The Buffalo lodging market is affected by several unique factors given its location along the Canadian border. In this article, we explore the correlation between Buffalo occupancy and border crossings to the market from Canada, as well as the impact of the exchange rate for the U.S. dollar to the Canadian dollar.
Obtaining leverage through debt financing is key to achieving the desired equity return on a hotel acquisition. The reduced availability and prevailing high cost of traditional loans are forcing buyers to be creative and consider alternative strategies to seize an acquisition opportunity. This article presents a few of these alternatives.
Mixed messages abound these days, comprising some bright spots, some not so bright spots, and some challenges. With no coherent theme, the greatest challenge may be developing a forecast for the industry as a whole. But we are undaunted and herewith present our current expectations for the U.S. lodging industry.
In recent months, it has become clear that interest rates may stay higher for longer. In this article, we have compiled and analyzed historical hotel interest rate data, as well as indications from the Fed on the anticipated direction of interest rates, to provide some context for hotel financing trends.
A capitalization rate (“cap rate”) is a shorthand expression of a given investment’s return and represents the weighted average return to the debt and equity positions. As detailed in this article, hotel cap rates are higher than they’ve been in recent years and are unlikely to decline anytime soon.
The hotel transaction market continues to face significant headwinds. Nonetheless, there are still many good deals to be had, and with some patience and strategy, long-term returns may match or even exceed an investor’s expectations. This article examines and compares current transaction data to historical activity.
Ocean City, Maryland, known for its expansive beaches and boardwalk, welcomes millions of visitors annually. This robust tourism industry fuels a thriving hospitality market, and recent strategic investments underscore Ocean City's focus on providing exceptional experiences for all visitors.
In the ever-evolving hospitality industry, the question of how to effectively compensate hotel operators remains crucial. While the basic premise of paying managers for their management skills holds true, the prevalent incentive fee structures may no longer adequately align with market realities, particularly for owners.
Hotels in Jacksonville, Florida, experienced a robust March, driven in part by an influx of visitors for the 50th edition of THE PLAYERS Championship at TPC Sawgrass. This surge in demand coincided with the entrance of several new hotels into the market, which affected hotel performance metrics.
Las Vegas continues to evolve, with billions of dollars being spent on the development of new world-class venues in recent years. In 2023, occupied room nights, as well as total occupancy (83.5%), continued to lag 2019 performance; however, like gaming revenue, the market’s ADR ($191.29) and RevPAR ($159.73) for 2023 reached record levels for the second year in a row. This article examines the latest trends and developments that are relevant to the Las Vegas casino and hotel markets.