Hotel Tourism and Leisure lounge

Italy reports favorable results YTD October

Italy reports favorable results YTD October.

LONDON—Hotel performance in Italy shows a generally favourable view, as measured by year-on-year percentage change for the year-to-date October 2011 for the key performance indicators of occupancy, average daily rate and revenue per available room, according to data compiled by STR Global, the leading provider of market data to the world’s hotel industry.

Some markets, however, still are reporting performance decreases. These include Rome Airport Eur-Fiumicino with a fall in RevPAR of 5.3 percent, compared with RevPAR growth for Rome’s other submarkets. Similarly, the sub-market of Milan Linate - San Donato - Assago reported a RevPAR decrease of 1.7 percent when the rest of Milan shows RevPAR growth. See chart below.

PKF forecasts uneven recovery for U.S. hotels

PKF forecasts uneven recovery for U.S. hotels

By Ann Bagel Storck on 12/13/2011

PKF Hospitality Research (PKF-HR) is forecasting the continued recovery of the U.S. lodging industry, with U.S. RevPAR projected to rise 8.1% in 2011 and another 6.1% in 2012, but data also indicates ongoing bias favoring the future performance of hotels in the upper-tier segments of the industry. Hotels operating in the luxury, upper-upscale and upscale segments are all forecast to achieve occupancies above 70% in both 2012 and 2013, which will exceed their long-term average occupancy levels, PKF-HR reported. Conversely, hotels in the lower-priced chain-scales will continue to achieve occupancy levels below their long-term average through 2013. PKF-HR is projecting ADR for all U.S. hotels to increase 4.7% in 2012 and another 5.3% in 2013. The long-term annual average for ADR growth is 2.8%. With occupancy levels for upper-tier hotels forecast to exceed 70%, ADR growth for these properties will exceed the ADR increases projected for lower-tier hotels, according to PKF-HR. However, all chain-scale segments are forecast to surpass their long-term average annual ADR growth rates in both 2012 and 2013. PKR-HR is forecasting U.S. lodging demand to grow 2% in 2012 — less than the annual growth rates observed in 2010 (7.4%, as reported by Smith Travel Research) and projected for 2011 (4.8%). “Looking forward, we are seeing familiar signs along the road to recovery,” said Mark Woodworth, president of PKF-HR. “Owners and operators are now focused on more aggressive pricing policies, which in turn will translate into strong growth in hotel profits. We believe market conditions during the next few years will allow them to achieve these goals.”

Over 70 Restaurant and Hospitality Trends for 2012 Described in Andrew Freeman & Co.'s Annual Report

Over 70 Restaurant and Hospitality Trends for 2012 Described
in Andrew Freeman & Co.'s Annual Report

November 2011 - Now in its fifth year, Andrew Freeman & Co.’s annual restaurant and hospitality trends report has become a highly-anticipated industry standard for anticipating market demand and consumer feedback. With more than 70 trends identified as a result of extensive research, the report is intended:

As a preview of the hottest trends and predictions in hotels, spas and restaurants for the coming year.
As a guide to help operators plan for the coming year.

 
LOCAL SF TREND

Castronomy - The Castro is hot, hot, hot (and we don't just mean the men). It will be the hottest neighborhood for new restaurants in the coming year. The good food movement moves to this vibrant scene.

Example: Canela, a new Spanish style bistro; Criolla Kitchen, a Southern restaurant
Next Up: Inner Sunset

DRINK

Tap Dancing – First it was cask-aged cocktails, pre-measured mixed drinks were barrel-aged for added nuance. Now mixed drinks are available on tap; barrel or not. It’s the new Manhattan project. It’s quick and convenient.

Example: Cask Aged Negronis at Clyde Common (Portland, OR)

It Was a Fine, Fine Beer – Vintage beers are coming of age. Offering intrigue and a taste of the past with higher alcohol beers meant to age.

Example: 1999 J.W. Lees Harvest Ale at The Modern (New York, NY)

Double Hitter – Bars are pitching double-hitters with offers of a cocktail or shot and a beer to chase it with. Call it a one-two shot.

Examples: “$25 Bourbon, Burger & Beer” at Fifth Floor (San Francisco, CA); “Beer & a Shot” at Hogs & Rocks (San Francisco, CA)

Drinks with Drive – The food truck craze has extended to drinks as cocktail trucks are taking to the streets and spirits brands seek to build recognition.

