Latest news with #HVS
Hospitality Net
4 days ago
- Business
- Hospitality Net
Uncertainty Abounds: HVS Takeaways from NYU International Hospitality Investment Forum 2025
With contributions from Kannan Sankaran, Patricia Shih, Neil Flavin, Alice Sherman, and Cole Masler. The start of June always brings the industry together in New York City, and we enjoyed our time at the NYU International Hospitality Investment Forum this year. It was great to see many of you there and share our recent experiences in the industry. The conference was preceded by our webinar that provided an update of our forecast and views from HVS President – Americas, Rod Clough. You can view the webinar here. The conference brought forward a noticeable mix of contrasting viewpoints as to the state and near-term future of the industry. Some attendees were convinced that transaction activity will pick up in the next three to six months as we transition to a more balanced seller/buyer dynamic. Others expected transaction activity in major markets to be down for the duration of 2025, citing the recently instituted federal tariffs and government job cuts that have created some uncertainty in the levels of both domestic and international travel. They see these as factors that are causing capital to stay on the sidelines for the time being. Whether more positive or negative in their near-term future view, investor sentiment remained cautious in both camps. Luxury and lifestyle segments continue to outperform, and a stronger focus on acquisitions over development has taken hold. There appears to be a disconnect between media reports of low consumer confidence and the 2025 travel trends observed in several key markets. Industry participants are watching the summer travel season to see if the positive trend continues in these markets (or reverses the declines in others). These stakeholders are also keeping a close eye on inflation and unemployment levels, the two key factors that could affect discretionary spending. Group business has become a big driver of demand in the absence of the typical leisure and commercial sources. As a result, RevPAR is likely to stay stagnant or decline in many markets, as this supplemental group demand is typically lower rated than the leisure- or commercial-transient demand that is usually present. Operators appear to be showing more concern, as revenues, particularly from the leisure segment, have slowed this year. Hotel owners and operators are prioritizing operational efficiency over aggressive expansion, with technology and labor strategy emerging as key focus areas amid persistent cost pressures. These pressures include continued high labor costs (management and hourly), elevated insurance costs, brand-mandated PIP renovations, and deferred maintenance. While owners and operators are taking internal measures to control their GOP percentages, they are having to implement additional strategies to lessen the impact of increased insurance costs and taxes on EBITDA. In addition to the higher operating costs across the board, owners are feeling unsettled regarding the uncontrollable expenses. The cost of supplies is anticipated to be affected at some level by tariffs and potential trade deals. Development deals are generally more paused than outright canceled. Key money provided by brands has affected developer decisions, though many brands have elected not to engage in a bidding war, instead standing firm on their long-term value proposition. Representatives for all brands reported that they are extremely busy and appear optimistic; however, privately, they revealed that they are seeing a slowdown, albeit small, and deal closings in multiple segments have slowed due to owner hesitancy resulting from the economic conditions. Unless a project is located in a high-demand, impactful market, some owners are taking a 'wait and see' approach. Overall, the sentiment and outlook were generally neutral, with optimism from some balanced by caution from others. "Uncertainty" was the word that was used most often. There is currently a lot of macroeconomic-related noise. The prevalent tone was 'let's wait a few months,' both to gain some clarity once the tariff situation plays out and to see the final version of the One Big Beautiful Bill that may be passed by the U.S. Senate. Reach out to any of us to learn more. We are happy to do a deeper dive on our experiences and views on the current state of the industry. Let's connect! — Source: HVS About HVS HVS, the world's leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, was established in 1980. The company performs 4,500+ assignments each year for hotel and real estate owners, operators, investors, banks and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of some 60 offices and more than 300 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. View source
Hospitality Net
30-05-2025
- Business
- Hospitality Net
HVS ANAROCK MONITOR, May 2025
Read the latest edition of the HVS ANAROCK monthly industry update, MONITOR (Monthly Overview of National Industry Trends and Hospitality Report), for the key trends in the Indian hospitality industry. Key highlights include: May 2025: In April 2025, the Indian hotel sector continued to post strong year-on-year growth across all major performance indicators. Occupancy rate saw a marginal uptick over March 2025, even as average rates softened during the same period. Mumbai (79–81%) and New Delhi (78–80%) registered the highest occupancy levels during the month, reaffirming their position as the country's top-performing hotel markets. Mumbai and New Delhi recorded the highest average rates during the month, exceeding ₹11,500 and ₹10,500, respectively. Dipti Mohan Senior Manager - Research HVS View source
