College students Share Their Volunteer Expertise, Half One
Written by: Jatin Khemlani
This was my first expertise at HITEC as a scholar volunteer and what an incredible week I had in Orlando. 2022 marked the fiftieth 12 months anniversary of HITEC, an occasion the place companions within the finance and expertise sectors of the hospitality trade come collectively to showcase how they assist the trade and produce the visitor expertise to the following stage when touring, staying at a resort and even simply putting an order at a restaurant.
As a scholar volunteer and hospitality main, I acquired to expertise much more than what I had anticipated. Throughout this week, we had been assigned to completely different duties and tasks across the conference middle, from registration to training classes to exhibitor tutorials carried out by completely different distributors. This chance helped many people acquire expertise on the service facet of the trade by permitting us to work together with, serve and help in getting their credentials and answering a few of their queries.
Concerning the Schooling
On the primary day of the conference, I attended a few training classes. The primary was“The Crypto NFT Resort: A 101 Strategy to What It Is and How It Applies to Hospitality,” as I used to be intrigued on how crypto would have an effect on the hospitality trade. Through the session, an attendee posed a query to the panel on whether or not there can be expertise or a service sooner or later to assist hospitality corporations settle for crypto/NFT funds and convert these currencies right into a greenback quantity in actual time, contemplating the volatility of the worth of crypto/NFT foreign money. It’s only a matter of time when such a service will probably be out there for the hospitality trade, however the actual query is how resorts and the trade will adapt to just accept such a service.
One other session I attended was“Information Science for Smarties: Information is Key, and You Are Behind…Time to Catch Up”led by Rik van Leeuwen from The Netherlands. The surroundings we stay in now could be principally powered by expertise, and knowledge is all the things. Firms use all types of knowledge for making choices to not solely transfer the corporate ahead but in addition transfer the trade ahead as an entire. Resort operators, restaurant managers and airways are extra centered on operations and repair than knowledge assortment and evaluation. Leeuwen shared on how vital it’s to gather this knowledge and dissect it for corporations to know what is going on inside their enterprise. He even talked about hiring employees to do such work or a third-party vendor to carry out such providers, as value is usually a consider producing such data-focused experiences . Moreover value, the validity and accuracy of knowledge is vital: would corporations need to take the chance of hiring employees internally or outsource this service to consultants who’ve the expertise and the right instruments and expertise to transform the info safely, precisely and effectively?
Attending each classes actually opened my eyes to how expertise has impacted the trade from a monetary perspective and has helped administration change the way in which they handle their operations of resorts, eating places and airways.
Concerning the Exhibition
Moreover attending the training classes, the HITEC Exhibit Corridor was stuffed with many nice corporations showingcasing their services and products. I’ve by no means seen this many corporations offering a variety of services and products to the hospitality trade. There have been some acquainted corporations which I knew and plenty of new corporations which I acquired to study their providers. By no means did I think about seeing this many corporations offering knowledge safety, knowledge administration, property administration system (PMS), world distribution system (GDS) and visitor expertise options. Strolling across the displays and seeing the software program, expertise and merchandise provided to the trade was unimaginable. It was additionally nice to learn the way massive corporations corresponding to LG and Samsung are dedicated to working with trade companions to create new expertise and person interfaces (UI) that might improve the visitor expertise and assist corporations present a greater model expertise for his or her visitors and prospects . Firms like Venza and SkyPoint Cloud work tirelessly within the background to supply knowledge safety administration providers and buyer knowledge options to hospitality operators and don’t get the popularity and publicity they deserve from visitors and prospects.
HITEC isn’t solely a conference however a spot for the trade to community — and as a scholar, it is a excellent alternative for us to study extra in regards to the trade from veterans and take the chance to listen to about their experiences. There have been many after-event features all through the week that the scholars had been invited to attend, community and study extra. A particular due to the numerous corporations who invited us to their after-convention occasions. These features allowed college students to community and converse to many professionals in a extra relaxed ambiance with out the concern and pressure of being overly skilled.
Total, I had an incredible week attending HITEC 2022. I used to be in a position to expertise engaged on the entrance line, interacting with and serving to in any manner I may from registration to directing them to completely different academic seminars. I realized in regards to the completely different corporations concerned in hospitality and the services and products they’ve to supply, particularly the brand new expertise and software program being developed with AI and crypto.
I wish to take this chance to thank my professors at San Jose State College and HFTP for giving me and the opposite scholar volunteers the chance to attend and volunteer at this conference. A particular due to HFTP Director of Membership Brittany Brewster for being an incredible level of contact throughout the conference. I look ahead to working with HFTP sooner or later, attending HITEC 2023 in Toronto and its future occasions past 2023!