Examples: Leblon Cachaca Caipirinhas Truck (multiple locations, nationwide); BrewTruc (San Francisco, CA)

On Solid Ground – Everyone from bartenders, artists, and pastry chefs will break the mold and reinvent cocktails in solid form. Frozen beverages translate to sorbet and popsicles while artistically layered boozy jellies give jello another shot.

Example: Cuban Libre Gelatin Square at Tailor (New York, NY)

Ounce Upon a Time – Serious spirits enthusiasts and avid wine drinkers will pay for an opportunity to taste luxury beverages beyond their means --- one ounce at a time. Pay to play.

Examples: Nicolas Palazzi serves one ounce pours of premium spirits at cost in The Hooch Project (New York, NY); David Bouley offers menu items from caviar to wine at $5 per ounce at By The Ounce, a wine bar inside Bouley Bakery (New York, NY)

Fram-Booze-le – Breweries are adding fruit to beers of all types. This new fruit juice adds a little hop to your step.

Examples: Apricot Saison au Poivre by Nebraska Brewing Co. (nationwide); Fruit Beer Festival (Portland, OR)

Sip Tease – Mini cocktails offered as an amuse “wet” the appetite before the drinks and meal to come. Create a sense of generous hospitality, while enticing guests to try beverages from the bar program. We’ll drink to that!

Example: Sangria at Mercat a la Planxa (Chicago, Ill.)

"IN"GREDIENTS

Stroop There it Is! – The Dutch dessert (a dark treacle syrup)

Example: Hete Bliksem at Vandagg (New York, NY)

In the Schnitz… – Shnitzle sandwiches (or Milanese)

Example: Schnitzel & Things (New York, NY)

Yuzu Sexy – Yuzu Kosho (a Japanese spice)

Example: Yuzu Kosho Grilled Scallops by Chef Tadashi Ono at Matsuri (New York, NY)

Issan-ometric Exercise - Isaan sausage

Example: Pok Pok (Portland, OR); Thai Nakom restaurant (Stanton, CA)

‘Mallow Out Dude – Home-made flavored marshmallows in exotic flavors

Example: DreamPuff Marshmallows Handmade Marshmallows in many flavors including Guinness Stout and Blackberry Cabernet (New York, NY)

The Lovely Bones – Marrow bones, rib bones, ham bones, bone soup

Examples: Bone Marrow at L’Express (Montreal, Canada); Tripe with Bone Marrow & local Black Truffles at Artusi (Seattle,WA)

Duck, Duck, Goose Eggs

Examples: Pork Jowl and Goose Egg at Bolsa (Dallas, TX); Poached Duck Egg with Chorizo and Lentils at Nightwood (Chicago, Ill.)

Wurst Case Scenario – Currywurst

Examples: Currywurst at Berlin Currywurst (Los Angeles, CA); Currywurst Bro’s (New York, NY)

Lamb Belly up! - Lamb belly

Examples: Moroccan BBQ Lamb Belly at M.B. Post (Manhattan Beach, CA); Lamb Belly with Flageolet Beans, Pistachios, Cardamom, Yogurt at eVe (Berkeley, CA)

Show Me Some Skin – Crispy pig skin, chicken skin, fish skin

Example: Gravy in Chicken Skin, with Roast Foie Gras and a Peppercorn Biscuit at Recette (New York, NY)

Gnoc-chi Ingredient - Parisian gnocchi

Example: Parisian Gnocchi with Morels, English Peas, and Parmesan at Spur Gastropub (Seattle, WA)

Catcher in the Rye – Rye Whiskey

Example: Bulleit Rye Whiskey

Baby got Zwack! - Herbal liqueur made in Hungary with a secret blend of more than 40 different herbs and spices

Example: Lamplighter Cocktail at Violet Hour (Chicago, Ill.)

