Hotel & Motel Management - July 7, 2008 - (Page 47) HotelMotel.com | H&MM July 7, 2008 News 47 NYU Notebook Experts question fundamentals By Stephanie Ricca EDITOR IN CHIEF New York–How far down will revenue per available room dip? That was the question at the New York University International Hospitality Industry Investment Conference industry update panel in June. “We really don’t think RevPAR is going to go negative,” said Mark Lomanno, president of Smith Trav- el Research. “Yes, supply is increasing at a time of less demand, but we’re not going to reach the peaks we had in the last two cycles.” Since 2004, Lomanno said the weekend share of lodging demand has been declining. “Weekday demand is up, leading to more revenue generated during the week,” he said. Occupancy decreased 2.1 per- cent and average daily rate was up 4.7 percent April 2008 compared to April 2007, resulting in a 2.5percent RevPAR increase, according to STR. Through April year-to-date, supply increased 1.8 percent and demand was down 0.2 percent in the top 25 U.S. markets, leading to a 2-percent decline in occupancy, according to Steve Rushmore, president and founder of HVS. Lomanno called the luxury, upper-upscale, upscale and midscale without food and beverage segments “the big four,” saying those segments are showing relatively strong demand growth. Lomanno predicted RevPAR to be at 3 percent in 2008 and 2.8 percent in 2009. On the hotel valuation side, Rushmore said the 2008 value per room in the United States will be $91,000—a 4-percent drop from 2007. He attributed the value decline in part to the mortgage crisis, pointing out value per room has dropped steadily since 2006. “This is a very unusual circumstance,” he said. Low-risk markets to invest in include St. Louis; Syracuse, N.Y.; Albuquerque, N.M.; Richmond, Va.; and Buffalo. High-volatility markets include Greensboro, S.C.; Hartford, Conn.; Chicago; Tallahassee, Fla.; and Charlotte, N.C. sricca@questex.com Market Continued from page 4 for Noble. “We raised this fund 15 months ago and now it gives us the opportunity to execute.” Williams said 40 percent of the fund currently is deployed, and Noble is in “acquisition mode,” searching for properties in solid markets that are in need of renovations to deploy the rest of the fund. “The ideal model for us is the C-box in the A-location,” Williams said. “We want to turn it into an A-box. We fix it and put it back in order.” One example would be the W Atlanta-Midtown, a former Sheraton that Williams said sat on “unbelievable real-estate” at Peachtree Road and 14th Street. “The magnitude of a project like that is enormous,” Williams said. The new W was designed by ICRAVE in conjunction with the W design team and features the signature Bliss Spa, Spice Market, Whiskey Park and the W store. There are 466 guestrooms and 33 suites, a fitness center, a pool with cabanas and 30,000 square feet of function space. Closing the acquisition deal took Noble 45 days and converting the property took eight months. “We move very quickly when the opportunities are there,” Williams said. With the stagnation of financing, Williams admits there aren’t too many opportunities available because sellers are afraid to bring their properties to the market. But, he said he still believes industry fundamentals are good. “It’s all related to the economy,” Williams said. “We will have a nominal growth year. But the lodging industry is solid—it will rebound.” jfreed@questex.com CIRCLE NO. 139 http://HotelMotel.com http://www.lodgingconference.com http://www.lodgingconference.com
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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