Jatin Khemlani is a hospitality scholar at San Jose State College and scholar volunteer at HITEC Orlando 2022. He’ll graduate Fall 2023 with a level in hospitality tourism and occasions administration.
Be a part of Your Fellow Hospitality Professionals On-line in New HFTP Neighborhood Teams
By: Mark Pate Sr., CHAE, CHTP, MBA, HFTP International President
Are you searching for that subsequent position to take your profession upwards the place you need it to go – or maybe looking for to fill a vital position at your organization with the precise particular person? Are you attempting to unravel a seemingly insurmountable drawback at work – or simply questioning if there are different folks on the market fighting an {industry} problem such as you? The perfect reply usually lies in constructing connections.
Because the president of an affiliation, I realized way back the worth of getting concerned in a bunch of execs in the identical {industry} and discipline of labor who can share in your trials, tribulations, successes and progress as you make your method by way of a decades- lengthy profession journey. Associations are an important basis for creating these all-important relationships; they supply numerous alternatives for networking and engagement.
Take HFTP, for instance – I simply joined greater than 6,000 hospitality professionals and stakeholders at HITEC, the most important hospitality expertise occasion on the earth, the place I spent a number of useful days attending events, dinners, schooling classes and toured the exhibit corridor with colleagues and pals , each new and previous. I’m additionally very engaged in my native HFTP chapter and attend the HFTP Florida Regional convention often, which permits me to attach with professionals in my direct space.
Then, there are all the net alternatives to have interaction, and with a strong, international membership, meaning numerous potential new supporters from all around the world – and that is the place HFTP’s new on-line Neighborhood Teams are available in very useful. These neighborhood teams assist you to have interaction in discussions and Q&A based mostly on particular segments of the {industry} corresponding to lodge and membership and matters {of professional} curiosity corresponding to expertise and finance.
Be a part of Your HFTP On-line Neighborhood for Camaraderie, Suggestions and Options in Three Straightforward Steps
Step 1: Ensure you have entry in your pc and cellphone. To get to your HFTP neighborhood teams on on-line, you should be logged into your HFTP on-line account. Go to www.hftp.org to create your account or log in. I additionally encourage you to obtain the HFTP Membership & Occasions app to entry the neighborhood teams proper out of your cellphone! Seek for the app within the Google Play and Apple shops.
After you have it put in in your cellphone, select the HFTP Member App inside the checklist of guides to attach with different members within the HFTP Neighborhood Teams, handle your membership, get the newest HFTP information, message inside the app and extra.
Step 2: Electronic mail [email protected] to request admission to the HFTP neighborhood group(s) you need to be part of. Which industry-focused dialogue do you need to be part of? There are at the moment three teams arrange so that you can select from: Membership Skilled Change, Lodging Finance and Lodging Know-how.
If you’re a member of an area HFTP chapter or affiliation advisory council, it is possible for you to to hitch these choose, invitation-only neighborhood teams, as properly.
Step 3: Get engaged! When you turn out to be a member of your neighborhood group of selection, begin connecting. Ask questions of your fellow hospitality professionals, or lend sage recommendation to another person. That is your alternative to get to know most of the professionals working in direction of comparable targets within the nice hospitality {industry}.
Hope to see you within the dialogue quickly!
Mark Pate Sr., CHAE, CHTP, MBA is the HFTP International Board President and assistant controller & IT director for Highpointe Lodge Company.
Inns can’t forcibly acquire service prices from clients, says senior official
“Charging service prices from clients will now value the resort and restaurant house owners. If a buyer needs to pay a service cost of his personal free will, then it’s a completely different matter however resort house owners can’t forcibly acquire service prices from clients,” Further Secretary within the Authorities of India (Client Affairs), Nidhi Khare informed ANI.
She additionally knowledgeable that the authorities have launched a helpline quantity ‘1915’ for the shoppers.
“If a buyer is a sufferer of extortion, then the Nationwide Client Safety Authority has issued a helpline quantity for such clients for complaints, which would be the helpline quantity 1915,” she added.
Khare discovered it stunning and referred to as it double prices on clients.
“Service cost is added to no matter meals is served after which GST tax is levied on the overall quantity which is a double whammy on the purchasers,” she famous.
The rules issued by CCPA on Monday stipulate that resorts or eating places shall not add service prices robotically or by default to the meals invoice. No assortment of service cost shall be executed by some other identify. No resort or restaurant shall power a shopper to pay a service cost and shall clearly inform the buyer that the service cost is voluntary, elective and on the shopper’s discretion.