Big Bare(njager) hug – Honey liquor

Example: The Golden Rule cocktail with Kentucky Straight Bourbon, Bärenjäger Honey Liqueur, Dolin Blanc Vermouth, and Underberg Bitters at Grüner (Portland, OR)

The Date-ing Game – Date syrups and glazes on meats and in drinks

Example: Jallab, date syrup mixed with water and flavored with rosewater at Balade (New York, NY)

The Bitter Lemon Truth – Bitter lemon soda

Example: The London Calling Cocktail with Bitter Lemon Soda, Beefeater Gin, Smashed Cucumber, and Rhubarb, at BoBo (New York, NY)

HOTEL & SPAS

Warm Front – Hotels are warming up by eliminating the formal front desk. Enjoy a personal greeting at the door from a Welcome Ambassador and special gifts or treats in reward for repeat business. We have entered a new thank you economy that offers the combination of a curbside check-in and coming home to a Jewish mother.

Example: No front desk at Hotel Cipriani (Beverly Hills, CA)

Made to Fit – Ultra-targeted personalized service includes not only catering to guests with any special dietary requirements and providing culturally appropriate in-room amenities but also providing personal advice from finding the best off-beat galleries to the most avant-garde dining. Take advantage of your new personal hopper.

Example: Naturally Peninsula Menu at the Peninsula (Hong Kong, China)

Classy Vacations - Offer do-it-yourself experiences for every type, including, cooking classes, gardening opportunities, lessons on pickling or preserving, even massage instruction. Guests seek out experiential vacations and want to get involved.

Examples: Garden tours at Wente Vineyards (Livermore, CA); Cooking classes or guided hikes at Cavallo Point Lodge (Sausalito, CA)

Phone Home – Take advantage of smartphone technology that offers guests the comforts of home. Provide downloadable custom apps to order room service, drinks, movies, or even a local map. Be smart.

Example: Smartphone app to order room service at SLS Hotel (Los Angeles, CA)

Taking Charge – Lead the charge! Due to growing popularity, hotels and resorts offer electric-car charging stations for guest use.

Examples: The Ritz-Carlton (Charlotte, NC); The Grand Geneva Resort (Lake Geneva, WI)

Bedtime Suites – Encourage sweet dreams with customized turndown sweets recreating childhood favorites. Look for hot chocolate, rice crispy treats, cracker jacks, or cookies and a glass of milk of course.

Examples: During the holiday season at The Stanford Court, guests receive an "Elf Tuck in," a personalized family stocking filled with treats, and other fun add-ins (San Francisco, CA)

Cleanse-ing Diets – Eco-conscious guests cut down on cleaning -- saving labor, time and materials with elective daily cleaning programs.

Examples: The Sir Francis Drake (San Francisco, CA)

Shop and Drop – New lobby bar/marketplaces offer enticing places to grab a quick drink, gourmet snack, espresso, light meal or edible souvenirs any time of the day. Make yourself at home with self-service snacks or treats to bring back to your room or take with you. One size feeds all.

Examples: CanteenM at CitizenM Hotels (multiple locations, worldwide); The Market at VINeleven at the Napa Valley Marriott (Napa Valley, CA)

The Royal Bedding – Sleep number bedding, hypo-allergenic organic sheets, and TempurPedic beds offer full customization. Now everyone is the princess, no peas needed.

Example: Pure Rooms mattress and pillow encasements at JW Marriott (San Francisco, CA)

Say Spa-aaah – Conan Owen, of Relax & Rejuvenate, predicts that spa goers will put a little more oomph in their relaxation regimen and undergo clinical treatments such as glycolic peels and other treatments that focus on rejuvenation from an almost medical perspective.

Examples: Ampoule Therapy at Ink Spa (New York, NY)

MARKETING

In the “Q” – Garner a quick response with QR codes. Capture foot traffic with QR codes in the window and on key collateral pieces that link to the website, facebook page or reservations link. Or use one for a virtual concierge site that guests can access on the go, a special contest, or a micro-site that tells a story about who you are and what you do.

Examples: Code Unique Hotel in (Dubai Studio City, Dubai) is a giant QR code; coasters at the W Hotel are printed with a QR code (Fort Lauderdale, FLA)

Follow the Crowd – Engage your fan base through surveys and contests via social media and other online efforts. Use crowd sourcing to determine special packages, perks, seasonal offers and other key features. Let guests weigh-in on key decisions, fostering a sense of personal investment and ownership to instill loyalty. Shift focus from “the cloud” to “the crowd.”

Example: Facebook questionnaires at Haiyi Hotels (San Francisco, CA)

Tuesdays are the New Thursdays – Promote slow nights with special events and promotions designed to draw traffic on off nights. Get creative with ideas ranging from Monday Movie Night in the lobby to Tequila and Taco Tuesdays and Sunday Suppers.

