Page 10 - NBIZ Magazine December 2020
P. 10

new supply will be added over the   economic analysis of the impact of    that there will be a partial recovery
        next few years, allowing the market to   Covid-19 described previously. The   in 2021 to 50% as the economy tran-
        recover sooner.                     table shows the occupancy and the     sitions back from uncertainty to a
           The forecast of the Houston MSA   ADR and RevPAR percent change for    somewhat more certain pattern. With
        hotel market is based on historical   2019 (actual) and 2020 through 2024   economic factors returning to a more
        data from STR, Inc. and Kalibri Labs,   forecast. (See page 8).           normal pattern in 2022, occupancies
        a survey of the hotel members of the   As indicated in the table, occupancy   will continue to recover in 2022 (58%)
        Hotel and Lodging Association of    is forecasted to drop from 62% in 2019   and 2023 (60%), stabilizing at pre-
        Greater Houston (HLAGH), and the    to 40% in 2020. Then, it is estimated   Covid levels in 2024 (63%).
                                                                                     ADR is estimated to decline by
                                                                                  20.1% in 2020 due to the impact of
                                                                                  Covid-19. With the partial recovery
                                                                                  in occupancy, ADR is forecasted
                                                                                  to slowly increase at 8.2% in 2021.
                                                                                  As economic factors become more
                                                                                  certain in 2022, ADR is estimated
                                                                                  to bump up by 10.9%, returning to
                EMPLOYER                                                          a more normal growth pattern in
                                                                                  2023 at 5.9% and 2024 at 3.7%.
                BENEFIT SERVICES                                                     RevPAR is a measure of profitabil-
                                                                                  ity for a hotel, combining the effects
                                                                                  of both occupancy and ADR. The
                                                                                  resulting forecast for RevPAR shows
                                                                                  a -48.4% decline in 2020, followed by
                                                                                  gains of 35.3% in 2021, 28.6% in 2022,
                                                                                  9.5% in 2023 and 8.9% in 2024.
                                                                                     The Covid-19 pandemic created
                                                                                  an unprecedented decline in the
                                                                                  hotel industry. Never before has hotel
                      PLAN             PAYROLL             BENEFIT
                 ADMINISTRATON       MANAGEMENT           PACKAGE                 demand come to a virtual halt so
                 Assistance and research   Get your employees   MARKETING         suddenly and for such a sustained
                 to keep you informed   paid quickly so you   Document            period. However, the hotel industry is
                 and in compliance with   can get back to doing   administration of   a people industry, made up of optimis-
                 state and federal laws.  what your company   401(k) and 403(b)
                                        does best.      including employee        tic personalities and resilient spirits.
                                                       enrollment assistance.     As the green light is turned on and
                                                                                  travel begins again, the hotel indus-
                                                                                  try will rise out of the dust and reach
                                                                                  new heights. You can bet on it. N

                                                                                  Randy McCaslin, CEO, and
                                                                                  Patrick McCaslin, COO, are the
                                                                                  Co-Founders of McCaslin Hotel
                                                                                  Consulting, LLC. Combined, the
                                                                                  McCaslin’s have more than 50
                     CLAIMS             HUMAN             BENEFITS                years of professional experience
                  MANAGEMENT          RESOURCES        EDUCATION AND
                   When a claim is    CONSULTING         CONSULTING               in the hospitality industry. In an
                 made, we assist in the   Develop policies and   Cra  a competitive   effort to provide much-needed

                  process, from the first   procedures, address   employee benefits plan   assistance to hotels that have
                 filing of the claim to its   recruiting strategies,   to recruit and retain   become distressed as a result of
                     resolution.   develop job descriptions.  valuable employees.
                                                                                  the Covid-19 pandemic, McCaslin
                                                                                  Hotel Consulting, LLC has created
                                                                                  a unique array of services to assist
                                            PUTTING ALL THE HEALTHCARE            with forecasting and planning for
                                                BENEFIT PIECES TOGETHER           the challenging road ahead and
                                                                                  some funding options through
                                             OFFICE       ONLINE
                                             713-647-9700   strategic partnerships. More
                                                                                  information can be found on

        10  NBIZ  ■ December  2020
   5   6   7   8   9   10   11   12   13   14   15