Hotel & Motel Management - July 7, 2008 - (Page 18) 18 Trends & Stats H&MM July 7, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Rates, occupancy higher in upper tier of all-suite hotels IN THE details All-suite segment divided Supply grows, demand lags Lower-tier sees lower occupancy ADR decreases for both tiers U.S. all-suite chain-affiliated hotels—supply percent change 2004-April 2008 10 Upper tier 8 6 4 2 0.4 0.2 -0.1 3.8 2.9 2.6 2.9 2.9 1.3 2.2 5.2 6.0 5.4 Lower tier U.S. 6.8 7.3 By Bobby Bowers H&MM Columnist ith a few notable exceptions—Embassy Suites, Hyatt Place and Comfort Suites among them—the all-suite hotel category is dominated by extended-stay products. Consequently, all-suite hotel performance trends generally reflect extended-stay performance. When analyzing all-suite performance, it is helpful to break the category into upper tier (including Residence Inn, Embassy Suites, Homewood Suites and Hyatt Place) and lower tier (including W Extended Stay America, Comfort Suites, Value Place and Candlewood Suites). Upper-tier all-suite hotels enjoy significant room rate and occupancy premiums versus the lower tier. A dramatic increase in supply for the all-suite category can be attributed to the growth of brands such as Residence and Homewood in the upper tier. Value Place, TownePlace and Candlewood have added significant new supply in the lower tier. Demand growth in both segments lagged with supply increases and could continue to be a concern into 2009. Lower-tier all-suite hotel occupancy decreased 5.1 percent, based on April 2008 year-to-date data, while the uppertier decline was a more moderate 1.6 percent. During the same time period, total U.S. occupancy fell 2.1 percent. Both all-suite tiers experienced lower than average April year-to-date average daily rate growth. hmm@questex.com Bobby Bowers is senior vice president of operations for Hendersonville, Tenn.-based Smith Travel Research. 0 -2 2004 2005 2006 2007 2008 U.S. all-suite chain-affiliated hotels—occupancy percent change 2004-April 2008 10 Upper tier 5 0 -1.9 -1.2 -3.0 -1.6 -5.1 -2.1 4.0 2.5 4.9 3.3 4.2 3.0 Lower tier U.S. 2.1 1.2 1.5 -5 -10 2004 2005 2006 2007 2008 U.S. all-suite chain-affiliated hotels—average room rate performance 2004-April 2008 150 Upper tier 130 110 90 70 $53.84 $56.48 $61.63 $63.87 $66.53 $105.60 $111.72 $137.09 U.S. all-suite chain-affiliated hotels—occupancy performance 2004-April 2008 90 Lower tier $121.34 $131.87 Upper tier 80 70 60 50 70.8 64.5 73.1 67.2 73.9 68.2 71.7 66.9 Lower tier 70.6 63.5 50 30 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008 U.S. all-suite chain-affiliated hotels—RevPAR percent change 2004-April 2008 15 10 6.3 9.3 9.2 7.9 5.4 1.6 4.9 2.3 2.5 9.9 10.8 9.6 U.S. all-suite chain-affiliated hotels—average room rate percent change 2004-April 2008 Lower tier U.S. 15 Upper tier Lower tier U.S. 8.6 9.1 7.4 5.8 6.1 4.9 4.7 3.5 2.2 2.0 3.6 4.0 4.2 4.7 Upper tier 8.6 4.5 10 8.7 5 0 5 -1.1 -5 2004 2005 2006 2007 2008 0 2004 2005 2006 2007 2008 © 2008 Smith Travel Research http://HotelMotel.com http://www.HotelMotel.com/digital_edition
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - July 7, 2008 Hotel & Motel Management - July 7, 2008 Contents Brands Target Eastern Markets New Peer Network Promotes Innovation Noble Makes Moves Despite Slow Market Perspective Legally Speaking On Finance AAHOA Update Satisfaction Trends Trends & Stats HotelWorld Update Guest Column 2008 Purchasing Survey Refrigerators Transportation In-Room Ammenities Revenue Management Ad/Editorial Index Marketplace Classifieds Checking Out Hotel & Motel Management - July 7, 2008 Hotel & Motel Management - July 7, 2008 - Hotel & Motel Management - July 7, 2008 (Page 1) Hotel & Motel Management - July 7, 2008 - Hotel & Motel