Example: Monday Movie Night at the W Hollywood Hotel (Hollywood, CA); Taco Tuesdays at Royal Palms Resort & Spa (Phoenix, AZ)

Hello Kiddie – Treat the kids like little grown-ups with custom tailored child-friendly services and offerings. This ranges from smaller portions of “adult” items and healthy alternatives on restaurant menus, to low temperature saunas or hot tubs in spas. Introduce age appropriate diversions including climbing gyms in the fitness center or cartoons for in-room movies. Let the kids play like the adults --- and forget baby-“sitting.”

Examples: Hotel Gstaad-Saamen (Switzerland) offers climbing wall and low temperature sauna; Le Meurice (Paris, France) provides kids sized bathrobse and slippers, tea time serving delicious sweets, and a child’s passport of Paris.

Bespoken For – “Bespoke” is the new buzz word in the luxury market as people search for customization in a mass-market world. Give people the opportunity to tailor their experience and show the extra care and personalization that comes with it.

Example: Bespoke Hotels (multiple locations,UK)

Do the Local Motion - Everyone is doing the "local" motion as hotels, spas and restaurants reinforce a unique sense of place. Hotels work with local artists and designers to incorporate indigenous materials in their construction and place local products in their mini bars, while spas rely on locally grown natural and organic ingredients for their products and treatments. Meanwhile, chefs are redefining what it means to be local by calling out region specific influences and reinforcing the sense of what it means to be local by emphasizing a precise place.

Examples: Raindance Spa (Sonoma, CA) works with a local apothecary to develop exclusive spa products and teas crafted from organic local ingredients. Chef Joseph Humphrey’s “Bay Area Cuisine influenced by his Southern upbringing” at Dixie (opening late 2011 in San Francisco, CA)

Music as Muse – Customized playlists are nothing new, but now hotels and restaurants are working with composers, musicians and designers to compose a soundtrack that enhances the experience and relates to the occasion.

Examples: Jenny-O performance at RLife LIVE shows at The Lodge at Sonoma Renaissance Resort (Sonoma, CA); custom playlist at Ace Hotel (Portland, OR)

Cell Serve – Take advantage of location based marketing synced to cell phones to make direct outreach to potential guests in your area. Tell them where you are and what you do. Can you hear us now?

Examples: Google Wallet integrated payment and loyalty program at Subway; Foodspotting; Urban Spoon; etc.

Profit-table – Explore alternative forms of payment including pre-purchased tickets, reservations by auction, and by-the-hour pricing to cut-down on loss, and spur excitement.

Examples: Advance purchase tickets at Next (Chicago, Ill.); "Cook by the Hour" menu at iNG (Chicago, Ill.)

Siberia is Hot! – Turn the least desirable room or the taboo table to the most coveted reservation by booking “problem” spots at discount rates or with special features. The worst seat in the house just got a whole lot better.

Example: Alexander’s Steakhouse (San Francisco, CA) offered 50% off the table located between two restrooms

Eat to Give, Give to Eat – Indulgence feels even better when they give back to the community. Expand marketing potential by partnering with a charity and tying the profits of a cocktail, wine or dessert purchase to a good cause.

Example: La Boulange Fridays, a monthly charitable dinner at La Boulange bakery where guests donate whatever they feel comfortable with and La Boulange matches the night’s donation up to $5,000 (multiple locations, CA)

Open & Clothes – Hotels and restaurants are partnering with designers and designer brands for uniform needs. Consider it couture for a pulled-together look. Give employees a variety of uniform choices as a way to express themselves, such as a plaid shirt of any pattern, or any tie in a given color scheme. There’s nothing uniform about it.

Example: Levi’s partnership with Saison (San Francisco, CA)

Virtual Break Down – People still want a personal connection. Create a tangible experience within your four walls with face-to-face interaction and something tangible to take away with them. Yes, the matchboxes are back! Reach out and touch someone.

Example: After tasting Domaine Chandon sparkling wine, guests are gifted their tasting flute at Domaine Chandon (Yountville, CA)

Seeing Double – Two concepts share one space with different menus, different cooks or different services, and different hours of service. Call it “multiple personality in order.”

