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Corporate Housing

The Highland Group is proud to partner with the Corporate Housing Providers Association on the 2018 Corporate Housing Industry Report, the most recent national presentation of data for the corporate housing industry. Included is information on corporate housing business indicators for 62 U.S. and Canadian metropolitan areas.

US Corporate housing room revenue was $3.62 billion in 2017 which was up 12.9% from 2016.  Based on 5,980 units reporting, the Canadian corporate housing industry generated room revenues estimated at $248 million in 2017, a decrease of 10.9% from 2016. The Canadian overall industry is significantly larger than annual revenues currently indicate.

This report is an invaluable resource for corporate housing professionals and their partners, informing strategic management decisions, providing data to evaluate market conditions and identify growth opportunities, as well as to understand the environment to develop new products and services. To order the 2018 Corporate Housing Industry Report, please go to our online store at http://www.shop.highland-group.net/. Included in the report is detailed information on:

  • Unit supply 2008 – 2017
  • Average occupancy 2008 – 2017
  • Average rate 2008 – 2017
  • Average rate by unit type
  • Purpose of Trip
  • (1) Some years from 2008 – 2017 may not be shown for confidentiality reasons and other factors. Call us for years shown in specific MSAs and nationally

Serviced Apartment Summit Americas 2016 video highlights: Click Here

Mark Skinner

Mark Skinner was the guest speaker at the December CHPA Network Connection Event in Atlanta.

Extended Stay

The US Extended Stay Market report covers:Extended Stay Reports

Highland Group Reports segment extended-stay hotels into economy, mid-price and upscale rate segments and include the following:

  • Eight year history of supply, demand, occupancy, average rate and RevPar
  • New construction and supply projections (mid-year and annual report only)
  • Revenue and expense statements (annual report only)
  • Complete History Extended-Stay Hotel Statistics 1998 – 2018
For ordering questions please e-mail catkinson@highland-group.net or call Conni (404) 872-4631
Examples of Extended Stay Research:
  • Feasibility Studies
  • Study of the saturation point for extended stay products
  • National market assessment to establish a new chain of extended stay hotels
  • Due diligence for an investor looking at a package of 20+ hotels
  • Evaluation of extended stay potential in Europe
  • Regional development study

Research and Publications:
The Highland Group has been known for its research and publications on the extended stay segment of the lodging industry since 1992.

Highland Group professionals have been following the extended stay market since the early 1980’s. Partner Mark Skinner is frequently quoted as an international expert on extended stay lodging.

He has appeared in more than 50 publications, including The Wall Street Journal, Barons Hotel and Motel Management, The Miami Herald, and The Atlanta Business Chronicle.

The Highland Group publishes an annual comprehensive survey of the extended stay industry, interim quarterly reports and a statistical report on extended stay hotels in the 100 largest markets each year.

The sample represents nearly 100% of extended stay hotels in multi-unit companies.

Market analysis:

The Highland Group is well known for site specific market and feasibility studies for extended stay hotels. They have experience with all extended stay brands.

Feasibility studies for extended stay hotels include site analysis, evaluation of the local economy, and competitive market analysis.

They also assess the market against benchmarks developed by The Highland Group specifically for extended stay hotels.

The Highland Group has been engaged to study more than 200 extended stay markets around the US and has evaluated extended stay markets in three European markets and Canada.

The Highland Group also provides customized extended stay research and strategic advisory services to extended-stay brands.

Market Studies

Market Studies

The Highland Group is known for thorough research and honest answers. Some hotel investments offer excellent returns, and some lose money.

Hotel market and feasibility studies: are commissioned by hotel developers and investors before they build or buy a hotel.

The first phase addresses feasibility.

If research indicates that the hotel will be a good investment, then the second phase is a report which can be used by third parties such as lenders, investors and franchisors.

A Highland Group Market Study includes analysis of the location’s marketability.

It focuses on the hotel market, analyzing competitors, risks of new competition and the potential of the subject property.

It includes an evaluation of current and future demand for the hotel.

Hotel market research encompasses field research, on-site inspections, in person interviews and analysis of all relevant data and  information.