No restriction on entry or provision of providers based mostly on a set of service prices shall be imposed on shoppers. The service cost shall not be collected by including it together with the meals invoice and levying GST on the overall quantity. The rules might be accessed by clicking on the hyperlink.
How the Hospitality Business Can Battle “The Nice Resignation”
Written by: Sheheryar Javaid
This text is not going to contact on the influence “The Nice Resignation” has had on the hospitality {industry}, as we’re properly conscious — the main target will as a substitute be on what actions we will take to battle it. Cash shouldn’t be the reply. Many lodge homeowners and operators do not need a lot cash left after the pandemic, anyway. Fortunately, there are a lot of elements that workers are searching for in addition to elevated pay (though it could be good!).
The aim of this text is to focus on a few of these elements and supply a roadmap on how options could be carried out to draw and retain workers. However earlier than we dive into them, there may be one essential factor that resorts want to begin doing extra: really discuss to the workers and hear to know how they really feel and what they want. Employers ought to repeatedly search worker suggestions on what makes their life tough and what options they’ve to enhance it. A constructive suggestions loop will make sure that the setting is simply bettering sooner or later.
Some workers will really feel extra comfy to share anonymously by way of surveys. However most significantly, administration must create an open communication coverage to enhance belief. Many workers don’t really feel comfy sharing what’s on their thoughts with their managers, however this wall must be damaged, through the use of a number of the concepts talked about under.
Get Possession Purchase-in
Accommodations have turn out to be profit-generating investments for all types of possession teams, whether or not it’s a person or a financial institution. So it’s on administration to convey the true monetary influence of re-training new workers and the price of having a burned-out crew. This could generate potential added worth, akin to higher visitor critiques resulting in an elevated ADR.
The administration crew should develop a persuasive proposal with a direct ask and concisely state the issues and options, with their related prices and advantages.
Subsequent, listed here are some examples of what resorts can do to turn out to be a greater place to work.
Make investments Time and Vitality into Tradition
- Consider the Organizational Construction: “Do we now have managers that care about our workers?” This is likely one of the most important the explanation why workers go away their jobs, so it should be evaluated. For instance, acquire suggestions by way of an nameless worker satisfaction survey the place the outcomes are clear to greater degree administration and possession.
- Profession Improvement and Recognition Packages: Anybody can Google a listing of concepts right here, however the perfect factor can be to ask workers what they want and sincerely give particular recognition.
- Making a Enjoyable and Collaborative Tradition: Encourage creativity by way of month-to-month crew constructing occasions like paint nights with wine. Incorporate wellness by way of common yoga/meditation courses. Reward sharing, contests, a birthday wheel — these are additionally good methods to combine and encourage completely different generations. How a lot would these actually price?
- Connectivity: We will be taught from the startup world, who’re consciously making an attempt to create nice work environments. It may be easy issues akin to connecting their workers by way of platforms like Slack. Many resorts have their in-house communication programs, however this may be an choice for particular person departments or unbiased resorts.
- Better Functions: Introduce initiatives to handle sustainability, akin to calculating the carbon footprint from procurement and setting benchmarks, or discover methods to assist the area people.
Conclusion
Despite the fact that the hospitality {industry} has been hit the toughest, we have to pave the way in which for the restoration. This may be seen as a chance to scale back conditions the place individuals are pressured to work till they burn out, and as a substitute, create alternatives for the precise folks to thrive in roles which might be suited to them. McKinsey calls this “The Nice Attraction”. Take a step again. Pay attention. Study. Perceive. Make the modifications that workers need. And measurement the chance. This could result in an industry-wide innovation of worker tradition.
There isn’t a purpose in charge the pandemic or the overworked workers for leaving. If resorts see the chance to make their property an important place to work, they may have the ability to entice the many individuals that also love the {industry}. Some have jumped to monetary companies and retail, however there’s something particular a couple of hospitality setting that you just can’t discover anyplace else. Creating this tradition is what we must always concentrate on.
Everybody has a task to play within the restoration. House owners have to speculate and perceive the state of affairs. Administration wants to higher hearken to their workers and assist them. And workers have to voice their considerations and use their concepts to co-create the precise tradition. We’d like this now greater than ever.
This weblog put up obtained Third Place within the Spring 2022 HFTP/MS International Hospitality Enterprise Graduate Pupil Weblog Competitors introduced by the HFTP Basis. Individuals are college students taking part within the Grasp of Science in International Hospitality Enterprise, a partnership between the Conrad N. Hilton Faculty of International Hospitality Management on the College of Houston, the College of Resort and Tourism Administration at Hong Kong Polytechnic College and EHL. The weblog posts that obtained the highest scores will probably be printed on HFTP Join by way of August 2022. Study extra at HFTP Information.
