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U.S. HOSPITALITY SECTOR has consistently maintained the highest quit rates by workers among all industries, consistently exceeding 4.5 percent since July 2021, according to the U.S. Chamber of Commerce. However, the leisure and hospitality sector maintained the highest hiring rate among all industries, fluctuating between 6 percent and nearly 19 percent. These industries saw a loss of 837 thousand workers in September, yet 1.1 million individuals were hired into the industry during the same month. This hiring rate exceeds the national average, which was 3.7 percent in September 2023, the U.S. Chamber of Commerce said in its latest report titled Understanding America's Labor Shortage: The Most Impacted Industries. The latest jobs report from the Bureau of Labor Statistics reveals a positive influx of individuals into the workforce.

The September 2023 issue of Asian Hospitality magazine offers in-depth coverage of the latest trends and developments in the hospitality industry. This edition highlights crucial topics such as the surge in hotel development, innovative technologies transforming the guest experience, and key insights from industry leaders. Readers can explore detailed articles on sustainability, financial performance, and the evolving landscape of extended-stay hotels. Additionally, the issue delves into diversity initiatives and workforce challenges, providing a comprehensive view of the hospitality sector's future. Stay informed with expert analysis and forward-thinking strategies shaping the industry in 2023 and beyond.

AAHOA's 12 POINTS of Fair Franchising are meant to serve as a template for hotel franchisers to use in how they relate to association members. One of those franchisers, G6 Hospitality, recently responded and let AAHOA leadership know how they're applying the points. G6, parent company of Motel 6 and Studio 6 economy brands, provided an analysis of all the 12 points in which the company provides additional commentary and clarification around the brand's practices related to its franchisees, according to AAHOA. The association released the 12 Points in April as part of educational offerings. Rob Palleschi, CEO of G6 Hospitality, said his company emphasizes open communication and collaboration with its franchisees. "We value our relationship with AAHOA and are committed to open communication and collaboration to support both our owners and our industry," said Rob Palleschi, CEO of G6 Hospitality.

THE REPRESENTATION OF Black and women members on hotel industry boards is on the rise, signaling progress in board diversity, according to recent research commissioned by AHLA Foundation and conducted by Penn State's School of Hospitality Management. The surge surpasses the 2022 averages for firms in the Russell 3000 Index, while indicating multiple gains for the industry. The 2022 data analysis involved 230 board members from 28 companies spanning the years 2016 to 2022, the AHLA Foundation said. Key findings from the report include: In 2022, women held 31.3 percent of independent board seats on hotel public company boards, a notable surgefrom 22.5 percent in 2021. This surpasses the 2022 Russell 3000 Index average of 28.4 percent for women representation.

INDEPENDENT HOTEL OPERATORS must refine their strategies to stay competitive in 2025 amid labor shortages, price-sensitive travelers and the growing dominance of branded hotels, which now account for 72 percent of U.S. properties, according to Cloudbeds. Furthermore, independent hoteliers are focusing on 2025 as the "year of optimizing performance." Cloudbeds' 2025 State of Independent Lodging Report provides a data-driven analysis of the global independent lodging segment, highlighting key trends across often-overlooked property types. "Hospitality is fundamentally human-and independent properties represent its heart and soul," said Adam Harris, Cloudbeds' cofounder and CEO. "Cloudbeds is helping these businesses transform challenges into opportunities, proving that being independent doesn't mean being alone. Together, we're building a future where independent hospitality businesses don't just survive-with access to technology like Cloudbeds Intelligence, they lead the way forward."

Isaac Collazo is the new vice president of analytics for STR. Previously, he was vice president of capacity at InterContinental Hotels Group. Previously, Collazo conducted performance analysis, predictive analytics, modeling and macroeconomic interpretation for Marriott International, Promus Hotel Corporation and La Quinta Inns & Suites. He also is a content committee member for STR's Hotel Data Conference. "Isaac will be an immediate voice in conversations around STR methodology as well as our ongoing product development in the CoStar platform," said Amanda Hite, STR president. "Long-term, he'll contribute to the evolution of the holistic solution we will deliver to the industry." Commercial real estate research company CoStar acquired STR in 2019. Collazo called the new position a "dream come true."

IN 2020 AND 2021, U.S. hotel operators did a praiseworthy job controlling expenses to offset the significant declines in revenue. Based on data from CBRE's Trends in the Hotel Industry survey of annual operating statements from thousands of properties across the U.S., not only have we seen a reduction in the variable expenses associated with the drop in business volume (i.e., occupied rooms, restaurant covers), but also in cuts among what were previously thought to be fixed expenses. During this time period, insurance costs were out of operators' control. Per the 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI), insurance expenditures are classified as a non-operating expense and reported on the summary operating statement below gross operating profits. The insurance expense line item includes property insurance for building, contents, and business income from all perils, as well as general liability and excess liability insurance. The insurance expense category does not include workers compensation insurance, which is allocated to the operated and undistributed departments. To analyze recent changes in hotel insurance costs, and the factors that influence those changes, we examined the operating statements of 3,156 U.S. hotels that reported insurance expenses for the Trends survey each year from 2015 through 2021 (estimated). The following paragraphs summarize the findings from our analysis.

