Revenue Management

🏦 Saul Hoppenstein and James Elmore of Berkadia secured a $45.9 million loan for refinancing Hampton Inn & Suites in Miami’s Brickell neighborhood. Miami-based Hospitality Operations, Inc. is the sponsor. The loan is five-year, fixed-rate, with interest only, offered by a life insurance company. The 221-key hotel features amenities like a rooftop pool and is situated near transport links and entertainment in Miami’s financial district.

📈 The Economist's digital subscription pricing varies over 300% based on the subscriber's nationality. Two years after an initial review, the pricing inconsistency persists in 2024. Subscribers from poorer nations like Pakistan and Burundi pay double compared to richer ones like Canada and South Korea. Australia and New Zealand continue to face high rates despite currency weaknesses. Canada's subscription increased by 28%, while North and South America (excluding Canada) saw a 21% rise. The "Economad Index" contrasts The Economist's pricing with the Big Mac Index, revealing that most world currencies appear overvalued in the Economad Index. Disparities are evident, as a Cook Islander pays 31% more than a Brit for the same digital content, leading the author, Hal, to cancel his subscription costing over A$500.

🏨 U.S. RevPAR declined by 2.1% YOY in Q1, with some hotel C-corporations seeing a decrease of up to 5%. CBRE's study on U.S. hotel loyalty programs—Choice, Hilton, Hyatt, Marriott, Wyndham—found loyalty member occupancy contribution surged despite a lower per-member contribution. Average loyalty members per room increased to 128 in 2023 from 120. Loyalty member contribution to occupancy rose by 2.5 percentage points to 51%, and the balance sheet liabilities for loyalty points grew by 9.3%. However, average liability per member decreased by 1.7% YOY to $18.86. Room nights per member returned to 1.1, the pre-pandemic level, in 2023. Loyalty point redemption revenues jumped by 11% to $1.1 billion. Loyalty point expenses on P&L statements rose by 14.3% in 2023, surpassing room revenue growth of 8.3% and total revenue growth of 9.4%.

📈 The Travel and Mobility Sector Attractiveness Report spans 2018-2023, analyzing investment priorities in aviation, ground transport, hospitality, and online travel. Highlighting startups that secured funding, it's a tool for industry professionals to strategize for future developments. Full report available for download.

🏨 Wyndham inaugurated ECHO Suites Spartanburg in Spartanburg, S.C., marking its first ECHO Suites location with a 124-room prototype. Announced in 2022, the brand aims at the extended-stay market with around 270 hotels and over 33,000 rooms in development across the U.S. and Canada. The new hotel offers suites with kitchens, free WiFi, smart TVs, EV charging, and amenities like a fitness center and laundry facilities. Driftwood Hospitality entered Kentucky with the $75 million Canopy by Hilton Downtown Louisville, boasting 168 rooms, a historic district location, and completion expected in Q4. It offers 5,100 square feet of meeting space and multiple dining options. Protea Hotels celebrated its 40th anniversary by opening in Angola and South Africa, with locations in Luanda (84 rooms) and Pretoria Hatfield (203 rooms), each offering various dining and leisure facilities. Rotana added the Palma Bay Rotana Resort in New Alamein, Egypt, to its portfolio, now totaling 702 keys within the country, featuring 176 rooms and numerous amenities, as part of a broader 77-hotel operation across regions with a pipeline of 9,830 keys.

📈 The Consumer Price Index dropped 0.1% in June, first decline since 2020, with an annual increase of 3%, nearing the Fed’s 2% target. Food index rose 0.2% in June; food-at-home up 0.1%, food-away-from-home climbed 0.4%. Over 12 months, food-at-home prices increased 1.1%, while restaurant prices jumped 4.1%. Full-service restaurant menu prices rose 0.6% versus limited-service at 0.2% in June. Kalinowski Equity Research predicts full-year 2024 same-store sales growth to be significantly lower than 2023.

🏖️ Las Vegas led meeting volume growth with a 22.2% YOY increase, followed by St. Louis at 12%. Average space used in the top 25 U.S. markets was 4,127 sq ft with 141 attendees; secondary markets used 4,085 sq ft for 132 attendees. The top five markets by YOY growth in event volume, led by Las Vegas, varied in industries such as sports entertainment and technology. Louisville topped secondary markets with a 72.73% increase in event bookings, with financial/banking as the leading industry. Other high-growth secondary markets included Madison, Sacramento, Pittsburgh, and Norfolk-Virginia Beach with notable YOY growth and diverse leading industries.

💸 Michael McCartan, area VP EMEA at IDeaS, examines revenue management in boutique vs. branded hotels. Boutique hotels have traditionally been hesitant to adopt advanced revenue management solutions. These hotels face a greater impact from revenue strategy errors, with a 20% discount on room rates resulting in a 10% revenue decrease for a 20-room hotel versus a 1% decrease for a 200-room hotel. Advanced revenue management systems (RMS) can help smaller hotels optimize pricing, minimize gap nights, and employ flexible pricing strategies. Larger hotels already benefit from automation in pricing adjustments and inventory management. Embracing RMS can enable boutique hotels to compete effectively, even during off-peak seasons or local demand spikes.

💰 Marriott International launches Business Access by Marriott Bonvoy, a new online travel booking platform for small to medium-sized businesses. Available in the U.S., Canada, Europe, Middle East, Africa, Caribbean, and Latin America, the program offers discounted rates on hotels, flights, rental cars, and rail within one multilingual tool. A global survey shows 75% of business travelers experience booking frustrations, with 58% preferring to book outside their companies’ platforms. The platform includes features like real-time reporting, expense management, and traveler safety monitoring, with plans to expand to other regions.