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REVPAR FOR U.S. hotels recovered to 83.2 percent of 2019 levels in 2021, according to STR. Also, in December 2021, ADR and RevPAR hit all-time highs.
U.S. hotel occupancy in 2021 was 57.6 percent, down 12.6 percent when compared to 2019. ADR for the year was $124.67, down just 4.8 percent from 2019. RevPAR at $71.87, down 16.8 percent when compared to two years ago.
"In addition to 2020, U.S. hotel occupancy failed to reach 60 percent for just the second time since 2011," STR said. "On a nominal basis, 2021 ADR was the fourth highest on record. The country's RevPAR level was its second lowest in eight years behind only 2020."
According to the report, none of the top 25 markets experienced an occupancy increase last year over 2019. Tampa reported the highest occupancy at 68.4 percent, down 5.2 percent from 2019.
The largest ADR increase in 2021 was in Miami, up 14.7 percent to $223.49, compared to 2019. Norfolk/Virginia Beach registered the highest growth in RevPAR, up 7.7 percent to $72.31.
The Best Western Plus Hershey in Hershey, Pennsylvania, is now open. It is owned by Anish Patel.
The 60-room hotel is near Hersheypark, The Hershey Co., Hershey's Chocolate World, Hersheypark Stadium, Giant Center, Milton Hershey School, the Hershey Medical Center and Penn State Health and the Tanger Outlets Hershey. Amenities included 1,000 square feet of meeting space, a heated indoor pool, fitness center and outdoor patio area.
"Best Western Plus hotels go beyond the expected, and we are thrilled to be part of this well-respected and highly-regarded brand," said Anish Patel, Owner of the Best Western Plus Hershey. "Hershey is a destination for travelers around the world, and we look forward to our brand-new Best Western Plus® hotel being a preferred travel option for business and leisure travelers alike."
U.S. HOTEL PERFORMANCE moved closer to pre-pandemic levels during the third week of November according to STR. It dipped, however, from the week before.
Occupancy was 59.7 percent for the week ending Nov. 20, down from 61.6 percent for the week before and a slight decrease of 2.1 percent from the same period two
years ago.
ADR for the third week of the month was $126.66, down from $129.98 the week before and increased 1.7 percent when compared to two years ago. RevPAR decreased to $75.60 for the third week of the month from $80.02 the week before, and a slight drop of 0.4 percent for the same period in 2019.
Among STR's top 25 markets, Phoenix saw the largest occupancy increase during the week under review, up 6.4 percent to 76.6 percent over 2019.
Miami reported the largest ADR increase when compared to 2019, 25.5 percent to $207.72.
Oahu Island, Hawaii, experienced the steepest occupancy decline from 2019, down 35.2 percent to 51.8 percent.
AS MANY AS 84 percent of business travelers in the U.S. expect to take at least one trip to attend conferences, conventions or trade shows in the next six months, according to a survey from the U.S. Travel Association. They also expect to resume traveling at a slightly slower pace, about 1.6 trips per month, compared to 1.7 monthly trips pre-pandemic.
The Quarterly Business Travel Tracker by J.D. Power said that less than one in 10 U.S. business travelers are uncertain if they would travel in the next six months. Meetings and events are not occurring and corporate policies restricting business travel are listed as reasons behind this.
USTA forecasts that business travel spending was still down 60 percent from pre-pandemic levels in 2021. However, the latest data shows a clear shift in American
business travelers' desire to return to in-person meetings.
U.S. HOTEL PERFORMANCE increased from the previous week and showed improved comparisons year-over-year, according to STR. Meanwhile, U.S. occupancy reached
the second highest level for any week this year.
Occupancy came in at 67.5 percent for the week ending May 20, up from 65.1 percent the week before and down 1.5 percent over the comparable week in 2022. ADR was
$158.53, up from $154.90 the previous week, and increased 3.6 percent from 2022. RevPAR stood at $106.98 in the recent week, jumped from $100.81 the week before
and increased 2.1 percent against the same period in 2022.
Among the top 25 markets, Washington, D.C., saw the highest year-over-year increases in each of the three key performance metrics: occupancy rose 9.3 percent
to 83.2 percent, while ADR increased 16.2 percent to $220.58. RevPAR also rose 27 percent to $183.60. Furthermore, the weekly occupancy level was the highest in
the market since the start of the pandemic, STR said.
HILTON RECENTLY DONATED nearly $500,000 to support local relief efforts in response to the wildfires that consumed more than 2,500 acres of land and took the
lives of over 100 residents in Maui, Hawaii. The new donation supplements the $325,000 previously pledged by Hilton, the Hilton Global Foundation and members of the
broader Hilton community since early August, the company said in a statement.
At a recent gathering in Las Vegas, more than 9,000 Hilton hotel sales and operational leaders from Focused Service and All Suites brands across the Americas raised
nearly $175,000 for Maui relief efforts, Hilton said. The donations will benefit the Hawaii Community Foundation's Maui Strong Fund and United Way Maui.
