Hotel
Study 2005 marks an important landmark as, with
its conclusion, it is possible to come to conclusions
about trends. In particular, the database of
participants now covers - to a large extent
with a steady sample - the years after 2002.
It is, therefore,
possible to reach useful, albeit not optimistic,
conclusions regarding the evolution and the
management of hotels.
In a nutshell,
the data shows that 2004 was overall a difficult
year but alos illuminates a serious management
problem. For example, 2004 was an Olympic year
for Athens and, comparing it with the previous
year we observe:
- a drop in
occupancy from 55% in 2003 to 51% in 2004,
- significant
rise in ARR from Euro 108 to Euro 197
- and consequently
in RevPAR from Euro 59 to Euro 93;
- despite this
G.O.P. rose only marginally from 13% to the
still low to 17,4%;
- also, labour
cost as a percentage of sales fell from 52%
to 49%, but in real numbers rose by 10%;
- finally,
marketing expenses were reduced by 15% and
represent less than 2% of sales, while G&A
rose by 31% and represent more than 6% of
turnover.
In other words,
the impressive improvement in market conditions
did not lead to a similar improvement in profitability.
Moreover, marketing activity was reduced not
only proportionately but also in absolute terms,
which will have an adverse impact on the long
term profitability of the sector.
In addition
to the general results, the analysis is also
performed for the following 4 segments of the
market:
- 5 star hotels
- 4 star hotels
- City hotels
(5 and 4 star)
- Resort hotels
(5 and 4 star)
Data analysis
(market mix, occupancy, ARR, RevPAR, payment
terms, P&L analysis etc.) covers data from
2004 on its own, but also in comparison to 2003
and 2002.
The Hotel Study was conducted under the auspices of
Sete and the support of Traveldailynews.
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auspices of
with
the support of
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