A market study results in a projection of occupancy and average rate (room revenue) for a hotel.

  • Financial Projections are projections of income and expense based on a market study and operating characteristics of the subject hotel and market. A Highland Group projection provides an estimate of cash flow to use in evaluating potential returns on investment.
  • Locations studied include most primary and secondary markets; also, many tertiary markets across the United States. The Highland Group has experience in almost every US state, Canada, England, Belgium, Hungary, and Grand Cayman.
  • The Highland Group has experience with a wide variety of hotel types, both branded and unbranded. We have experience with all full-service, limited-service and extended-stay brands by Choice Hotels, Hilton, Hyatt, Intercontinental Hotels Group, Marriott and Starwood. Other hotel brands we have worked with include Best Western, Country Inn and Suites, Extended Stay America, Hawthorn Suites, Intown Suites, Studio 6, WoodSpring Suites, My Place and Wyndham.

Boutique Hotels

Boutique HotelsBoutique hotel feasibility studies are commissioned from hotel developers and investors to estimate demand and to project revenues for a one-of-a-kind product. The uniqueness of a boutique hotel property prompts a different and more creative type of approach to determine its feasibility. Boutique hotel feasibility studies require careful selection of comparable markets and hotels.

The Highland Group produces a boutique hotel study involving thorough research of various data from a different perspective.  We provide in-depth analysis of statistical data coupled with research from our client base to aid in determining important factors such as reasonable ramp-up time before stabilization.

Our in-person evaluation of the subject hotel’s destination and years of experience staying in and analyzing comparable hotels provides a solid foundation to recommend the features, services, amenities and reservation systems a boutique hotel will need to be competitive. Many boutique hotels are an adaptive re-use of an existing building and the building’s former use and features add character to the boutique hotel experience.

The Highland Group has decades of creative experience with hotel’s converted from a wide range of prior uses including a funeral home, hospital, prison, bank and a courthouse.

Boutique Hotel Summit 2012, London: featuring Kim Bardoul of The Highland Group

Boutique hotel panel discussion

Boutique hotel panel discussion from the recent Hunter Hotel Conference in which The Highland Group’s Kim Bardoul moderated.

The Highland Group is pleased to present The Boutique Hotel Report 2018 available at our online store.

Impact Studies

Impact StudiesImpact studies are commissioned by a hotel chain, or by the franchisee, when an existing franchisee objects to another hotel being added to the chain.

Chains such as Best Western, all Marriott and Choice brands, and Holiday Inn have formal policies that define when a franchisee can object to a proposed addition to the chain and that define impact.

Other chains look at impact on a case-by-case basis. Most chains use The Highland Group as an independent third party when they have an impact issue.

The purpose of an impact study is to estimate the potential loss to an existing franchise when a new hotel is added to the brand.

Impact studies are a tool for franchisees to express their concerns to their franchisor formally.

Impact studies include field research in which The Highland Group interviews representatives of each hotel concerned and gathers detailed information about the hotels.

We also analyze reservation and other data provided by the chains reservation and other databases. That information, our analysis and conclusions are presented in the impact study.

Click to read article:
Highlights of the Impact Forum

Qualifications:
The Highland Group is uniquely qualified to conduct impact studies.We have studied the reservation and referral systems used by each of the chains for which we do impact studies, so we are prepared to evaluate reservation and other brand-generated business that may be at risk.We have worked with executives of the American Association of Franchisees and Dealers (AAFD) and with various franchisee boards as they prepare to represent hotel owners in negotiating impact policies.

We have done formal presentations about impact for the American Bar Association’s – Forum on Franchising, Hotel Investment Conference – Atlanta, Asian American Hotel Owners Association, and various franchise organizations.

We convened two “Forums on Impact” that brought hotel owners, consultants, attorneys and franchisors together to discuss impact;
The Highland Group published white papers on the proceedings.