ACCORDING TO THE March 2022 edition of CBRE's Hotel Horizons national forecast report, the total revenue for a typical U.S. hotel is not expected to return to pre-COVID 2019 nominal dollars until 2023. Accordingly, hotel owners and operators continue to seek ways to control expenses, and that can include property taxes. One potential reduction opportunity is property taxes, according to an article from Robert Mandelbaum, director of research information services for CBRE Hotels Research, and Mark Whitney, managing director of CBRE's Property & Transaction Tax Services platform. Based on a sample of 3,400 hotels from CBRE's Trends in the Hotel Industry database, U.S. hotel property tax expenditures declined by 13 percent from 2020 to 2021. This decline put 2021 property taxes 9.9 percent below 2019 levels. Unfortunately, this compares unfavorably to the 41.3 percent decline in revenues and 57.4 percent falloff in profits during the same period. For this analysis, profits are defined as earnings before interest, taxes, depreciation, and amortization, or EBITDA. Relationship to Profits Compared with other forms of real estate, hotel financial performance is relatively volatile. Because of the lack of long-term leases, hotel revenues and profits will react almost instantaneously to changes in the economy. This was evident during 2020 when we observed a sudden 64.3 percent drop in revenues along with a 109.4 percent decline in EBITDA in reaction to the pandemic.

U.S. EXTENDED-STAY HOTELS started 2025 with strong January growth, particularly at lower price points, according to The Highland Group. Supply and demand grew much faster than the overall industry, but other performance metrics lagged. The U.S. Extended-Stay Hotels Bulletin: January 2025 reported stronger ADR and the most RevPAR gains for extended-stay hotels compared to corresponding classes. "January was another very good month for extended-stay hotels with positive change in RevPAR in nine of the last ten months and the economy segment continuing to lead RevPAR growth," said Mark Skinner, The Highland Group's partner.

BY THE FOURTH quarter of last year, group business in 10 of the top markets in the U.S. had recovered 110 percent compared to the same time in 2019, according to the Hospitality Group and Business Performance Index from Knowland and Amadeus. The top 20 markets have achieved 100 percent of 2019 levels of occupancy and ADR, with 10 surpassing 110 percent or more. Group business reached the 110 percent health index in the fourth quarter because it used 95.5 percent of the group rooms sold in 2019, coupled with a 14.8 percent increase in ADR, according to the index. Overall growth for the year 2023 stood at 103 percent, with 92.5 percent of group rooms sold in 2019 and an accompanying average rate increase of 11.7 percent. Meetings and event business rebounded to 91.9 percent in the fourth quarter compared to 2019, with an end-of-year recovery rate of 91.2 percent. The volume of smaller groups led to stability in the market, according to Knowland. Currently, 70 percent of events have 200 attendees or less and smaller meetings, those with less than 25 attendees, saw the most growth, experiencing a 19 percent increase since 2019.

THE MARTIN LUTHER King Jr. Day calendar shift impacted U.S. hotel performance upward in the third week of January, boosting weekly and year-over-year metrics like occupancy, ADR and RevPAR, according to CoStar. San Francisco led the top 25 markets with the largest gains in all three key metrics. Occupancy increased to 55.8 percent for the week ending Jan. 18, up from 49.2 percent the previous week, reflecting a 6.7 percent year-over-year increase. ADR came in at $155.81 from $144.03, marking a 10 percent rise compared to the same period last year. RevPAR grew to $86.93 from $70.92, a 17.4 percent year-over-year increase. San Francisco led the top 25 markets in year-over-year growth, driven by the J.P. Morgan Healthcare Conference. Occupancy rose 35.9 percent to 71.2 percent, ADR surged 230 percent to $625.98, and RevPAR jumped 348.3 percent to $445.85.

U.S. HOTEL PERFORMANCE improved for the week ending March 1 compared to the previous week, according to CoStar. Occupancy and RevPAR increased week over week, while ADR saw a slight decline, but all three metrics showed year-over-year growth. Occupancy increased to 62.8 percent for the week ending March 1, up from 60.3 percent the previous week and 0.4 percentage points higher year over year. ADR declined slightly to $159.26 from $159.90 the prior week but remained 2.7 percent higher than the same week last year. RevPAR increased to $100.06 from $96.49, reflecting a 3.1 percent gain compared to the same period in 2023. Among the top 25 markets, St. Louis recorded the highest year-over-year occupancy gain, rising 12.1 percentage points to 59.4 percent.

U.S. HOTELS ADDED 700 jobs in May, highlighting persistent workforce shortages, with 191,500 vacancies since early 2020, according to the American Hotel & Lodging Association. However, a survey by AHLA of hoteliers in May found 76 percent of respondents are experiencing a staffing shortage and 13 percent reported they are severely understaffed, meaning the shortage is affecting their hotel's ability to operate. By comparison, in a January survey, 67 percent said they were experiencing a staffing shortage, and 72 percent said they were unable to fill open positions. Total hotel employment is now approximately 1.92 million, according to the Bureau of Labor Statistics. This is still 191,500 short of pre-pandemic levels in February 2020, highlighting the ongoing struggle to find workers.

U.S. HOTEL PERFORMANCE declined in the third week of December compared to the previous week, according to CoStar. However, year-over-year comparisons were positive due to the Hanukkah calendar shift and a shortened business travel period between Thanksgiving and Christmas. Occupancy, RevPAR and ADR all saw week-over-week decreases. Occupancy fell to 48.9 percent for the week ending Dec. 21, down from 59.5 percent the previous week but up 11.4 percent year-over-year. ADR declined to $135.79 from $155.21, reflecting a 2.7 percent year-over-year increase. RevPAR dropped to $66.36 from $92.32 week-over-week but showed a 14.3 percent gain compared to the same period in 2023. Tampa, driven partly by hurricane recovery demand, led year-over-year growth among the top 25 markets, with occupancy up 37.9 percent to 71.5 percent and RevPAR up 63.8 percent to $110.51. New York City recorded the highest ADR increase, up 20.1 percent to $351.39.