The company has been operational in Hawaii for more than 60 years, the statement added.
"Hilton stands in solidarity with the people of Maui and the Hawaiian community," said Katherine Lugar, executive vice president of corporate affairs at Hilton.
"Lahaina holds a special place in our hearts, and we're dedicated to aiding our team members and relief efforts in every possible manner. The collective efforts
of our team members, hotel owners, community partners, and guests have been truly inspiring. Our thoughts remain with those in Maui."
U.S. HOTEL PERFORMANCE during the second week of September increased from the previous week, according to CoStar. Yearly comparisons also were mostly up.
Occupancy was 67.7 percent for the week ending Sept. 16, up from 60.3 percent the week before but down 2.2 percent from the same time last year. ADR was $161.15
for the week, up from $150.66 the previous week and up 2.3 percent from the previous year. RevPAR for the week was $109.07, up from $90.86 weekly and up 0.1 percent
from 2022.
Among the top 25 markets, Oahu Island, Hawaii, saw the largest year-over-year occupancy increase, up 7.4 percent to 83.6 percent. San Francisco saw the highest jumps
in ADR, up 39.7 percent to $345.78, and RevPAR, which rose 33.9 percent to $271.19, due in part to attendance of Dreamforce 2023.
The Best Western Shackleford is open in Little Rock, Arkansas, following a $1 million renovation. The 60-key hotel on Shackleford Road is owned by Rahul Patel.
"We are excited to welcome guests at our newly renovated property while they discover Arkansas' capital city," Patel said. "The updates ensure our guests find
a comfortable place to relax after days exploring our lively downtown, known for its thriving arts and music scene and a range of attractions suitable for all ages."
Several rooms in the hotel are designed in a suite-style with king-sized beds and hot tubs. Amenities include a renovated 24-hour fitness center, indoor swimming
pool and a 700 square-foot meeting space.
The vicinity offers a range of attractions including Little Rock Zoo, Wildwood Park for the Arts, Arkansas State Capitol, Big Dam Bridge, Museum of Discovery,
Heifer Village and Urban Farm, Pinnacle Mountain State Park and various dining options, shopping centers, educational facilities, recreational centers and
transportation hubs.
GOPPAR FOR U.S. hotels improved in September compared to the month before and it exceeded the pre-pandemic levels, according to STR. Meanwhile, the cost of
labor per available room came in higher than the pre-pandemic comparable for the first time.
GOPPAR was $84.03 for the month, up from $64.26 reported in August. It was $78.30 for July and $91.23 in June. The performance index was $88.63 in May and stood at
$90.96 in April. EBITDA PAR was $60.71 for September, TRevPAR was $222.97 and labor costs per room were $71.52.
"Labor costs moved ahead the 2019 comparable due to continued high levels of hospitality unemployment and more spending on contract labor," said Raquel Ortiz,
STR's director of financial performance. "Total labor costs were up 5 percent year to date, with all departments reporting higher expenses, except F&B, due to
less group demand earlier this year. GOPPAR was the strongest since June 2022, and profit margins came in higher than September 2019. Profit margins have been
strong for some time caused by lower employment levels and reduced services."
AS MANY AS 60 percent of Americans are likely to stay in hotels this year, more than last year, according to two surveys commissioned by the American Hotel &
Lodging Association. The survey findings apply to business and leisure travelers, with most saying they are travelling as much as or more than they did pre-pandemic.
Hotels are the top lodging choice among travelers for business and leisure in the next three months, the new national Hotel Booking Index survey research
commissioned by AHLA and conducted by Morning Consult has revealed. According to the surveys, conducted on Dec. 16 to 19 and Dec. 28 to Jan. 2, 52 percent of
adults would choose to stay in hotels in the next three months, while 76 percent of potential business travelers would be most likely to stay in a hotel during the
same period.
Besides, business travelers indicate that nearly 70 percent of their employers have either returned to the pre-pandemic normal or increased amounts of business travel.
The survey said that 51 percent of business travelers said that share of employees expected or encouraged to travel for work is now the same as before the pandemic,
while another 20 percent said it's more than before. About 53 percent of business travelers said that the average length of business trips is now the same as before
the pandemic, while another 20 percent said it's more than before.
THE U.S. TRAVEL ASSOCIATION recently launched the Sustainable Travel Coalition to align the travel, transportation and technology sectors to create a more
sustainable U.S. travel industry, a statement said. The coalition with nearly 60 member organizations will advise USTA on sustainability issues, opportunities
and concerns within the industry.
The long-term goals of the coalition include, showcasing innovative technologies and calling attention to the ongoing actions and leadership of travel professionals
in the sustainability space, boosting industry goals and commitments to conservation, best practices, waste and emission reductions and both long- and short-term
investments. It will also highlight why sustainability matters in the industry and play offense by identifying and promoting proactive policies and defend against
harmful policies that slow progress or penalize the industry without progress.
A policy committee will monitor regular progress and collaboration.
The Best Western Gallup West is now open in Gallup, New Mexico. It is owned by Murad Mohsin.