Management - July 7, 2008 (Page 2) Hotel & Motel Management - July 7, 2008 - Contents (Page 3) Hotel & Motel Management - July 7, 2008 - Noble Makes Moves Despite Slow Market (Page 4) Hotel & Motel Management - July 7, 2008 - Noble Makes Moves Despite Slow Market (Page 5) Hotel & Motel Management - July 7, 2008 - Perspective (Page 6) Hotel & Motel Management - July 7, 2008 - Perspective (Page 7) Hotel & Motel Management - July 7, 2008 - Legally Speaking (Page 8) Hotel & Motel Management - July 7, 2008 - Legally Speaking (Page 9) Hotel & Motel Management - July 7, 2008 - Legally Speaking (Page 10) Hotel & Motel Management - July 7, 2008 - Legally Speaking (Page 11) Hotel & Motel Management - July 7, 2008 - Legally Speaking (Page 12) Hotel & Motel Management - July 7, 2008 - Legally Speaking (Page 13) Hotel & Motel Management - July 7, 2008 - On Finance (Page 14) Hotel & Motel Management - July 7, 2008 - On Finance (Page 15) Hotel & Motel Management - July 7, 2008 - AAHOA Update (Page 16) Hotel & Motel Management - July 7, 2008 - Satisfaction Trends (Page 17) Hotel & Motel Management - July 7, 2008 - Trends & Stats (Page 18) Hotel & Motel Management - July 7, 2008 - HotelWorld Update (Page 19) Hotel & Motel Management - July 7, 2008 - Guest Column (Page 20) Hotel & Motel Management - July 7, 2008 - Guest Column (Page 21) Hotel & Motel Management - July 7, 2008 - Guest Column (Page 22) Hotel & Motel Management - July 7, 2008 - Guest Column (Page 23) Hotel & Motel Management - July 7, 2008 - 2008 Purchasing Survey (Page 24) Hotel & Motel Management - July 7, 2008 - 2008 Purchasing Survey (Page 25) Hotel & Motel Management - July 7, 2008 - 2008 Purchasing Survey (Page 26) Hotel & Motel Management - July 7, 2008 - 2008 Purchasing Survey (Page 27) Hotel & Motel Management - July 7, 2008 - Refrigerators (Page 28) Hotel & Motel Management - July 7, 2008 - Refrigerators (Page 29) Hotel & Motel Management - July 7, 2008 - Transportation (Page 30) Hotel & Motel Management - July 7, 2008 - Transportation (Page 31) Hotel & Motel Management - July 7, 2008 - Transportation (Page 32) Hotel & Motel Management - July 7, 2008 - Transportation (Page 33) Hotel & Motel Management - July 7, 2008 - Transportation (Page 34) Hotel & Motel Management - July 7, 2008 - Transportation (Page 35) Hotel & Motel Management - July 7, 2008 - In-Room Ammenities (Page 36) Hotel & Motel Management - July 7, 2008 - In-Room Ammenities (Page 37) Hotel & Motel Management - July 7, 2008 - In-Room Ammenities (Page 38) Hotel & Motel Management - July 7, 2008 - In-Room Ammenities (Page 39) Hotel & Motel Management - July 7, 2008 - In-Room Ammenities (Page 40) Hotel & Motel Management - July 7, 2008 - In-Room Ammenities (Page 41) Hotel & Motel Management - July 7, 2008 - Revenue Management (Page 42) Hotel & Motel Management - July 7, 2008 - Revenue Management (Page 43) Hotel & Motel Management - July 7, 2008 - Ad/Editorial Index (Page 44) Hotel & Motel Management - July 7, 2008 - Ad/Editorial Index (Page 45) Hotel & Motel Management - July 7, 2008 - Ad/Editorial Index (Page 46) Hotel & Motel Management - July 7, 2008 - Ad/Editorial Index (Page 47) Hotel & Motel Management - July 7, 2008 - Marketplace (Page 48) Hotel & Motel Management - July 7, 2008 - Classifieds (Page 49) Hotel & Motel Management - July 7, 2008 - Classifieds (Page 50) Hotel & Motel Management - July 7, 2008 - Classifieds (Page 51) Hotel & Motel Management - July 7, 2008 - Classifieds (Page 52) Hotel & Motel Management - July 7, 2008 - Classifieds (Page 53) Hotel & Motel Management - July 7, 2008 - Checking Out (Page 54) Hotel & Motel Management - July 7, 2008 - Checking Out (Page 55) Hotel & Motel Management - July 7, 2008 - Checking Out (Page 56)
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