Baird/STR Stock Index Up 1.6 Percent for April 2018
The Baird/STR Hotel Stock Index closed April at 4,864, which was a 1.6% increase from the previous month. Year to date through April, the stock index was down 0.5%.
Manufacturing Growth Continues in 2018; Revenue to Increase 6.6%; Capital Expenditures to Increase 10.1%; Capacity Utilization Currently at 85.8%; Non-Manufacturing Growth Continues in 2018; Revenue to Increase 3.2%; Capital Expenditures to Increase 6.8%; Capacity Utilization Currently at 85.5%
Since 2014, U.S. lodging industry owners and operators have seen a steady decline in the pace of revenue growth. In 2014, rooms revenue per available room (RevPAR) increased by a healthy 8.2 percent according to STR. Per the December 2017 edition of CBREs Hotel Horizons®, RevPAR is forecast to increase by just 2.5 percent in 2018. Facing lackluster revenue growth, hoteliers sights are now focused further on down the operating statement to determine what the impact of slow top-line gains will be on bottom-line profits.
In 2016, the average hotel in the Trends sample spent a total of $76.03 PAR in training costs in the five subject departments. This equates to just 0.29 percent of the total spent on labor costs during the year, and 0.20 percent of total department expenses. Clearly, training is a very minor department expense.
In lodging industry parlance, other operated departments are frequently referred to as minor operated departments. Based on recent trends in other operated department revenues and profits, these sources of income have become less consequential to both the top and bottom lines of U.S. hotels.
This study presents the current lending environment for hotels. It consists of four topics, (1) lending parameters, (2) availability of debt by project and chain-scale segment, (3) loan characteristics, and (4) an outlook on lending criteria.