Hoteliers Expecting Growth Reports TRI
Confidence amongst hotel general managers across the UK remains positive in 2011, according to the latest HotStats Hotel Confidence Monitor. Looking towards the next three months, managers are expecting an improvement in occupancy and room rate, with 63% either optimistic or very optimistic about their hotel’s trading performance.
Confidence amongst hotel general managers remains positive in 2011. Looking towards the next three months, respondents are expecting an improvement in occupancy and room rate, with 63% either optimistic or very optimistic about their hotel’s trading performance. The latest HotStats Hotel Confidence Monitor reveals that general managers are expecting an increase both in the volume and value of corporate and leisure-related room nights in Q2 2011 compared to Q2 2010.
The Confidence Monitor shows that almost 70% of respondents predict either growth or no change in room occupancy during Q2 2011.
Average room rate and RevPAR expectations for Q2 2011 are positive with approximately 80% and 72% expecting an increase or no change.
The trend is unquestionably positive and is reflected in the latest HotStats UK Chain Hotels Market Review, with growth in average room rate and RevPAR of 4.3% and 3.5% respectively for the calendar year to March 2011.
This quarter’s profit expectations have remained broadly the same across the UK with only 37% of general manager expecting an increase in Q2 2011 compared with Q2 2010.
Regarding Q2 2011 sales and marketing expenditure, 84% of respondents intend to increase or maintain their budget in comparison to 2010.
In terms of this quarter’s staffing levels, approximately 72% of respondents have either increased or maintained in the last three months (Q1 2011). Furthermore, of the 297 general managers who completed the HotStats Hotel Confidence Monitor survey, 88% do not expect to reduce staffing levels during Q2 2011 in comparison to the previous year.
Approximately a third of general managers expect an increase in the number of corporate-related room nights, as well as the average sector room rate. The majority of respondents project that the volume and value of corporate demand in Q2 2011 will remain in line with the Q2 2010 performance.
A perhaps surprising finding given the recent falls in disposable income suffered by a very large number of UK households is that the latest HotStats Hotel Confidence Monitor shows that leisure-related demand is anticipated to grow both in volume and value, equivalent to 38% and 36% of respondents respectively.
Hoteliers are less optimistic about conference related room night demand in Q2 2011 compared to Q2 2010. As a result, only 14% of respondents expect an increase in the number of conference delegates, with 16% projecting a growth in conference room rates.
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TRI Hospitality Consulting provides a wide range of services to clients in the hotel sector. It has offices in London, Dubai and Madrid.
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Jonathan Langston, Managing Director – 020 7892 2201