Examples: Mission Chinese Food and Lung Shan (San Francisco, CA); Birch & Barley and Church Key (Washington DC, DC)

Keep the Change – Temporary restaurants are popping up in incredible settings: perched above a museum, on a cliff, in a park, or nestled tree top with food delivered by zip line. More permanent restaurants can regularly change their concept to reinvent themselves and keep guests coming back for something new or different. Take advantage of temporary infrastructure to keep costs down, and add immediacy to drive traffic up.

Examples: Pop-up Hotels by Living Architecture (multiple locations, England); Guest Chef Dinners at Baker & Banker (San Francisco, CA)

Social Sciences - Social media is getting savvy, as it continues to evolve and skilled practitioners are using it as a successful sales tool. Use Twitter, LinkedIn, Facebook, and Foodspotting to connect with meeting planners, secure group business or attract new guests.

Examples: Carlton Hotel (New York, NY) reportedly sourced $186,550 in new group and corporate business in 90 days via LinkedIn; Inn at Laurel Point (Victoria, BC) uses Twitter to connect with meeting planners prior to a site visit or conference

The Name Game – Express yourself, your personality, and your concept with a name that speaks volumes and will stick in people’s minds. Goodbye Garden Court and hello Hairy Canary.

Examples: The Arrogant Butcher (Phoenix, AZ); My Fathers’ Office (Santa Monica CA); How to Cook a Wolf (Seattle, WA); Ruxbin (Chicago, Ill.)

Online Ditchcount - Hotels and Restaurants are moving away from online discounting sales like Groupon and instead partnering with online marketing firms that offer gift cards and one of a kind experiences.

Example: Online gift cards at Treatful (nationwide); Exclusive secret menus through Black Board Eats (nationwide)

Andrew Freeman & Co. is a high-energy hospitality agency with a unique blend of expertise in marketing, publicity and creative services. The AF&Co team will do whatever it takes to build awareness for clients and ultimately increase sales. AF&Co offers tailored, flexible programs that include: creative/concept development, branding, recruiting, graphic design, public relations, sales/marketing, training, event management, and more depending on the clients’ needs. The AF&Co team is creative, direct and fun, and focuses on the areas that they are passionate about: restaurants and wine, travel and hotels, and lifestyle personalities and products. For more information, visit afandco.com or follow them on Facebook or Twitter.

An industry veteran, prior to opening AF&Co. six years ago, Andrew worked at legendary New York venues including Windows on the World, the Russian Tea Room and the Rainbow Room. Eventually Andrew left New York to become the Vice President of Public Relations and Strategic Partnerships for Kimpton Hotels and Restaurants, based in San Francisco. He spent ten years with Kimpton, launching the global brand and over 40 hotels and restaurants. Andrew is currently the head of a dynamic hospitality agency offering full service marketing, public relations and consulting for hotels and restaurants.
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PKF Hotel Consultancy Servicecs: hotels performance in UK

Hotels across the country posted a strong set of results in September, according to preliminary hotel figures released today by PKF Hotel Consultancy Services.

Rooms yield in London increased by a healthy 6.8% to £139.08, compared with £130.17 in September 2010, thanks to a 7.5% rise in room rate to £156.04. Occupancy dropped by 0.6% from 89.6% a year ago to 89.1% - the second consecutive monthly decline in the capital since the August riots.

Hoteliers in the regions saw rooms yield grow by 2.1% from £50.60 to £51.66, with a 2.2% increase in occupancy more than offsetting a 0.1% decline in room rate from £64.76 to £64.71. Of the major cities, Liverpool and Edinburgh performed particularly well, posting year-on-year rooms yield rises of 6.6% and 4.7% respectively.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented: “With much of the economy seemingly struggling to keep its head above water, another impressive performance from the hotel sector is undoubtedly good news. Although London remains the engine of growth, it is encouraging to see that the industry is not overly reliant on any single region and that growth appears to be increasingly broad based."

“That said, hotels cannot keep successfully battling the economic headwinds indefinitely. During the final quarter of the year, the industry will need to assess how best to respond to growing concerns about the health of the economy, the uncertain future of the Eurozone, and declining consumer and business confidence both at home and abroad. Skilful revenue management is likely to be essential if hotels are to maintain the same high level of performance that we’ve seen thus far."