The 60-room hotel is near Veteran Memorial Pillars, Red Rock State Park, the Gallup Flea Market Fire Rock Navajo Casino and the Navajo Nation Museum. It is two
hours from Albuquerque, New Mexico. Amenities include an indoor pool, fitness center, spa and free parking.
"We are very excited to join Best Western and to have access to the brand's best-in-class support and resources that will strengthen our property and guest service,"
said Murad Mohsin, owner of the Best Western Gallup West. "Our hotel offers something for everyone and is near some of Gallup's most interesting sights. We look
forward to providing the comfort travelers are looking for in our quaint town situated off Route 66."
U.S. HOTEL PERFORMANCE increased in the fourth week of September compared to the week before, according to STR. Performance also improved when compared to 2019.
Occupancy was 70 percent for the week ending Sept. 24, increased slightly from 69.6 percent the week before and decreased just 1.5 percent from 2019. ADR was $157.99
for the week, up from $155.58 the week before and increased 15.7 percent from three years ago. RevPAR reached $110.60 during the week, increased from $108.25 the
week before and up 13.9 percent from 2019.
Among STR's top 25 markets, Orlando reported the highest occupancy increase for September's fourth week, up 7.9 percent to 72.2 percent, over 2019.
U.S. HOTEL PERFORMANCE dropped in the fifth week of September as expected with the Rosh Hashanah holiday, according to STR. ADR and RevPAR were up during the
week when compared to 2019, but occupancy was down.
Occupancy was 66.4 percent for the week ending Oct. 1, down from 70 percent the week before and decreased 2.4 percent from 2019. ADR was $149.71 for the week,
dropped from $157.99 the week before and increased 15.7 percent from three years ago. RevPAR reached $99.36 during the week, down from $110.60 the week before
and up 12.9 percent from 2019.
According to STR, there was demand shifts in the southeast region due to Hurricane Ian besides the Rosh Hashanah impact on business travel and groups.
U.S. HOTEL PERFORMANCE rose from the previous week, while occupancy and RevPAR levels reached the second highest of the year, behind the week ending 18 March,
according to STR's latest data through 22 April.
Occupancy for the week ending April 22 came in at 67.2 percent, up from 64.2 percent the week before, and increased 2.3 percent than the comparable week in 2022.
ADR stood at $155.76, up from $155.33 the previous week and 4.2 percent over the same period in 2022. RevPAR was $104.64, also up from $99.67 the week before and
6.6 percent rise over 2022.
Among the Top 25 Markets, Chicago posted the highest year-over-year increases in each of the key performance metrics: occupancy rose 23.9 percent to 72.2 percent,
while ADR increased 29.6 per cent to $174.71. RevPAR also rose 60.6 percent to $126.13.
Notably, New York City (82.1 percent) and Las Vegas (80.8 percent) were the only two markets to report occupancy above 80 percent.
AIR TRAVEL HASSLES lead fliers to skip an average of two trips annually, which will result in 27 million avoided trips and a $71 billion loss for the
U.S. economy in the coming year, according to a recent report by U.S. Travel Association and Ipsos. The impact of traveler frustrations also leads to a loss
of $4.5 billion in tax revenue. The federal government must prioritize improvements throughout the air travel ecosystem to foster greater growth, the association
has said.
"When almost 60 percent of recent air travelers equate the experience to or find it worse than going to the DMV, it's a worrisome sign that requires action,"
said Geoff Freeman, USTA president and CEO. "With targeted efforts, the federal government can certainly enhance the entire travel system."
Half of travelers said they would increase air travel in the next six months if the experience were less of a hassle, the poll revealed. Similarly, business
travelers would take an average of two more trips annually if travel frictions improved, resulting in 18 million additional trips and $52 billion in economic impact.
THE 2020 COVID-influenced lodging industry recession resulted in some noticeable changes to the way hotels provide F&B service.
Social distancing regulations forced operators to be creative in the way they served food and beverages to guests.
Rising wage rates and sharp increases in the cost of food and beverage products compelled hotel managers to find ways to control costs.
The inability of hotels to attract employees to fill the positions eliminated during the recession required creative solutions to improve productivity and offer
more with less.
These factors resulted in the following hotel food and beverage trends during the subsequent recovery period:
The increased offering of kiosks and grab-and-go venues
The closing of traditional three-meal-a-day restaurants
A reduction in the menus, number of seats, and hours of remaining F&B venues
Reductions in in-room dining and mini-bar service
The conversion of food and beverage space to other revenue generating purposes
To learn how these recent changes in hotel food and beverage operations have impacted revenues and expenses, we have analyzed the operating statements of
2,500 U.S. full-service, resort, and convention hotels that participated in CBRE's annual Trends in the Hotel Industry in 2021 and 2022. In 2022, these 2,500
properties averaged 285 rooms in size, and achieved an occupancy of 64.7 percent, along with an ADR of $225.60. To provide more current information, we also
relied on the monthly operating statements of 1,200 properties during the period January through June of 2023.