Hospitality Net
26-05-2025
- Business
- Hospitality Net
Beyond the Winter Escape: Sarasota's Transformation into a Year-Round Destination
Sarasota Hotel Market Trends and Shifts Sarasota has historically been a popular destination for transient winter travelers seeking warmer weather, resulting in heightened hotel demand in the first quarter of the year. This seasonality pattern was disrupted by the COVID-19 pandemic, when Florida's position as a less-restrictive destination resulted in stronger visitation outside of the peak season and into the shoulder months. While demand has normalized somewhat in the post-pandemic period, off-season demand levels remain higher than those of pre-pandemic years. This increased demand is evidenced by the gross tourist tax collections, which are illustrated in the table below. The 6% tourist tax is levied on hotel rooms revenues in Sarasota County. While some normalization in demand has occurred in the post-pandemic period, gross tax collections for all months of 2022, 2023, and 2024 remained significantly above the levels reported in 2019. Average daily rate (ADR) growth is the primary driver of rising hotel revenues, and the entrance of high-rated new supply combined with the popularity of Sarasota as a leisure destination has accelerated this upward trend in the last several years. Gross Tourist Tax Collections for Sarasota County Illustrate Hotel Revenue Growth & Reduced Seasonality — Photo by HVS While the market is known primarily as a leisure destination, particularly in the mild winter months, local entities have successfully marketed Sarasota as a commercial and group destination. Area sports facilities have also attracted swimming, rowing, and equine athletes to the market, many of whom elect to stay in higher-end downtown hotels. Sports-related development in Sarasota includes an indoor sporting facility under construction at Nathan Benderson Park, as well as an expanded training and development facility at Ed Smith Stadium, the Spring Training location for the Baltimore Orioles. The presence of five universities within five miles of the downtown area also bolsters market demand, particularly during move-in periods, graduations, and other campus events. The University of South Florida Sarasota-Manatee campus opened a residence hall in August 2024, allowing students to live on campus for the first time. The Sarasota market is a favorable relocation community in Florida for high-income earners, with developments like the Lakewood Ranch planned community serving as primary draws. Furthermore, the county is home to the top public school district in Florida, which attracts families to the market. Impactful public/private partnership projects, including The Bay park development, Mote Marine Laboratory & Aquarium expansion, Van Wezel Performing Arts Hall redevelopment, also attract residential and commercial relocations to this market. The county is expected to support a population of over 500,000 by 2030 [1], and over 10,000 residences are presently in development. With this population growth, hotel demand is anticipated to be bolstered by new residents seeking temporary accommodations while relocating to Sarasota, as well as by greater numbers of visitors to local residents. Hotel Development in Sarasota Given the market's position as a high-quality leisure destination, in combination with the aforementioned additional demand factors, it is no surprise that hotel development in the greater Sarasota area remains strong despite the current economic climate and the impact of Hurricanes Helene and Milton in late 2024. A sample of hotel projects that are currently underway or were recently completed in Sarasota is listed below. The former Colony Beach & Tennis Resort, a landmark destination known for its tennis-centric focus and laid-back luxury, was demolished in 2018 to make way for the 168-room St. Regis Longboat Key Resort, which opened in August 2024. The property honors the Colony's legacy by incorporating elements of the original resort. The St. Regis features numerous food and beverage outlets, outdoor swimming pools, a lagoon, a lazy river with a grotto, a tortoise enclosure, and a full-service spa. This luxury resort has commanded a strong rate since opening, lifting the overall market ADR. The existing Hyatt Regency Sarasota in the downtown waterfront area is scheduled to close on June 1 and to be demolished in the fourth quarter of 2025. The site will subsequently be redeveloped with a $250-million mixed-use project featuring two 18-story towers. The towers are anticipated to house a 174-room Hyatt Centric Harborside, 224 condominium units, 7,000 square feet of meeting space, restaurants, and street-level retail. While upper-upscale and luxury developments are prevalent in Downtown Sarasota, a number of high-quality, upper-midscale properties are present or under development in the perimeter markets. The 98-room Holiday Inn Express Nokomis opened in March 2024, and the 101-room Comfort Inn & Suites North Venice and 110-room TownePlace Suites by Marriott Fruitville Commons are anticipated to open by year-end 2025. Numerous other hotel projects are in the early stages of development around Sarasota County, including a mixed-use tower featuring a Tapestry by Hilton hotel and residences on Sarasota's Main Street, an AC Hotel by Marriott near Siesta Key Village, and an upscale hotel on Fruitville Road near Downtown