“The second consecutive decline in occupancy at London hotels suggests that hoteliers will be watching guest numbers for October with interest, but I doubt that any alarm bells will be ringing whilst occupancy remains close to 90%.”

ENDS

For further information, please contact: Andy Konieczko, PR Manager, 020 7065 0537, andrew.konieczko@uk.pkf.com

Preliminary data for September 2011

Rooms department	2011	2010	% change
UK Regional hotels	851	851
Average daily room rate per occupied room	£64.71	£64.76	-0.1%
Average daily room occupancy	79.8%	78.1%	2.2%
Average daily rooms yield per available room	£51.66	£50.60	2.1%
Approximate number of rooms per day	93,900	94,100
London hotels	115	115
Average daily room rate per occupied room	£156.04	£145.20	7.5%
Average daily room occupancy	89.1%	89.6%	-0.6%
Average daily rooms yield per available room	£139.08	£130.17	6.8%
Approximate number of rooms per day.	23,000	23,000

Notes to Editors:

1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk

2. PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.

3. PKF (UK) LLP has been providing hotel consultancy services since the early 1970s and, in that time, has undertaken thousands of assignments throughout Europe, the Middle East and Africa and further a field. Services include: market evaluation and financial feasibility studies; operational and profit improvement reviews; asset management; business valuations; international property services; corporate strategy and planning; litigation support. PKF’s web site features regular articles from the firm’s hotel consultancy services experts on industry topics – the address is www.pkf.co.uk/hotelcons

4. PKF (UK) LLP’s hotel trends surveys feature a broad range of hotels across the country although mainly in the 3 – 4 star categories and featuring rather more chain operated hotels than those operated independently. While there are a fair number of hotels in country and rural areas, there is a predominance of hotels in towns and cities. In London, supply featured is mainly in the 3 –5 star categories.

5. Final data for July 2011

Rooms department	2011	2010	% change
UK Regional hotels
Average daily room rate per occupied room	£61.30	£61.16	0.2%
Average daily occupancy	76.5%	74.0%	3.4%
Average daily rooms yield per available room	£46.91	£45.26	3.6%
Approximate number of rooms per day	99,650	99,650
London hotels
Average daily room rate per occupied room	£114.46	£110.16	3.9%
Average daily room occupancy	82.1%	82.2%	-0.1%
Average daily rooms yield per available room	£93.97	£90.51	3.8%
Approximate number of rooms per day	41,950	41,900

6. Definition of the key terms used in the surveys table are given below:

7. Room occupancy: the ratio of total occupied rooms to total available rooms

8. Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year.

9. Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar).

Ferragamo: 10 hotel entro il 2016

Un nuovo nome per avviare una fase di espansione. E' la scelta di Leonardo Ferragamo, presidente della società alberghiera che oggi si chiama Lungarno Collection. L'obiettivo del gruppo è di aprire due strutture entro il 2013 e altre due nel 2014 per arrivare a dieci hotel nel 2016. In un'intervista a Casa24 Plus, il gruppo afferma di aver recuperato la posizione pre-crisi con ricavi medi per camera che si aggirano sui 700 euro a Roma e tra i 300 e i 400 euro a Firenze, mentre l'occupazione media è leggermente superiore al 60%. Per il 2011 previsti 20 milioni di fatturato e 3 milioni di Ebitda.

Strong hotel performance in May but challenges remain

22 June 2011: Hotels across the country posted a healthy performance in May, although the sector’s recovery remains fragile outside London.

According to preliminary May figures released today by PKF Hotel Consultancy Services, rooms yield in the capital showed a double digit increase for the second consecutive month, rising by 16.5% to £118.24. This was driven primarily by a 14.8% increase in room rate to £138.50 alongside a 1.5% rise in occupancy to 85.4%.

All hotel classes in the capital recorded an increase in rooms yield, with the luxury hotel segment proving particularly buoyant.

Hotels in the rest of the country reported a 1.3% increase in rooms yield to £45.02. This was the result of a 2.1% increase in occupancy to 74.0%, which more than offset a 0.8% decline in room rate to £60.85.

Hotels in Cardiff, Edinburgh and Manchester were among the best performers, posting rooms yield growth of 17.8%, 10.1% and 8.9% respectively.

