Page 10 - NBIZ Magazine December 2020

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 www.corebenefits.net strategic partnerships. More
information can be found on
McCaslinHotelConsulting.com.

10 NBIZ ■ December 2020