4 things to know about hotel performance metrics

April 5, 2018

STR’s Jan Freitag (right) shares supply and demand data at the Hunter Hotel Conference. TravelClick’s Sara Duggan (center) and CBRE Hotels’ Americas Research’s Mark Woodworth talked about other hotel performance metrics. (Photo: Stephanie Ricca)

By Stephanie Ricca of www.hotelnewsnow.com

ATLANTA—As the U.S. hotel industry marks eight years of continued monthly revenue per available room growth, analysts are digging deeper into performance data to explain the trends behind these numbers and what hoteliers might expect moving forward.

Analysts shared data at last week’s Hunter Hotel Conference that underscores some of the big-picture trends behind ever-growing demand, the group vs. transient outlook and how economic policy factors in.

1. Demand continues to grow

“The demand number has surprised everyone,” said Jan Freitag, SVP of lodging insights for HNN’s parent company, STR. “It gives us occupancy growth to a record level of 66%. We’re selling two out of three rooms every night.”

Freitag pointed out that demand related to Hurricane Harvey and Hurricane Irma in 2017 played a big role in overall U.S. demand numbers, and added that weather events like these might be part of a new normal, “and we as an industry need to be ready for this.”

Beyond that, Tourism Economics President Adam Sacks predicted a few additional factors contributing new demand on the U.S. hotel industry: international inbound travelers, group business, vacation-starved Americans and people aged 65 years or older spending more on travel.

“Despite some of the data you have seen, international travel to the U.S. was up last year,” Sacks said. “The dollar has eased, supporting further inbound gains. There are emerging middle class and new traveling households.”

He said underlying economic factors support continued demand growth from all groups.

“People are booking more hotel rooms per capita than ever before,” he said. “We expect it to continue to go up because of wealth and income increases. … People are taking fewer full-week trips and more partial-week trips, but both have begun to lift up. We see this as an important inflection point and opportunity for increased demand.”

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CLIA Helpline Question of the Week

Every week, CLIA members call the FREE CLIA Helpline (916.925.2915) with challenging questions about how to run their properties successfully and in compliance with the bewildering array of labor laws, ADA standards and the rest of the regulations that torment our industry.

This week's question was particularly tough. Fortunately, Andrew Sommer at Conn Maciel Carey LLC was able to provide expert advice to our member.

Question:

I own a 37 room property and I have four room types. and three different bed types. Am I required to have an ADA room for each room type and bed type?

Answer:

Given the overall number of rooms, the property is required to have two mobility accessible rooms, one with an ADA tub and one with a roll-in shower. Complete dispersion is likely not possible, so the two mobility accessible rooms should be prioritized by room type (i.e. standard, deluxe, suite, etc.) before they are dispersed according to number of beds, followed by amenities. Both designated ADA rooms must be accessible in all respects.

224.5 Dispersion. Guest rooms required to provide mobility features complying with 806.2 and guest rooms required to provide communication features complying with 806.3 shall be dispersed among the various classes of guest rooms, and shall provide choices of types of guest rooms, number of beds, and other amenities comparable to the choices provided to other guests. Where the minimum number of guest rooms required to comply with 806 is not sufficient to allow for complete dispersion, guest rooms shall be dispersed in the following priority: guest room type, number of beds, and amenities. At least one guest room required to provide mobility features complying with 806.2 shall also provide communication features complying with 806.3. Not more than 10 percent of guest rooms required to provide mobility features complying with 806.2 shall be used to satisfy the minimum number of guest rooms required to provide communication features complying with 806.3.

Advisory 224.5 Dispersion. Factors to be considered in providing an equivalent range of options may include, but are not limited to, room size, bed size, cost, view, bathroom fixtures such as hot tubs and spas, smoking and nonsmoking, and the number of rooms provided.

CLIA lodging members can call the FREE CLIA Helpline at 916 925-2915 with questions about this topic as well as other labor, legal and operational questions.

Connecting Local Community To Your Hotel

by Kelly Chamberlin of Chamberlin Public Relations

Today’s travelers aren’t interested in cookie-cutter hotels. When they’re on the road, they want to feel like they are truly in a destination. Whether or not a hotel must adhere to brand standards or a certain budget, there are plenty of ways to bring a bit of the community into the space. Here are a few examples of what different hotels, both branded and independent, have been doing to make sure guests get a true sense of place.

The Living Stage

Red Lion Hotels’ upscale boutique brand Hotel RL has a dedicated platform for local artists. The “Living Stage” hosts a wide range of performances and interactive activities – from public speakers to musical performances to hands-on demonstrations. In March alone, Hotel Rl Baltimore Inner Harbor hosted a painting event with local visual artist Kris Diggs, Hotel RL Spokane at the Park hosted local writer Kate Poitevin, and the Olyimprov team performed at the Hotel RL Olympia. Because there’s always something different on any given day, guests and locals alike can come back and see something new and interesting.

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Protected Activities That Prevent You From Terminating An Employee

When contemplating the termination of an employee, there are numerous factors to consider.

For example, an employee cannot be released from employment for participating in activities that are “protected by law”, including:

Taking time off to visit your child's school regarding a suspension
Taking time off for a child’s school or child care activity
Taking time off to obtain a restraining order, get care, counseling or to relocate as a victim of domestic violence, sexual assault or stalking
Keeping private arrest records that did not result in convictions
A wage garnishment

Click here for the rest of the list.

2018 Fisher Phillips Firm OSHA Webinar Series

Join Fisher Phillips attorney, Ed Foulke, for a complimentary webinar series dedicated to hot topics in workplace safety and employment law.

May 16 | 11:00am

Topic: Active Shooter

September 19 | 11:00am

Topic: OSHA Walking-Working Surfaces & Fall Protection

November 14 | 11:00am

Topic: Developing Safety Managers Into Corporate Leaders

Click here to register.

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2018 Labor & Employment Webinar Series

Conn Maciel Carey ’s 2018 Labor & Employment Webinar Series , hosted by the firm's Labor & Employment Practice Group , is designed to give you the practical solutions to ensure you are running your business in a way that does not run afoul of the most important labor and employment laws facing our workforce today.

Click here for the full schedule and program descriptions.