Sheheryar Javaid is a accomplice on the Hyatt Place Toronto/Mississauga Heart in Ontario, Canada and up to date graduate of the Grasp of Science in International Hospitality Enterprise program, which is in partnership of three faculties: EHL, the Hong Kong Polytechnic College, and College of Houston.
References
How The Industries Of Journey & Meals Can Profit One One other In A Submit-Pandemic World
Tim Hentschel, Co-Founder & CEO of HotelPlanner
Tim Hentschel, Co-Founder & CEO of HotelPlanner, is somebody who lives and breathes journey. He launched HotelPlanner.com in 2003, on the peak of the dot-com period after an informal dialog over beer on what the largest problem to reserving resorts was for vacationers on the time.
Quick ahead to in the present day, the journey expertise firm is among the world’s high facilitators of particular person, group and company bookings, specializing in negotiated group lodge charges, prolonged stays and extra for every little thing from weddings to sporting occasions. This reserving empire gives a world portfolio of over 50,000 resorts, and continues to thrive, regardless of large setbacks within the journey house as a consequence of Covid.
Although the world noticed a lower in journey, HotelPlanner surprisingly not solely continued to obtain buyer calls, however extra so than in years prior. In response, Hentschel determined to launch a world gig-based journey agent reservations platform the place distant brokers can take buyer calls from wherever, at any time. Thus permitting prospects the flexibility to talk with precise folks, reasonably than chatbots or pre-recordings.
Hentschel at present lives in Singapore, however has traveled extensively the previous a number of months together with prolonged stays in Manila for the World Journey & Tourism Council International Summit and New York Metropolis for the NYU Hospitality Funding Convention, the place he was a speaker.
“As we come out of the pandemic, the largest barrier to journey now stays the ever-changing, complicated and complicated Covid testing, vaccine documentation, and quarantine necessities between nations, particularly within the Asia-Pacific,” explains Hentschel.
The brand new journey norm.
“With regards to culinary journey, in Asia-Pacific, Covid remains to be negatively affecting eating places and bars probably the most, provided that they’re a couple of 12 months behind of their restoration in contrast with remainder of the world. Nevertheless, in Europe and the Americas, most individuals have returned to crowded bars and eating places with out masks. In a room of 100 folks, you may even see just some nonetheless carrying masks.”
Based mostly on all of his latest journeys, we chatted with Tim Hentschel, Co-Founder & CEO of HotelPlanner, on all issues journey, together with the way it’s been affected by Covid and sensible recommendation for the typical traveler; how the journey and meals industries can strengthen each other in a recovering post-pandemic world; silver linings and extra. This is what he needed to say.
Do you suppose that variances in Covid restrictions is a deterrent? What do you see as discouraging for the typical traveler to journey overseas proper now?
. . . There are various residents in Asia-Pacific who merely aren’t touring till it turns into a lot simpler between nations. Europe is now beginning to actually take off with EU journey, and is prone to have a powerful summer season journey and August vacation season. Along with 40-year excessive inflation and about 20% larger prices for flights and resorts, the #1 disincentive for inbound vacationers to the US is the 24-hour Covid testing requirement that the US authorities nonetheless has in impact.
The US service trade is dropping hundreds of thousands a day in unrealized income from inbound vacationers who’re nonetheless holding off on their US journeys. Hopefully the US authorities will take away that testing requirement. After they do, will probably be an enormous catalyst for inbound journey to American shores.
Now that we’re getting previous the worst of the pandemic (hopefully), what do you see as the brand new norm of worldwide journey?
The brand new norm for worldwide journey will in all probability embrace having to obtain numerous apps to add your vaccine documentation and Covid take a look at, and the complicated and complicated means of touring nation to nation with disparate insurance policies. I believe issues will easy out so there’s parity and predictability between nations, however in all probability not till 2025.
Cellular app in telephone to indicate covid-19 take a look at outcomes for journey.
My recommendation is to analysis the most recent Covid insurance policies for every nation alongside your itinerary. Work out what documentation or app it’s worthwhile to use. Get your paperwork so as. Apart from Covid, with a lot pent-up demand, I counsel all vacationers to e book their journeys as far upfront as doable to make sure availability, but in addition to lock in a decrease price.
When it comes to planning a serious journey my high three suggestions embrace reserving early, researching every nation’s Covid protocols (however checking for any last-minute modifications) and contemplating journey insurance coverage, however learn the advantageous print.
Do you discover that Covid restrictions and protocol have put a damper on leisurely actions for the traveler?