Robert Barnard, partner for Hotel Consultancy Services at PKF, commented “This is the most positive set of results so far this year, particularly for London. Hotels in the capital have seen rooms yield rise sharply for the second month in a row and the fact that all hotel classes, from basic tourist accommodation through to high end deluxe operations posted strong results demonstrates the resilience of London as a hotel destination.

That said, hoteliers should avoid cracking open the champagne just yet. Significant challenges remain - particularly for operators outside London that are reliant on the challenging MICE (meetings, incentives, conferences and exhibitions) and corporate markets - and skilful revenue management will be required to ensure that this nascent recovery isn’t snuffed out in the coming months.”

ENDS

For further information, please contact: Andy Konieczko, PR Manager, 020 7065 0537, andrew.konieczko@uk.pkf.com

Preliminary data for May 2011

 

Rooms department	2011	2010	% change
UK Regional hotels	742	742
Average daily room rate per occupied room	£60.85	£61.36	-0.8%
Average daily room occupancy	74.0%	72.4%	2.1%
Average daily rooms yield per available room	£45.02	£44.46	1.3%
Approximate number of rooms per day	78,900	79,150
London hotels	142	142
Average daily room rate per occupied room	£138.50	£120.65	14.8%
Average daily room occupancy	85.4%	84.1%	1.5%
Average daily rooms yield per available room	£118.24	£101.52	16.5%
Approximate number of rooms per day	30,000	29,850

Notes to Editors:

PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk

PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.

PKF (UK) LLP has been providing hotel consultancy services since the early 1970s and, in that time, has undertaken thousands of assignments throughout Europe, the Middle East and Africa and further a field. Services include: market evaluation and financial feasibility studies; operational and profit improvement reviews; asset management; business valuations; international property services; corporate strategy and planning; litigation support. PKF’s web site features regular articles from the firm’s hotel consultancy services experts on industry topics – the address is www.pkf.co.uk/hotelcons

PKF (UK) LLP’s hotel trends surveys feature a broad range of hotels across the country although mainly in the 3 – 4 star categories and featuring rather more chain operated hotels than those operated independently. While there are a fair number of hotels in country and rural areas, there is a predominance of hotels in towns and cities. In London, supply featured is mainly in the 3 –5 star categories.

Final data for April 2011

Rooms department	2011	2010	% change
UK Regional hotels	868	868
Average daily room rate per occupied room	£56.85	£58.48	-2.8%
Average daily occupancy	69.4%	67.7%	2.4%
Average daily rooms yield per available room	£39.44	£39.63	-0.5%
Approximate number of rooms per day	101,000	100,900
London hotels	190	190
Average daily room rate per occupied room	£130.33	£119.42	9.1%
Average daily room occupancy	80.3%	77.1%	4.2%
Average daily rooms yield per available room	£104.70	£92.11	13.7%
Approximate number of rooms per day	41,700	41,600

Definition of the key terms used in the surveys table are given below:

Room occupancy: the ratio of total occupied rooms to total available rooms

Average achieved room rate (AARR): rooms revenue divided by the total number of guest rooms occupied during the year.

Rooms yield: room occupancy multiplied by the average achieved room rate (also known as RevPar

Hospitality lab

Hospitality Lab is a website which provides data, information and tools relating to the hospitality industry and the correlated tourism services. Market data made available by various public and private sources are usually structured and classified in a way which does not facilitate easy consultation; we have therefore created a tool that allows you to retrieve these data according the user’s specific needs of analysis and classification.

The structure of the navigation functions allows you to first of all select the area of your research and obtain the reports of the domestic data. Through the Drilldown function, which is guided by further menus, is then possible to reach levels of greater detail to respond to specific demands.

Difficult Year for the Tourism, Hospitality and Leisure Sector, but Reason for Optimism in 2010: Del

Difficult Year for the Tourism, Hospitality and Leisure Sector, but Reason for Optimism in 2010: Del.

Top 50 Destinations for UK Travellers

In the top spot is Malaga, moving up one place from last year. Tenerife and Alicante are second and third, meaning Spain takes the top three positions.

Orlando is a new entry into the top ten, rising 12 places since last year. Dalaman holds its position as the 5th most searched for destination for a second year in a row, whist New York also breaks into the top ten, up five positions from last year.

Palma comes in 8th, losing one spot since last year; Lanzarote is 9th, rising four places, and Geneva is 10th, dropping two places.

