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Positive News for US Hotels: 2011 Performance, 2012 Forecast

February 27, 2012 at 9:06 pm | Posted in Uncategorized | Leave a comment

So, did you hear the good news? The U.S. hotel industry reported increases in all three key performance metrics in 2011, according to data from Smith Travel Research (STR).

Overall, the U.S. hotel industry’s occupancy rose 4.4% to 60.1%, its ADR was up 3.7% to $101.64 and RevPAR increased 8.2% to $61.06.
2011 was the first time since 2008 that the industry ended the year with occupancy of more than 60% and an ADR of more than $100. U.S. hotels reported a 0.6% increase in supply in 2011 and a 5% demand increase for the year. Demand has increased 5% or more only three times since 1987.
“2011 was a strong year for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “Room-supply growth continued to drift downward as room demand reached record levels during the year. Though occupancy and ADR were still below 2007 and 2008 levels, it was still encouraging to see the industry experience a solid rebound during a period of considerable economic difficulties.”
The U.S. hotel industry is expected to report steady RevPAR increases in both 2012 and 2013, according to the most recent forecast from STR in partnership with Tourism Economics.
Overall in 2012, the U.S. hotel industry’s occupancy is expected to rise 0.5% to 60.4%, its average daily rate is projected to be up 3.8% to $105.45 and its revenue per available room is planned to increase 4.3% to $63.68.
“2012 may prove to be challenging for the U.S. hotel industry,” said Randy Smith, co-founder and chairman at STR. “There are a number of issues that will confront the industry and overall economy this year. We believe that given how well the hotel industry did during 2011, it will be difficult in 2012 to show significant growth. However, we remain optimistic the industry will continue to report modest increases in 2012.”

So, how did your business fare in comparison? As you know, each region and individual hotel can vary greatly from these national statistics. Many of the hotels that I work with were performing well ahead of 2010 until December. The lack of snow hurt the December 2011 performance and continues to reduce room demand in 2012.
Thinking of Selling?
At CenterPoint, we have seen a significant increase in buyer activity. Inquiries on all types of businesses are at a higher level than we have seen in years. Other business brokers are experiencing the same increase. This is a great sign for any hospitality owner thinking about exit options.
If you think it may be time for you to retire, or move on to other ventures, I encourage you to call or email me to talk further about an exit from your business.

O.J. Robinson of CenterPoint has many years in the hospitality industry in New Hampshire. He is the former owner of Parker’s Motel in Lincoln and is one of the owners of the Whale’s Tale Waterpark in Lincoln. He has provided consulting, exit planning, and brokered the sale of numerous lodging properties of various sizes. oj@cpointadvisors.com

NHGA Conference

October 14, 2010 at 6:59 pm | Posted in Uncategorized | Leave a comment
Tags: NHGA Grocery

As I left the NH Grocer’s Association annual conference last week, I had two initial reactions:

1. This was a great opportunity! The independent operators seminar was extremely informative. The law firm of McLane Graf, Raulerson & Middleton covered the topics of group purchasing, the new health care law, and planning an exit from your business. This was followed by a group discussion, led by John Dumais, regarding issues faced by store owners. One topic that brought much participation related to choosing an electric supplier for your business. Every participant left with good ideas and a better knowledge of the issues related to health care and exit planning.

2. Why weren’t more store owners present? Sure you have a business to operate. That keeps you plenty busy. Sometimes it is necessary to work smarter, not harder. This conference provided a great opportunity to meet other store operators who share the same challenges, concerns, and problems that you do. This conference provided the perfect atmosphere to build relationships with, and learn from, other store operators.

The NH Grocers Association exists to benefit those in the grocery business. Even the members that stay at their store and do not participate benefit from the legislative work and other programs that the NHGA offers. However, the members that participate and attend the conference certainly benefit more.
As next September rolls around, I encourage grocers to make a commitment to register and attend this informative conference. It will benefit you and your business.
Do you know the value of your business? In the seminar discussion about succession planning, this was one of the main points the presenters made. Most business owners do not know the value of their business, yet this is the first step in planning an exit from your business. And every business owner should be planning for an eventual exit, unless your goal is be to be the richest person in the cemetery. CenterPoint can help you determine the value of your business and point out ways to increase that value and prepare your business for sale.

What’s on Your Website

September 22, 2010 at 5:35 pm | Posted in Uncategorized | 1 Comment

I have viewed the websites of many New Hampshire and Vermont lodging properties and have found many cool, interesting sites and some boring, difficult or outdated sites. Where does your site stand? Now that summer is over, take some time to review your own site, compare it to others, and work to improve it. Here are some items to check for:

1. Correct Information. One NH motel has a good website design, but the e-mail address on the home page is incorrect. Another resort has a link to their menus. Clicking on “Breakfast” leads to their dinner menu. “Dinner” also leads to the dinner menu. I guess I’ll have the Prime Rib for breakfast. Check your info, rates, links, etc.

2. Up-to –Date Information. Get rid of your 2009 ski packages or 2009 spring wedding specials. Are your rates, descriptions, packages, and special events up to date?

3. Dead Ends. Does your site lead to dead ends? Every page should have links to additional pages. “Contact Us” and “Book Now” should be on every page. Don’t let your potential customer go to a page with no additional page links. This gives them the option to go back to the previous page (which is now old news), or leave your site. Don’t give them this choice!

4.Keywords, Search Engine Optimization, Meta-tags, Adwords. Work with website design experts to make your site more visible to people searching on the web. Hotel/Motel searches are one of the most competitive themes on Google. Pretend you are a potential customer and search for lodging in your area. Where does your business come up in a search?

5. Google Analytics. It is important to know how people are getting to your website and where they are going on your website. Which pages are most often viewed? How long do viewers spend on each page? Where are you getting referrals from? Google analytics and other similar tools can help you understand how viewers are using your site.

6. Appeal & Functionality. Is your site easy to navigate? Informative? Are the room descriptions and prices on the same page? Or do viewers have to bounce around the site to get this info? Can the consumer book easily online? Your site should be as easy and informative as possible for the consumer. Does the quality of the website reflect the quality of your business? A blurry picture that you took yourself might suggest that you also fixed the plumbing leak yourself to the same standard. Your website is a reflection of your business!

Websites should be only one part of your online presence. Social media and blogs have become essential. The following chart shows the overall online activity for various segments of the tourist industry. Keep in mind that this shows “activity”, not direct bookings or inquiries.