The reply relies on what nation you are speaking about, however normally, the final two years have been very powerful on leisure journey. Most every little thing within the leisure house was canceled or made digital. The excellent news is that leisure journey is main the globe’s restoration as hundreds of thousands at the moment are touring to go on that epic or unique trip they’ve all the time dreamed about, or to get married or attend a marriage, or simply to attend a stay occasion like a Broadway present in NYC, or to lastly take their youngsters to Disney World.
With regards to ingesting and eating particularly, what are the variations amongst numerous nations and cities you see?
Individuals nonetheless need to drink and dine in teams, not alone. We’re social beings. However what I’ve seen alongside my worldwide travels is an absence of transparency and consistency with Covid protocols. For instance, masks could also be optionally available within the lodge foyer, however you continue to have to indicate proof of vaccine to get into the lodge restaurant. That does not make sense. Or perhaps it is a hospitality convention I am attending and the town has already eliminated its indoor masks or vaccination coverage, however the convention organizers or the convention venue are nonetheless requiring proof of vaccine.
Culinary journey.
Has culinary journey taken successful?
Culinary journey was impacted simply as a lot as some other leisure exercise. Throughout Covid, if a foodie wished to expertise unique delicacies, they in all probability needed to order it for native supply or cook dinner it themselves at dwelling.
Within the US, I’ve seen a major uptick in advertising and marketing and occasions for Brewery and Vineyard excursions, Meals excursions, and Meals and Wine and Beer Festivals. Culinary occasions are all returning robust. Each the restaurant and journey industries have actually been disrupted with Covid.
Is there a silver lining wherever?
If there’s any silver lining with Covid, it compelled eating places and journey firms to innovate and evolve, work with skeleton crews, and rent and fireplace extra rapidly and neatly. Hopefully, the everlasting change is far cleaner eating places, resorts and occasion areas. The everlasting modifications are: Enhanced cleansing, higher air filtration methods, and hand sanitizer stations all over the place.
What are some methods you see the 2 industries of meals and journey coming collectively in new, fruitful methods due to what has occurred?
Eating places and resorts and stay occasions are three pillars of the service trade, the fourth pillar of being the airways. They should work extra intently collectively now as a result of they depend upon one another for survival. For instance, a lodge or restaurant might must hire out its occasion house extra typically to stay worthwhile. And the occasion organizers want extra distinctive and versatile resorts and eating places to host their occasions. It is a symbiotic, mutually helpful, interdependent relationship.
Has Covid turn into a catalyst for optimistic change in any means that you simply see?
The optimistic change for the whole service trade, which was hit the toughest, is that they’re now main the globe’s post-pandemic restoration. And I believe plenty of trade executives are realizing that ‘we’re all on this collectively.’ I believe it will lead to extra firm partnerships that the world has by no means seen earlier than. Motels partnering with eating places. Eating places partnering with airways. Stay occasion organizers partnering with resorts, and many others.
Meal served on board of airplane.
What have been a few of your favourite eating experiences across the globe?
The delicacies in Singapore is famous and my household and I’ve actually loved increasing our culinary palettes the previous two years whereas we lived there. Now that I’ve relocated my household again to London, I am wanting ahead to genuine British pub fare like Fish & Chips; Bangers N’ Mash, or Sheperd’s Pie. And the Indian delicacies in London is world well-known too. However to reply your query immediately, a few of my favourite eating experiences across the globe had nothing to do with the meals, and had extra to do with the chums or household or enterprise companions I used to be with. Who you dine with could make all of the distinction.
What are your present favourite eating places?
Present favourite restaurant for date evening is the Quilon on the Taj Buckingham Gate in London and with the children, it is Benihana’s.
As Occupancy Stalls, Parking Drives Hotel Revenue Growth
By Robert Mandelbaum and Todd Casper
Based on the February 2023 Hotel Horizons® report, CBRE is forecasting that total hotel revenue for the average US hotel returned to pre-COVID levels in 2022. This occurred despite the fact that the average occupancy for US hotels is not expected to exceed 2019 levels until 2026.
With occupancy levels lagging during the post-COVID recovery and guest counts depressed, hotel owners and operators have had to look for alternative sources of revenue beyond the rental of guest rooms to make up for the income deficits. For some hotels in the US, parking has become a profitable source of revenue since COVID and helped fill in the revenue gap.
The increase in parking revenue has occurred, in part, because an increasing number of hotels started to charge guests for on-site parking. In 2019, 17.0 percent of all the hotels in CBRE’s annual Trends® in the Hotel Industry database reported parking revenue. This number rises to 20.4 percent in 2022. Further, hotels that already managed a parking operation before COVID increased the price they charged guests to park their cars.
