President of the Culinary Tourism Alliance, the organization behind this year's event. "We have always been huge supporters of Terroir and are thrilled to be managing the event because it aligns so closely with our mission and core values."

The Culinary Tourism Alliance (CTA) is managing Terroir for the first time after years as a partner and supporter of the event. With deep connections in the industry and a vested interest in the success of local businesses, the organization will bring together key stakeholders, experts, business leaders and media to discuss the profound economic impact food tourism can have on a given region. The public event will be held at the stunning Art Gallery of Ontario (AGO).

"We are ecstatic to host this inspired event for the third year in a row," said Renée Bellefeuille, Executive Chef, AGO. "Terroir's reputation has grown and now more than ever helps us attract some of the most curious, ambitious and knowledgeable hospitality professionals in the world to our beautiful city. Chefs see food as an art form, so the AGO is a natural backdrop for this incredible gathering."

Speaker Highlights

Elena Arzak (ARZAK, San Sebastian, Spain)
Revered and decorated chef and restaurateur

Farmer Lee (The Chef's Garden, Cleveland, Ohio)
James Beard winner, farmer and champion of sustainable agriculture

Jason Clampet (SKIFT, New York, New York)  
Co-Founder of SKIFT Table, a top trend-spotting resource for restauranteurs 

Dennis Prescott (Eat Delicious, Moncton, New Brunswick)
Best-selling cookbook author, food photographer and social influencer

Dr. Sylvian Charlebois (Professor, Dalhousie University, Nova Scotia)
Researcher, author and champion of terroir

Event Highlights

Keynote addresses from technology, culinary, beverage, hospitality and tourism experts.

Interactive panel discussions featuring a diverse and gender-balanced group of presenters.

World Food Court lunch, showcasing global cuisines curated by Suresh Doss, editor of Foodism.

Guests can opt to attend master classes which will each highlight a segment of Ontario's bourgeoning beverage industry. Experts in wine, spirits and beer will lead intimate discussions around these key drivers of local hospitality and tourism. The Great Ontario Craft Brew will showcase an exclusive beer brewed collaboratively by Great Lakes Brewery and Beau's Brewery. Wine lovers can spend the morning and afternoon portions of the event immersed in wine theory. The Wine Marketing Association of Ontario will host two of the master classes: Women in Wine and Cabernet Franc.

For more information or to purchase tickets, please visit TerroirSymposium.com

 

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