Construction slows for Canadian hotels
With 153 projects/19,181 rooms at the end of Q4 2009, the total Construction Pipeline has fallen 42% by projects and 44% by rooms from the peak in Q1 2008. The total project count is the lowest LE has recorded, while the room count is at its lowest since Q4 2004. Proportionately, the declines in Canada’s Pipeline are not yet as precipitous as in the United States, as Pipeline contractions are running 3-6 months behind the pace set in the US.
Pipeline declines will continue into the middle of the decade, likely for one to two years after a recovery in operations firmly takes hold.
LE notes that:
44% of all Pipeline projects and 46% of total rooms are currently Under Construction. At 67 projects/8,859 rooms, Under Construction totals are down 25% by projects and 28% by rooms from the Q1 2008 peak.
At 34 projects/3,813 rooms, counts for Starts in the Next 12 Months are the lowest LE has ever recorded. Projects are down 63% and rooms down 67% from the peak. These declin¬ing trends have accelerated over the last year.
52% of total Pipeline rooms are located in the five leading markets. Toronto, with 27 projects/4,624 rooms, remains the focal point for development in Ontario. Edmonton, with14 projects/1,636 rooms, and Calgary, 11 projects/1,608 rooms, make up a majority of Alberta’s 40 projects/4,611 rooms.
Key pipeline Metrics
Global economic declines, as well as decreases in both domestic and incoming international travel, are weighing heavily on the lodging operating environment. They are impacting developer sentiment as well. As the current development cycle comes to a close, Construction Starts have descended to a lower channel due to falling lodging demand and the tightening of lending, and will remain at low levels through mid-decade. Project cancellations and postponements have been elevated, but will soon begin to fall as the Pipeline has now been mostly purged of its less feasible projects and those that are not easily financed. New Project Announcements are at cyclical lows. This lower channel will continue well after demand and room rates start to recover.
LE’s Forecast for New Hotel Openings
New Hotel Openings held at a historically high level in 2009, with 56 hotels/6,548 rooms coming online during the year.
LE’s Forecast expects New Hotel Openings to remain elevated in 2010, with 46 projects/6,045 rooms scheduled to open as new supply. However, declining Pipeline totals will begin to impact in earnest in 2011, when only 31 new hotels/3,462 rooms are expected to open. Lower levels of future new supply will aid the industry’s operat¬ing recovery, as there will soon be fewer guestrooms to absorb.
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Edited by Militza Richard
Giving efficiency the full throttle at NASCAR
The NASCAR organization has long been synonymous with speed, agility and innovation. And so by extension, partnerships at NASCAR hold a similar reputation. One such partner for the organization has been CDW – a leading multi-brand provider of information technology solutions to businesses, government, education and healthcare customers in the United States, the United Kingdom and Canada. CDW provides a broad array of products and services ranging from hardware and software to integrated IT solutions such as security cloud hybrid infrastructure and digital experience. Customer need is the driving force at CDW, and the company helps clients by delivering integrated services solutions that maximize their technology investment. So how does CDW help their customers achieve their business goals? Troy Okerberg, Field Sales Manager - North Florida at CDW adds “We strive to provide our customers with full stack expertise, helping them design, orchestrate and manage technologies that drive their business outcomes.”
NASCAR acquired International Speedway Corporation (ISC) in 2019, merging its operations into one, new company moving forward. The merger represents an important step forward for NASCAR as the sport creates a unified vision to embrace its long history of exciting, family-oriented racing experiences while developing strategic growth initiatives that will drive the passion of core fans and attract the next generation of race fans. CDW has been instrumental in bringing the two technology environments together to enable collaboration and efficiency as one organization. Starting with a comprehensive analysis of all of NASCAR’s vendors, CDW created a uniform data platform for the data center environment across the NASCAR-ISC organization. The IT partner has also successfully merged the two native infrastructure systems together, while analyzing, consulting and providing an opportunity to merge Microsoft software licenses as well.
2020 turned into a tactical year for both organizations with the onset of the pandemic and CDW has had to react quickly to the changing scenario. Most of the initial change included building efficiencies around logistics, like equipment needing to be delivered into the hands of end users who switched to a virtual working environment almost overnight. CDW’s distribution team worked tirelessly to ensure that all customers could still access the products that they were purchasing and needed for their organizations throughout the COVID timeframe. Okerberg adds that today, CDW continues to optimize their offering by hyper-localizing resources as well as providing need-based support based on the size and complexity of their accounts. Although CDW still operates remotely, the company commits to adapting to the changing needs of their clients, NASCAR in particular. Apart from the challenges that COVID-19 brought to the organization, another task that CDW had been handed was to identify gaps and duplicates in vendor agreements that the two former single-entity organizations had in place and align them based on services offered. CDW further helps identify and provide the best solution from a consolidation standpoint of both hardware and software clients so that the new merged organization is equipped with the best of what the industry has to offer.