To analyze the increase in US hotel parking revenue, CBRE studied a sample of 520 hotels that reported parking revenue for our annual Trends® survey each year from 2019 through 2022. In 2022, these hotels averaged 324 rooms in size, an occupancy of 65.4 percent, an average daily rate of $245.25, and a RevPAR[1] of $157.05, versus the $163.07 RevPAR achieved in 2019. Since the sample consists solely of properties that reported parking revenue, it is skewed toward full-service hotels located in urban areas. This explains the relatively high room counts and ADRs for the sample.
Revenue Growth
Since larger, urban hotels have suffered the most during the pandemic, it is not a surprise that the average property in our sample has yet to return to their pre-COVID levels of total hotel revenue. On average, 2022 total revenue for the study sample is just 95.9 percent of 2019 total revenue.
However, parking revenue for properties in the study sample is 103.1 percent of 2019 levels. This is particularly noteworthy because the number of rooms occupied at the average property in the sample from 2022 was still 14.6 percent less than in 2019. Parking revenue, which is measured on a per-occupied-room (POR) basis, was 20.7 percent higher in 2022 compared to 2019, there is a clear indication that hotels have significantly increased the price they charge guests to park. Parking rate increases are not only an effective way to increase revenue, but they also help offset inflationary pressures on operating expenses.
Consistent with macro travel trends, resort hotels, as well as properties located in resort/destination locations, enjoyed the greatest increase in parking revenue from 2019 to 2022, both on a POR and per-available-room basis. This implies increases in both parking prices and business volume. Limited-service and extended-stay hotels appear to have benefited from their relatively strong performance to drive parking revenue during the post-COVID recovery period. Airport properties were another group of hotels that took advantage of their location to be creative and generate more revenue from their parking lot or garage.
Several factors currently influence the decisions hotel managers make as they set parking rates:
- Kastle Systems, in conjunction with CBRE, has reported that office occupancy levels in the urban core of major US markets have just returned to the 50 percent level. This has left a surplus of available parking spots in several downtown markets. A surplus of parking in urban areas can mute the ability of hotels to raise parking rates as lots and garage owners struggle to gain market share.
- On the other hand, the surplus of parking spaces provides urban hotel owners and operators an opportunity to lease multiple parking spots at nearby lots and garages at relatively low rates. Hotels can then capitalize on their lower cost basis and maximize profits.
- Like guest rooms, hotel parking spaces are not subject to long-term leases. Therefore, hotel parking lots can utilize technology and dynamic pricing techniques to maximize revenue during different market conditions.
- Hotel guests do not typically choose a hotel based on the cost of parking. However, location is frequently cited as an important factor. If guests must drive to stay at the preferred location, then the hotel gains pricing leverage.
Impact on Revenue
Despite these growth figures, parking is still a minor source of revenue for hotels. In 2022, parking revenue for the average hotel in our study sample was 3.1 percent of total revenue. However, parking revenue has grown faster (3.1 percent) than total hotel revenue (2.8 percent) from 2019 to 2022. Parking as a percent of total revenue peaked in 2020 and 2021, highlighting the increased reliability of hoteliers on this alternative source of revenue during the height of the pandemic.
When analyzing the sample by property type, parking revenue made up the greatest share of total revenue at extended-stay hotels (5.3 percent) and all-suite hotels (4.9 percent) during 2022. Urban (3.7 percent) and airports (3.5 percent) hotels enjoyed the greatest contribution from parking revenues when segregated by location category.
Parking Profits
Consistent with the increase in revenue, hotel parking profits have increased from 2019 to 2022. On average, the properties in our sample achieved parking department profits during 2022 that were 8.7 percent greater than 2019 profit levels. Resort hotels, as well as properties in resort and airport locations, achieved the greatest gains in parking department profits.
Unfortunately, parking operations are relatively expensive to run compared to other minor operated departments. The average profit margin for a parking department in 2022 was 60.2%. This is less than the 62.1 percent average profit margin for all minor operated departments. Per the Uniform System of Accounts for the Lodging Industry, the profit margins are calculated before the deduction for overhead expenses such as administration, marketing, maintenance, utilities, property taxes, and insurance.
There are several ways in which hotel owners and operators can maximize revenues and profits from parking. Managing costs, whether parking is being operated in-house or by a third party, is critical in capitalizing on this growing revenue stream.
What Should Hotel Owners be Considering?
Drive Parking Net Income by Evaluating Expenses
Parking expense considerations include evaluating the need for valet versus self-park only operations. Valet services are labor intensive and increasingly costly in today’s labor-constrained market. Technology improvements can be a way of reducing ongoing operating costs with pay-on-foot machines or even gateless app-based technology.