Sarasota. Conclusion Sarasota has shed its reputation as a snowbird market and emerged as a destination for the arts, area sports, beautiful beaches, cultural attractions, and high-end lodging. Despite increased concerns of a recession, rising development costs, and higher insurance premiums as a result of the active 2024 hurricane season, the outlook for the greater Sarasota hotel market remains optimistic given its numerous high-quality attractions, international airport with expanding flight paths, growing reputation as a sports destination, and influx of relocations. At HVS, we turn data into powerful insights that drive your success. Our strategic positioning within local markets empowers us to conduct primary interviews with key market participants. This approach ensures we obtain real-time insights and current data for each market we operate in, giving you a distinct competitive edge. For more information about the Sarasota market or for help making informed investment decisions that align with your goals and risk tolerance, contact Hannah McManus of HVS Tampa-St. Pete. [1] Rayer, Stefan, et al. Florida Population Studies, vol. 57, report 198, 'Projections of Florida Population by County, 2025–2050, With Estimates for 2023.' Jan 2024. Retrieved May 2025. Hannah McManus Director with HVS Consulting & Valuation HVS View source
Hi Dubai
29-04-2025
- Business
- Hi Dubai
UAE's Wellness Sector Poised for Growth, Expected to Boost Regional Travel, Experts Say
Wellness is rapidly emerging as a top priority for both travelers and consumers, with the GCC region at the forefront of this growing trend. According to Visa's Senior Vice President Leila Serhan, wellness and lifestyle have surged into the top three categories for which people seek discounts, a shift that reflects broader changes in consumer behavior. Speaking at the Arabian Travel Market (ATM) in Dubai, Serhan highlighted the significant rise in demand for wellness-related experiences. 'In our market survey, wellness and lifestyle, which used to be in the top ten, are now top three things that people want discounts for,' she noted. The ATM, which began on April 28 and runs until May 1, features over 2,800 exhibitors from 166 countries and serves as a hub for the region's travel industry. Experts like Hala Matar Choufany, President of hospitality consulting firm HVS, emphasized that wellness is not only driving consumer spending but also reshaping global travel patterns, particularly toward Europe and the US from the GCC. At the conference, a key highlight was the unveiling of Therme Dubai, a groundbreaking wellness resort set to open by 2028. Located in Zabeel Park, the 500,000-square-foot facility will be the world's tallest wellness resort, designed to cater to 1.7 million visitors annually. The project promises a holistic experience, blending thermal baths, plant-based meals, music performances, and wellness programs into one immersive space. As the wellness sector continues to expand, the rise of such transformative projects underscores its growing influence on both tourism and lifestyle spending in the region. News Source: Khaleej Times
Khaleej Times
29-04-2025
- Business
- Khaleej Times
UAE: Wellness to boom in region, drive travel, experts say
Wellness has become one of the most important factors that has been driving travel across the region and the world, according to commentators at the Arabian Travel Market (ATM) that began in Dubai on Monday. Some noted that it was a segment that would boom in the region. 'The main feeder market to Europe and the US is the GCC,' said Hala Matar Choufany, President of hospitality consulting company HVS. 'It is a segment that is set to grow in this region.' Another pointed out that wellness was an industry their customers were increasingly spending in. 'We see more and more cardholders asking for experiences,' said Leila Serhan, Senior VP at Visa. 'In our market survey we have found that wellness and lifestyle, which used to be in the top ten is now top three things that people want discounts for.' They were speaking at a panel discussion on the first day of ATM, which features a record 2,800 exhibitors from 166 countries at the Dubai World Trade Centre. Taking place from April 28 to May 1, the event is often considered the hub of travel ideas in the Middle East. Therme Dubai Also at the conference were spokespersons from Therme Dubai, the elaborate wellness concept that is expected to be completed in the emirate by 2028. With hanging botanical gardens and hot springs, it is going to be the world's tallest wellbeing resort. In a video shown at an ATM conference, the renderings showed the 500,000 sqft. facility located in the middle of a lake in Zabeel Park. Expected to cater to 1.7 million visitors every year, the wellness resort is a 'social wellness infrastructure' according to Irina Matei, the CEO of Therme Dubai. 'We create ecosystems,' she said. 'We move from old days to new infrastructures. And our guests, they have an amazing journey. They can easily move from a thermal bath to a music performance from a child, wellness programming to a plant-based meal, all in one space. So this is how we engage communities and this is how we see a real shift when it comes to wellness.' A wellness infrastructure company, the Therme Group has a location in Bucharest, with more facilities expected to open across the world. Irina added that the company has been successful in 'democratising wellness' with its offerings. 'Wellness is a force of good,' she said. 'It builds communities and works a lot on the preventive side of things."