Brands studied: 

  • Best Western
  • Comfort Inns and Suites
  • Country Inns and Suites
  • EconoLodge
  • Hampton Inns
  • Holiday Inns
  • Hilton Garden Inns
  • Sheraton
  • Sleep Inns
  • Courtyard
  • Fairfield Inn & Suites
  • Marriott
  • Renaissance
  • TownePlace Suites
  • Residence Inn

Lender Services

Lender ServicesOccasionally, lenders and loan servicers have loans to troubled hotels. The Highland Group provides assistance:

  • Evaluating management and accounting, and the potential for the hotel to recover with or without a change
  • Reviewing financial performance; we have a CPA on staff, and we have hotel operations experience
  • Assessing individual expense accounts and the financial structure of the property. Identifying inappropriate expenses, accounts that may not be current and may pose incremental risks to the lender
  • Evaluating the future market for the property and the potential for the hotel to cover debt service from operations
  • Reviewing the physical condition of the asset and identifying deferred capital expenses
  • Researching the status of the franchise. Advising the lender about the costs, benefits, and requirements of maintaining the franchise
  • Advising attorneys about the asset and serving asexpert witness, if appropriate
  • Acting as asset manager representing the lender’s interest in the hotel
  • Developing a strategic plan for the disposition of the hotel, including alternative scenarios of anticipated results from immediate sale of the asset versus various hold periods

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Litigation Support

Litigation Support

  • Impact and franchise disputes
  • Bankruptcies and workouts
  • Condemnations and takings
  • Disputes between contractors and hotel owners
  • Zoning disputes and hearings
  • Disputes between management companies and hotel owners

Members of the Highland Group provided litigation support in a variety of cases. Examples are:

  • A hotel site was taken for public purposes, but was valued as rural land. The Highland Group’s presentation at a public hearing resulted in the site being revalued, increasing the value more than 500%.
  • The Highland Group advised a State Department of Transportation with regard to hotel appraisals.
  • A contractor failed to deliver a hotel on time. The Highland Group was engaged as the expert to estimate the damages.
  • A hotel was designed with faulty ventilation and climate control. Highland Group estimates and testimony won the hotel owner’s position.
  • The Highland Group has represented various hotels and owners on zoning issues and hearings for variances.
  • A management company failed to maintain a hotel.The Highland Group supported the owner’s CapEx requirements based on research completed by members of the firm for the ISHC.
  • In a dispute between a hotel owner and a management company about the competence of management and marketing, The Highland Group estimated damages.
  • In a dispute concerning a discontinued franchise, The Highland Group testified to the value of a future stream of franchise fees.
  • In a dispute between a lender and a hotel owner, The Highland Group provided projections and expert testimony about proposed plans.
  • In one of Louisiana’s largest DOT cases, The Highland Group’s expert testimony was a key component in a significant reduction in damages awarded to the plaintiff.
  • The Highland Group’s research and analysis was a major factor in the Georgia DOT greatly increasing compensation to the plaintiff without going to trial.

Valuations

Valuations are estimates of the value of a hotel based on a discounted cash flow analysis.Hotel valuations are estimates of the value of a hotel based on a discounted cash flow analysis.

The analysis follows a market study and is based on a projection of income and expense prepared by The Highland Group.

Hotel valuations are used by owners and developers when they study the viability of a hotel development or acquisition.

They are also frequently used in litigation support.

Appraisals from The Highland Group are prepared under USPAP guidelines

Research

Industry-specific statistical reports for associations add value for association members:Research
Highland Group reports are functional for your association members to apply in their businesses. We present the research at Association meetings so members know it is available and understand the value the Association delivers. Highland Group analysts are available to your association members as they have questions about the research. Our research promotes the value of your association to your members.
Raise the profile of your industry:
The Highland Group plans a post-research publicity campaign using research information to enhance the image of the association’s industry. We develop and publish articles for the association about the research, notify the press that new professional information is available, participate in interviews and make presentations for the association.
For associations we have researched:
  • Industry-specific demand trends
  • Price benchmarking
  • Market segmentation
  • Payment distribution
  • Average operating statements (income and expense).
We have prepared nationwide supply and demand projections for specific industries and we have presented data on a national basis, regionally, and by major market. Emphasis on primary data collection provides large samples and reliable information.

Highland Group research design assures usable results.