Other market-specific factors impacting the bottom line of hotel parking operations include parking sales tax, if any, in a local market. Urban markets vary from having no parking sales tax to potential taxes at the city, county, and state levels. In addition, the allocation of hotel expenses to parking operations can significantly impact the net income associated with parking. Property taxes, insurance, utilities and other allocations are often out of date and require refinement to optimize parking profitability. Expenses, such as security, cleaning and enhanced lighting, typically improve the perception of a parking facility and can drive long-term parking demands.
In-House vs. Third-Party Operators
Deciding whether to operate parking in-house versus with a third-party operator or parking management company is worth considering in urban parking markets. Third-party operators are often well-connected with other parking demand generators in the area and can tap into their network of parking aggregators to source e-commerce traffic. Third-party operators can also target the surrounding area for parking users who can capitalize on hotel parking spaces during non-peak hotel times.
Since the pandemic, third-party operators are less inclined to enter into long-term lease commitments, preferring management contracts or short-term agreements with less financial risk. Third-party operators can be motivated to perform with incentive-based contracts that offer upside to the operator and enhance the bottom line for parking operations. Operators will typically not assume the risk for property taxes assessed or allocated to the garage.
Own vs. Lease Hotel Parking
Should hotel owners own their parking or simply control it with long-term rights or an access agreement? As alternative investments gain favor in investment portfolios, urban parking is generating increased attention from private and institutional capital as well as infrastructure funds. Urban parking assets can offer investors well-located, covered land plays, attractive yields and the ability to quickly mark prices to market rates in an environment of high inflation.
Parking garages and surface lots supporting hotels are increasingly being bifurcated from the hospitality ownership structure to take advantage of cap rate arbitrage of the parking asset compared to the hotel. Hotel owners don’t necessarily need to own their parking, but at a minimum, they need long-term access or rights to parking. Well-located, urban parking garages with multiple demand generators often trade at aggressive cap rates, particularly in supply-constrained urban markets.
This article was originally published in the June 2023 edition of Lodging and has been shared on HFTP Connect for the benefit of HFTP hotel finance members.
Todd Casper is First Vice President of Parking Investment Sales for CBRE. Robert Mandelbaum is Research Director for CBRE Hotels Research. For guidance on your hotel’s parking operations, Todd can be reached at [email protected]. This article was published in the June 2023 edition of Lodging.
[1] Rooms Revenue per Available Room
Taylor Swift parties, events before Eras Tour in Denver on July 14, 15
Whether or not you’re going to Taylor Swift’s concerts at Empower Field at Mile High next week, you’re in good company.
Fans of the singer-songwriter and her Eras Tour, which plays Denver on Friday, July 14, and Saturday, July 15, scrambled to snag tickets the moment they went on sale earlier this year, ensuring both instant sell-outs and disappointment.
But anyone can attend these parallel yet separate Swift-themed events, in which boutique hotels, promoters, bars and upscale shopping complexes cater to people coming to (and from) the shows in downtown Denver. Getting a piece of that action means meeting fans where they are. Literally.
Here’s a quick roundup of Swift-related events that are open to the public, both free and paid. Watch for The Denver Post’s photo slideshow and review of the tour’s opening night in Denver, to be posted on July 15 on denverpost.com/things-to-do/music, and check out a review and photos of her 2018 Reputation Tour show at Empower Field at bit.ly/44dZdAz.
Taylor Swift silent disco
The McGregor Square complex across from Coors Field in Lower Downtown is diving in early with a silent disco and related events on Saturday, July 8. Each $30 admission includes a silent-disco headset to hear a pair of DJs spinning Swift hits “from every era to dance and sing along to,” as well as beer or seltzer included and access to a friendship bracelet-making station, “the Eras Tour must-have accessory.”
There are, of course, Swift-inspired cocktails such as Champagne Problems and Lavender Haze, and The OG and Rally bars will also be serving Swiftie cocktails. Tickets are $30 per person, or $10 for people who book a room on the same night at the Rally Hotel on-site. eventbrite.com or finallyhotel.com
Early Taylor Swift pre-parties
Other events are popping up a week early to take advantage of the run-up to the show: the Queer Taylor Swift pre-party at Denver’s Goldspot Brewing Company welcomes Gaylors (Swifties who theorize that she’s secretly gay) and everyone else with a costume contest , friendship bracelets and flash tattoos, from 3 to 8 pm on Saturday, July 8. The event is free but donations will be collected to benefit nonprofits Khesed Wellness and The Delores Project. eventbrite.com
On July 13, the night before the first concert, Mile High Spirits is also holding a pre-party featuring “all Taylor Swift, all night long” music ($10; eventbrite.com).
