Cushman & Wakefield Hospitality’s Post

💼 Quick Metrics to Spot a Profitable Hotel Deal! 🏨 Looking to make a smart hotel investment? Here are 3 quick metrics that can help you identify high-value hotel deals and maximize your returns: 1️⃣ Number of Rooms (Doors) – The more keys, the higher the revenue potential. 2️⃣ Occupancy Rate – A strong occupancy rate signals demand and maximizes profitability. 3️⃣ Average Daily Rate (ADR) – A high ADR shows you have pricing power in the market. At Singh Commercial Group, we make hotel investments straightforward and profitable. Want to dive deeper into the world of hotel investments? 🔑 DM us now to explore incredible investment opportunities! Or contact us at info@singhcommercialgroup.com or call 210-696-9996 for more details. #HotelInvestment #RealEstate #CommercialRealEstate #InvestmentOpportunities #HotelDeals #SinghCommercialGroup #PassiveIncome #InvestmentInsights #WealthBuilding #RealEstateInvesting

🔔C&W HOTEL MARKET SPOTLIGHT - PARIS The sample of branded full-service hotels in Paris city centre recorded an increased profit during the 12 months running to September 2024. ⭐The GOP PAR grew by 6.6%, driven by 5.9% revenue growth and despite a rise of operating expenses (+5.4%). ⭐The Rooms revenue increased by 3.3% (RevPAR) driven by ADR growth (+2.1%), while occupancy increased only moderately to 76.4% (+1.1%). ⭐Despite the ongoing cost pressures, 44% of revenue growth flowed through to the bottom line, resulting in an increase of GOP margin from 38.8% to 39.1%. ⭐Supply growth remains constrained with some 1,500 rooms estimated to open throughout 2024, resulting in a 1.1% supply increase. 🏅 The Paris Summer Olympics had a notable positive impact on the hotel market. Nominal profits in July-August increased by 70% (GOP PAR), with profit margins surpassing 50% during the summer period.   For further information and support with your hotel real estate in France, contact our experts Jérôme Salomon MRICS and Joséphine Duforest. Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 📩 #CWHospitality #CWMarketBite #HotelInvestment #HotelRealEstate

Exciting news for the Chicago hotel market! 🏨 The resurgence of corporate travel is boosting performance with a forecasted 4% increase in RevPAR. Chicago boasts a 12-month occupancy rate of 63.7%, surpassing the national average of 62.8%, with group occupancy comprising about 25% of total occupancy. The Central Business District leads in occupancy, ADR, and RevPAR, with an ADR roughly $100 higher than the next submarket. In Chicago, there are currently 10 hotels under construction, totaling 1,005 rooms, mainly located in the CBD. Half of these are upscale properties, with the largest project set to deliver 140 rooms by 2026. Over the past year, hotel sales volume reached $368 million, with the Canopy by Hilton in the Central Loop being the largest sale at $25.6 million for 215 rooms. To discuss where your hotel falls in these trends Email:Deep.Dave@matthews.com or call: 630-597-3534 For more insights and detailed information, check out the Midwest Hospitality Market Report here: https://lnkd.in/g5NR9PVx 🌟 #ChicagoHospitality #HotelMarketTrends #BusinessTravelRevival

C&W HOTEL MARKET SPOTLIGHT – EDINBURGH Q1 2024 ⭐ Edinburgh’s hotel sector outperformed the UK national average in revenue growth, showing a healthy performance for the first quarter of the year despite an ongoing increase in the supply of hotels. ⭐“It’s encouraging news for Edinburgh hoteliers, particularly as VisitScotland recently announced that Scotland broke its record for the number of international visitors last year. There’s also been an uplift in the number of hotel investment transactions that took place in Edinburgh last year, which again was unique to the city compared to the rest of the UK where annual volume of sales decreased in 2023.” - Carl Ridgley, Head of Hospitality Valuation & Advisory at Cushman & Wakefield Read more by downloading our Edinburgh Hotel Market Spotlight: https://lnkd.in/evMG-vXD Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 📑 For further information and support with your hotel real estate in the UK, contact our experts Ed Fitch, Carl Ridgley, or Richard Candey, or contact us at HospitalityEMEA@CushWake.com Data source: HotStats (consistent sample of primarily upper-upscale branded hotels in Edinburgh) #CWHospitality #HotelInvestment #HotelRealEstate #UKHotels

So good to see that the Hotel Transactions in Europe are almost up to pre-pandemic levels.

