AMHB Lodging and Hospitality News

Room Rates Continue to Increase Despite Occupancy Rates

American Motel Hotel Brokers Network, one of America's top four Lodging and
Hospitality Brokerage networks, reported today that according to the Smith
Travel Research's STAR report during week of May 18 - 24, lodging occupancy
in America was at 66.9% with average room rates holding at $108.27.

Occupancy compared to same week last year was down 2.5%; yet, the average
room rates for the week compared to last year was up a hefty 4.2%.

Kisty Mauren, Associate Broker and Lodging Specialist, at American Motel
Hotel Brokers of Arizona and a veteran of the industry since 1976, noted that
"Wednesday and Thursday continue to be the highest occupancy and average
room rates nights of the week".

AMHB Survey Shows Hotel/Motel Profits are Increasing in 2008

American Motel Hotel Brokers Members......Lodging Specialists throughout the
United States.....in a survey state their opinion that as hotel demand in America
slows, the prices charged for rooms may be lowered.  Interestingly, with the
negative reports coming out daily pertaining to the American economy, the
new hotel construction in the United States is at an all time high.  This means
in the eyes of these lodging experts of the AMHB Network that rates may
begin to slow as supply catches up with demand.  According to analysts, profits
are forecast to increase by 2 1/2 % in 2008, and demand is expected to also
grow by one percent.

AMHB Reports U.S. Hotel and Motel Industry Contribution

The Research Department of Century 22's Worldwide Lodging and Hospitality
division, American Motel Hotel Brokers Network, reports that the hotels and
motels in the United States accounts for 31.7% of the global hotels and motels
industry's market value.

 

AMHB Reports Occupancy Down, but Average Room Rates Are Up

American Motel Hotel Brokers Network reports that as stated in the most recent STAR Report published by Smith Travel for the week of May 11 - 17, across America occupancies continue to erode compared to last year.  Last week's were down by 2.2%.  However, Average Room Rate was up compared to same week in 2007, by 5.2%, as was Revenue Per Available Room  up by 3%.  Jack Williamson, Senior Vice President of AMHB Network goes on to say, "with the unknown economic climate of the airline industry and the airline industry decisions that are adversely affecting the traveling public, it is actually unknown at this time what impact gas prices will have on this summer's traveling public.  It could possibly be favorable as people may take more car trips instead of air, and for shorter destination distances that would enhance occupancy at lodging properties."

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'ARIA'- CityCenter's New Centerpiece Hotel-Casino in Las Vegas

MGM Mirage has officially revealed the name of CityCenter's centerpiece resort: Aria.

The Aria Hotel and Casino Resort will serve as the core of CityCenter, which has 18 million square feet of public space and is considered the largest privately financed development in the United States.  Aria is expected to open in December 2009.

Aria will feature 4,004 lavish guest rooms, 150,000 square foot casino, 4 ballrooms that total 300,000 square feet of meeting/convention space, a theater that will feature a Cirque du Soleil production of Elvis Presley's musical work, and $40 million fine arts program.

Just outside Aria's lobby doors, The Crystals, CityCenter's retail and entertainment district, will house more than 500,000 square feet of upscale retail and deliver exclusive offerings from the world's most renowned brands.

The CityCenter is pursuing the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) certification. As planned, the 18-million-square foot, multi-use project will become one of the world's largest environmentally sustainable urban communities.

Economic Stimulus Checks Could Heat up the Lodging Industry

With Economic stimulus checks set to be delivered this month to more than 130 million households, studies have been conducted to show how these will be spent.

One study by Warren Jahn, a revenue management consultant with InterContinental Hotels Group, and his former professor, Stephen Morse, an economist and director of the Tourism Institute, studied the effects that the stimulus checks could have on the lodging industry.  "We looked at what happened in 2001 (the last economic stimulus rollout) and kept thinking to ourselves, 'This is a lot more money, especially when you look at families." Jahn said. "We think this will be a positive influence."

Jahn went on to speculate that because electronic filers will receive their money quicker than those that file through mail, the industry could see "two waves in distribution on how its going to be spent."

Occupancy Drops, But Average Room Rates Soar

American Motel Hotel Brokers Network announced today that based upon the
most recent STAR Report published by Smith Travel for the week of April 27
through May 3, 2008, throughout the United States the Occupancy for the
week was 63.1%.....down from previous year by 2.9%. " With Occupancy
dropping it is interesting to note", according to Mike Sprinkle, CEO of
Century 22 Worldwide Hospitality and Lodging's, American Motel Hotel Broker
Network Division, "that Average Room Rates maintained a high level of $108.55,
for the week giving ADR a 4.1% increase over the previous year".  Rev Par
also remained constant at $68.47, an increase of 1.1%.

Sheraton Hotels Looking to Expand and Rejeuvenate

The Sheraton Hotels & Resorts has reported that it plans to expand their brand with 29 additonal hotels  this year.  Locations include Denver, Washington D.C., Ireland, Egypt, China, California.  The company is also planning for 85 new hotels to open globally in 2010.  This would mark the largest expansion in the Sheraton's 71-year history.

In addition to their new developments, the Sheraton is looking to spend more than $1 billion to renovate approximately 50,000 North American guest rooms and more than 100 lobbies by the end of 2009.

Hotel Sales for 2008 Expected to Stay Strong

Though the sales in 2007 were record breaking, experts believe that hotel sales are likely to surge ahead through the remainder of 2008, even if the number of rooms sold doesn't keep pace with last year.

The Hotel Brokers International reports, "Despite disruptions in the capital markets and talk of recession, we anticipate 2008 will be another very active year for hotel real estate.  Supply growth remains constrained and the economy is expected to pick up in the second half or early next year, which will have a positive impact on hotel operations."

Suffer from Jet-Lag No More!

Hotels have started to address their travelers' jet lag by offering them some specialized amenities.  The hotels offering these amenities are mostly upscale. The amenities include:

A diet and exercise plan: The Sheraton chain is providing an excercise and nutrition plan this fall that was developed by Core Performance, a firm that trains top-level athletes.  It is their believe that the body takes a toll when traveling, so like with an athletic event, you must train and prepare for it.

Light therapy: The Westin chain has been testing an anti-jet-lag room in its Wheeling, Illinois hotel, near Chicago O'Hare.  The room will offer a soft blue light in the shower, which is designed to boost energy and a photo-therapy light on the desk.  The room also offers a sound machine with soothing beach noises or rainfall sounds, a sleep TV channel with meditative programming and black-out curtains.  The hotel does not allow for booking these rooms, they are given to customers that have flown at least two time zones away.

Special Pillows: The Conrad chain has started to give their customers a pillow menu that has been designed by sleeping experts.  Guests can choose a pillow that best resembles their favorite at home.