HVS · 28 Jun
Gone are the days when travelers sought accommodations using the local newspaper or telephone directory, picked up the phone and called to make a reservation. Hospitality sales and marketing in the 21st century is a much more vibrant, complex activity, populated by multifaceted stakeholders at every level of the industry.This is complemented by a proliferation of new brands, ever-increasing rivalry, and a race to introduce new tools before competitors do.
HVS · 17 May
Independent, budget motels are often operated by resident owners that are talented at running efficient, safe motel operations but lack sophisticated and complete financial models that generate proper reports upon which to base purchase and valuation decisions. It is important for a buyer to understand that available financial information may not tell the full story, and relying solely on what is available may sell short the profit potential of the hotel and, ultimately, its true value. In Part 1 of this series, I discuss the importance of deriving a proper revenue estimate and testing its reasonableness against the norms for the neighborhood and market.
HVS · 16 May
At the most basic level, the value of a hotel is based on the property’s net income divided by a capitalization rate. As such, one has two possible levers to adjust as a means of increasing a property’s value: either increase the property’s net income or decrease the capitalization rate.
HVS · 21 Mar
The hospitality industry is changing, and is rapidly becoming super high-tech. While we can argue that this benefits guests—and it certainly benefits vendors—how much is it taking away from the guest's personal experience? Theoretically, it should improve the customer experience, particularly through the use of data collected by using the various technologies. Let's look at how guests actually feel, especially the Baby Boomers who look set to remain the most prolific travelers for the next two to three years, and see if the numbers support the theory that technology has improved the hospitality experience.
HVS · 19 Apr
This article reveals how spa and wellness aspects are disseminated throughout the whole guest experience, and how wellness motivated design and construction elements complement property development, enhance marketability and engagement and is spurring new growth across the hospitality sector. This article also examines how critical management adjustments, and product and service enhancements can significantly add value, increase RevPAR and improve average daily rate performance.
HVS · 18 Apr
Hotel Food and Beverage (F&B) operations increased in revenue value by 4.9% during 2017, according to a report from STR. This is clear evidence that F&B is still an important revenue stream, second to accommodation income, but it is profitable only if companies optimize the way they operate the division.Outsourcing is a popular way to take the problem off a company's plate, but is it necessarily the best option for their hotel and bottom line? At HVS, we believe that profit should not be the primary motive and that the main reason for having food and beverage facilities in a hotel is to enhance the Rooms Division revenue. This enables the hotel to offer dining facilities for guests, while the restaurant benefits from access to a continuous stream of potential diners.With demand expected to remain strong enough to deliver growth of 5% in 2018, it is clear that maintaining the F&B function is still a viable strategy for most hotels. The question is: How do hotels maximize their profits from F&B while simultaneously ensuring they provide quality service to complement their other offerings?
HVS · 6 Apr
Opponents of artificial intelligence (AI) have long predicted the time will come when robots take over the jobs of human employees. That day has arrived, with a number of food service companies using technology in previously human-filled roles.
HVS · 3 Jan
This article reviews the impact and importance of integrating these systematisations to help stimulate and streamline the functionality and profitability of hotel and resort spa operations. Retooling the focus from manually centered services and embracing advancements in new technologies to support sustainable profitability and continued growth.
HVS · 14 Sep
The selection of an appropriate franchise affiliation affects a property's ability to compete in its local market, generate profits, and achieve a desirable image and market orientation. Because the success of a hotel is based primarily on the cash flow generated, owners and lenders must weigh the benefits of a brand affiliation against the total cost of such a commitment.
HVS · 10 Aug
Technology and automation are making exponential headway touching nearly all sectors of hospitality, including spa and wellness. This article reviews the impact and importance of integrating these systematisations to help stimulate and streamline the functionality and profitability of hotel and resort spa operations. Retooling the focus from manually centered services and embracing advancements in new technologies to support sustainable profitability and continued growth.
HVS · 3 Aug
The workplace is experiencing a dramatic evolution as Millennials begin replacing Baby Boomers at an exponential rate. According to the Bureau of Labor Statistics, by 2025 Millennials are estimated to represent three quarters of the workforce. As a result, there has been a disruption of traditional company culture that isn't exclusive to advancements in digital technology. In many companies, what began as a "water-cooler" culture is being replaced with a high-end cappuccino machine and meditation room. Workers now expect more comforts, more conveniences, and better opportunities for advancement than ever before. They also demand that their company of choice have a heart, give back to the community, and promote empathy and inclusion.In exchange for an enhanced work environment, employees can sometimes expect to spend longer hours in the office and tied to a mobile device, albeit with a flexible schedule. Largely employees once experienced an "in and out" office-based occupation, with formal dress in roughly a 9 to 5 environment. Now there is an expectation of a relaxed office culture featuring casual dress, good food, a social conscious, and fun.Some changes we have observed in an office environment are as follows;