CBRE Hotels Articles

Management Fees

U.S. Hotel Management Company Compensation Slows in 2023 - By Robert Mandelbaum and Tim Dick

As U.S. lodging industry performance decelerated in 2023, so did the amount of fees paid by owners to their management companies. Preliminary results from CBRE's annual Trends in the Hotel Industry survey find that total hotel revenue growth slowed to 6.9% in 2023, while GOP inched up by 3.5%. As a result, total management fee payments rose by just 1.2% during the year, well below the double and triple-digit growth rates seen in the previous two years.

2024-05-06

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Market Report Australia

Australian Hotel Sector to Benefit from Occupancy and Room Rate Growth As Inbound Tourism Recovery Gathers Momentum

Surging inbound tourism will help boost Australia's hotel occupancy levels this year and next while spurring room rate growth in most markets, particularly Sydney and Brisbane, according to new CBRE forecasts.

2024-05-02

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Market Report U.S.

Elevated Costs Meant Total Revenue Growth Failed to Translate into Profits - CBRE U.S. Hotels State of the Union April 2024 Edition

January's total revenue growth of 3.0% failed to offset the 220-basis point contraction in margins, causing a 5.7% decrease in GOP dollars as labor costs from rising wages continued to pressure operating profit.

2024-04-15

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Hotel Operating Costs

Gaining Control of U.S. Hotel Utility Costs - By Robert Mandelbaum and Joe Snider

Over the past four years, utility costs at U.S. hotels have increased at a pace greater than total operating revenue. As a result, utility department expenses increased from 2.9 percent of total revenue in 2019 to an estimated 3.3 percent in 2023. As hotels have

2024-04-02

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Market Report U.S.

Short-Term Rentals Continue Trend of Taking Market Share from Hotels - CBRE U.S. Hotels State of the Union March 2024 Edition

Hotel demand fell 2.0% in January, while short-term rental demand rose 1.3%. Despite taking share from hotels, increasing supply has created occupancy headwinds for short term rentals causing RevPAR to contract 6.6%.

2024-03-12

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Hotel Operating Costs

Hotel Insurance - A Rising Expense With Limited Control - By Robert Mandelbaum and Christopher Nassa

For most U.S. hotel owners and operators, one of the major challenges in 2023 has been the need to control expenses amidst slowing revenue growth. Through September of 2023, the properties in CBRE's monthly survey of hotel operating statements have seen their total operating revenues increase by 7.4% year-over-year, while total operating expenses grew by 10.0% during the same period. The net result was a decline in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of 0.2%.

2024-02-29

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Market Report U.S.

CBRE U.S. Hotels State of the Union February 2024 - Short-term Rentals Continue to Take Market Share

Hotel demand fell 1.6% in December, while short-term rental demand rose 4.3%. Short-term rentals now represent roughly 18.6% of industry-wide market share, up from 15.2% prior to the pandemic.

2024-02-12

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U.S. Investor Intentions

U.S. Investment Activity Expected to Increase According to CBRE

CBRE Issues 2024 U.S. Investor Intentions Survey

2024-01-29

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U.S. Economic Outlook

CBRE Economic Watch: Q4 2023 GDP Exceeds Expectations, Likely Signaling a Soft Landing

While core inflation fell in Q4, jobless claims from a week ago were higher than expected. This illustrates the balance of risks that the Fed must consider going forward. As such, we anticipate the Fed will cut the federal funds rate by May.

2024-01-25

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Market Report U.S.

CBRE U.S. Hotels State of the Union January 2024 - CBRE Now Expects 1.2% GDP Growth in 2024, Eliminating Recession Call

CBRE U.S. Hotels State of the Union January 2024 Edition

2024-01-22

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