Swifties at the Station
The 1-7 pm celebration on July 14 and 15 at Denver’s Union Station will feature DJ Chris C playing fan-favorite Taylor Swift tunes, a “face rhinestone artist” and a pop-up by LINK x LOU “to help you level up your friendship-bracelet game,” organizers wrote. You can also pose for photos in a booth and enter a Best Dressed raffle for prizes that include a one-night stay at The Crawford with a $100 Denver Union Station gift card.
“Terminal Bar will also be pouring special Taylor Swift cocktails, including the Cruel Summer, a Taylor Spritz, a Blank Space and a Lavender Haze, made with Tito’s Vodka, black tea, lavender, Butterfly Pea Syrup, lemon and soda water,” according to the press release. Anyone who buys food or drink from Terminal Bar on July 15 can also take a free TukTuk ride directly to Empower Field from 3:30 to 7:30 pm Events are free but RSVPs are encouraged via eventbrite.com. More at denverunionstation.com/events/swifties-at-the-station
“You Belong With Me” at Thompson Denver
The year-old Thompson Denver hotel is also going the lux route on July 14 and 15 with its Champagne Problems brunch, featuring specials by the bottle or glass, the Lavender Haze cocktail throughout the hotel, a “special merch stand for the ultimate friendship bracelets and temporary tattoos” (think 13 and 22, organizers said), and a “Cruel Summer” party in Reynard Social with Eras songs by Cyberkid. Note: Overnight hotel rates for these dates start at about $800. hyatt.com/thompson-hotels/denth-thompson-denver
Taylor Swift Glam Makeup Experience
LoDo’s Maven Hotel and Poka Lola Social Club joined forces at The Dairy Block for a Glam Makeup Experience on July 14 and 15, with Denver artist Makeup by Peaches “helping fans to rock Taylor’s signature red lip or add a pop of glitter and color to your already fabulous outfit,” organizers wrote. Timed slots are available 2-6 pm both days for $10 per person. Poka Lola will have the Champagne Problems and Lavender Haze cocktails on both days. Registration is required at eventbrite.com. More at themavenhotel.com
Swift City
This elaborate tailgate party will be set up across from Empower Field along Federal Boulevard from 3 to 6 pm on July 14 with food and drinks, activity booths, DJs, selfie backdrops and more ($25). If you can’t go to the show, they’re also hosting a listening party during it ($25) and a 21-and-up post-concert dance party ($25). The Can’t Stop Won’t Stop bundle includes all of the events ($60). eventbrite.com
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A major hotel chain abandons San Francisco, blaming the city’s “clouded” future
Park Hotels & Resorts, one of the nation’s largest hotel real estate investment trusts, is pulling out of two hotels in downtown San Francisco, saying it lacks confidence in the city’s ability to overcome “major challenges.”
Park Hotels said that it has stopped making payments toward a $725 million loan backed by two of its San Francisco properties, the 1,921-room Hilton San Francisco and the 1,024-room Parc 55 San Francisco.
Both hotels are located near the Moscone Center, a conference venue that prior to the pandemic drew throngs of professionals to the area. San Francisco hasn’t fully recovered since COVID-19 shut down the economy in 2020, with many office buildings still largely empty as workers continue to work remotely. A rash of thefts last year and rising homelessness have caused some retailers to pull out of the city.
Thomas J. Baltimore, Jr., the chairman and CEO of Park Hotels, cited empty offices and reduced business travel as factors that have made owning the hotels untenable.
“Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges,” Baltimore said in a statement this week.
He said the city’s challenges include: “record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future.”
Both properties are expected to be removed from Park Hotels’ portfolio, which includes 46 hotels and resorts with more than 29,000 rooms.
Hit to business travel
Prior to the pandemic, San Francisco was a magnet for business travel. But since the crisis, event bookings have slowed down and foot traffic has receded.
In 2022, San Francisco will experience the steepest drop in revenue from business travel of any major metro area, according to data from the American Hotel & Lodging Association (AHLA). Revenue plunged nearly 69%, or $1.68 billion, compared to 2019.
To be sure, some businesses are still turning to the city for events, with JPMorgan holding its annual health care conference this year in the Union Square neighborhood after a two year pandemic-related hiatus. But other firms have canceled events, deterred in part by street conditions like graffiti and homelessness.
And some retailers have closed their San Francisco locations, citing crime and other issues. Whole Foods in April temporarily closed one of its flagship stores just a year after it opened, citing concerns that crime in the area was endangering its staff. Other retailers that have announced downtown closures include Nordstrom, Anthropologie and Office Depot, according to local station KRON.