The sun shone on the UK hotel industry in July, with occupancy and profitability soaring, according to the latest RSM Hotels Tracker. Chris Tate, head of hotels and accommodation at RSM UK, said: “It’s encouraging to see occupancy levels and profits back to pre-pandemic levels. The warmer weather and the holiday season have kept the momentum strong for the hotel industry.” With Taylor Swift’s Eras Tour having a noticeable impact on the industry this summer, the question now is: Can Oasis create a similar buzz next year, or will hospitality be left looking back in anger? https://lnkd.in/evs_YXc8

🔔 Higher revenues flowing through the bottom line ⭐ In Q1 2024, GOP per available room (PAR) in the sample of full-service branded hotels increased by almost 69% compared to Q1 2023. As a result, the profit margin has increased from 20% in Q1 2023 to 27% in Q1 2024. The profit margin on a 12-month basis reached 42.2% (£97 PAR/day). ⭐Despite an ongoing supply increase (+3.7%) during the first 3 months of 2024 well ahead of the national average, the Edinburgh hotel market benefits from healthy performance improvements. Read more by downloading our Edinburgh Hotel Market Spotlight: https://lnkd.in/evMG-vXD Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 📑 For further information and support with your hotel real estate in the UK, contact our experts Ed Fitch, Carl Ridgley, or Richard Candey, or contact us at HospitalityEMEA@CushWake.com Data source: HotStats (consistent sample of primarily upper-upscale branded hotels in Edinburgh) #CWHospitality #HotelInvestment #HotelRealEstate #UKHotels

C&W Hotel Market Beat – Europe H1 2024   🔔 European hotel transaction volumes amounted to more than €11.6 billion in H1 2024, marking the highest 6-month volume since 2019, up 49% from H1 2023 and only 9% short of H1 2019.   Several large portfolio deals drove these volumes, representing more than one third of the total.   London remains the leading destination for investor activity, followed by Paris and Dublin.   Looking ahead, volumes are projected to surpass 20 billion EUR in 2024, supported by increasing debt liquidity and strong hotel performance.   To find out more, download the full Market Beat here: https://lnkd.in/dG64rF3d   Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 📩   For further information and support with your hotel real estate in Europe, contact our experts Jonathan Hubbard, Le Fichoux Frederic, Ed Fitch, Carl Ridgley, Richard Candey, Mark Woolfitt, Alessandro Belli, Albert Grau - MRICS, Bruno Hallé Boix, Jérôme Salomon MRICS, Gonçalo Garcia, Ralph van Polanen Petel, Christine Mayer, David Nath MRICS and Borivoj Vokrinek.     #CWHospitality #HotelInvestment #HotelRealEstate

🔔C&W HOTEL MARKET SPOTLIGHT - MANCHESTER The sample of branded full-service hotels in Manchester city centre recorded an increased profit during the first 8 months of 2024, despite the ongoing supply growth. ⭐The profit levels (GOP PAR) grew by 13.5%, driven by 4.4% revenue growth and despite a marginal rise of expenses (+1.4%). ⭐The Rooms revenue increased by 3.6% (RevPAR) driven primarily by ADR growth (+2.8%), while occupancy grew only moderately to 76.3% (+0.6%). ⭐Thanks to the constrained expenses, 76% of revenue growth flowed through to the bottom line. Resulting in an increase of GOP margin from 24.9% to 27.1%. ⭐Over 800 rooms are expected to open in Manchester by the end of 2024, representing the key challenge for the local market Subscribe now to receive tailored updates and expert analysis delivered directly to your inbox: https://lnkd.in/ebPWfeEJ 📩 For further information and support with your hotel real estate in the UK, contact our experts, Ed Fitch, Carl Ridgley, Richard Candey, Mark Woolfitt and Yana Lytvynchuk MRICS. #CWHospitality #CWMarketBite #HotelInvestment #HotelRealEstate

Every hotel, regardless of the size or type, experiences days, weeks or months of slow periods. During these low periods, hotel managers lower hotel rates in order to increase the hotel occupancy, however, this strategy doesn’t always increase the room revenue. The risk is, if you don't sell sufficient rooms on a discounted rate, it will not cover your operating costs. So if the occupancy still remains at 20 to 30% on a weekday on a discounted rate, then it is a wrong strategy for that particular property.