New Blog – Nov. 19

YOUR INVITATION TO ACCESS OUR CROWN JEWELS

Welcome to our blog! We’ll break down industry data, offer profitability tips and share expert advice to benefit hotel owners and operators alike.

We’re wrapping up our Crown Jewels video series with our sixth and final step involved in boosting profitability, increasing Net Asset Value (NAV). To get started, a property valuation or Broker Opinion of Value (BOV) should be performed annually. This gives an analysis of what’s happening in the broader transactional market and assesses the property value relative to the market.

It’s also important to research trends that might impact the transaction market. A quick search of Costar will offer a list of other properties that have transacted within the market and reveal how the market is pricing deals along with the cap rates involved.

And remember, it’s important to remain vigilant. Evaluate the hotel’s current position within that market every year, as the hotel market is dynamic and constantly changing. You should always be prepared to sell even if you’re not planning to place the property on the market. This will help ensure your hotel is always in a strong competitive position.

Take a look at the video below for more tips on increasing Net Asset Value.

We’ve now shared with you our six Crown Jewels! If you follow these steps, increasing profitability is well within reach.

Industry News
Starwood Capital Plans $325 Million Transaction & Transformation

Starwood Capital Group has closed a $225 million deal to purchase the St. Regis Princeville Resort on the island of Kauai in Hawaii. The group plans to invest $100 million to reposition the 251-room property as a wellness resort under the 1 Hotels brand and will rename the resort, 1 Hotel Hanalei Bay.

During renovation, the hotel will be called Princeville Resort and will be operated by SH Hotels & Resorts.

The 1 Hotel brand is a luxury lifestyle concept that launched in 2015 and now has properties in Manhattan, Brooklyn and South Beach, Florida. For more on this transaction, read the Hotel News Now article.

US Hotel Data Update

The U.S. hotel industry reported positive year-over-year results in the three key performance areas during the week of 4-10 November 2018. The industry recorded the following:

• Occupancy: +0.7% to 69.0%
• Average daily rate (ADR): +1.0% to US$129.95
• Revenue per available room (RevPAR): +1.6% to US$89.68

Overall, 13 of the Top 25 Markets reported a RevPAR increase.
*Data source: STR

Why Hire Crown Hospitality Consulting?

We leverage years of diverse industry knowledge and attention to detail to ensure you are able to focus on your core business. When you engage Crown Hospitality, it’s our committment to our clients to…

  • Protect your time
  • Minimize risk
  • Maximize return on investment
  • Increase hotel profitability

As your trusted advisor, we are the eyes and ears of your business, ensuring that every aspect of each project is executed with excellence. Let us help you build your kingdom!

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