Overall Spain is yet again the most popular country for Brits to visit, with 11 Spanish destinations within the Top 50, five of which are in the top ten.

"These early indications show that Spain is still by far the most popular destination for British travellers. Medium and long haul locations also seem to be on the rise compared to last year, suggesting that holiday budgets may be growing after a tough financial year" said Barry Smith, Skyscanner co-founder and business director.

Brand new entries to the top 50 are Johannesburg and Cape Town, which will be welcoming the World Cup in 2010.  Melbourne, Kuala Lumpur and Hong Kong also entered the top 50.

Destinations dropping most in search volume are Edinburgh, Salzburg, Murcia, London and Fuerteventura.


Top 50 Most Searched for destinations for 2010, from UK airports

1.    Malaga, (Spain) [+1]
2.    Tenerife (Spain) [+2]
3.    Alicante (Spain)[0]
4.    Orlando (USA) [+12]
5.    Dalaman (Turkey) [0]
6.    Faro (Portugal) [0]
7.    New York (USA) [+5]
8.    Palma (Spain) [-1]
9.    Lanzarote (Spain) [+4]
10.    Geneva (Switzerland) [-2]

11.    Bangkok (Thailand) [+11]
12.    Paphos (Cyprus) [-3]
13.    Barcelona (Spain) [+1]
14.    London (UK) [-13]
15.    Bodrum (Turkey) [-4]
16.    Paris (France) [+1]
17.    Rome (Italy) [-2]
18.    Gran Canaria (Spain) [+1]
19.    Larnaca (Cyprus) [+1]
20.    Sydney (Australia) [+7]

21.    Johannesburg (South Africa) [New Entry]
22.    Amsterdam (Netherlands) [-4]
23.    Murcia (Spain) [-13]
24.    Dublin (Ireland) [-1]
25.    Ibiza (Spain) [+5]
26.    Prague (Czech Republic) [-2]
27.    Sharm El Sheikh (Egypt) [+11]
28.    Auckland (New Zealand) [+11]
29.    Venice (Italy) [+4]
30.    Luqa (Malta) [+5]

31.    Krakow (Poland) [-5]
32.    Las Vegas (USA) [+13]
33.    Cape Town (South Africa) [New Entry]
34.    Melbourne (Australia) [New Entry]
35.    Fuerteventura (Spain) [-10]
36.    Berlin (Germany) [+1]
37.    Kuala Lumpur (Malaysia) [New Entry]
38.    Marrakech (Morocco) [-9]
39.    Milan (Italy) [-7]
40.    Dubai (UAE) [New Entry]

41.    Madrid (Spain) [-5]
42.    Hong Kong (Hong Kong) [New Entry]
43.    Perth (Australia) [New Entry]
44.    Edinburgh (UK) [-16]
45.    Munich (Germany) [New Entry]
46.    Salzburg (Austria) [-15]
47.    Crete (Greece) [-6]
48.    Brisbane (Australia) [New Entry]
49.    Sofia (Bulgaria) [-2]
50.    Nice (France) [-2]

New Entries

1.    Johannesburg (South Africa)
2.    Cape Town (South Africa)
3.    Melbourne (Australia)
4.    Kuala Lumpur (Malaysia)
5.    Hong Kong (Hong Kong)
6.    Perth (Australia)
7.    Munich (Germany)
8.    Brisbane (Australia)

Going Up: Highest Climbers

1.    Las Vegas (USA) [+13]
2.    Orlando (USA) [+12]
3.    Bangkok (Thailand) [+11]
4.    Sharm El Sheikh (Egypt) [+11]
5.    Auckland (New Zealand) [+11]

Going Down: Lowest Fallers

1.    Edinburgh (UK) [-16]
2.    Salzburg (Austria) [-15]
3.    Murcia (Spain) [-13]
4.    London (UK) [-13]
5.    Fuerteventura (Spain) [-10]

Key Findings

1.    Spain remains by far the most popular country for the UK market, with 11 Spanish destinations within the Top 50, 5 of which are in the Top 10.
2.    All the new entries to the Top 50 are long haul, apart from Munich.
3.    South Africa has seen the biggest new entry rises, likely due to World Cup 2010 traffic.
4.    Highest climbers are all long haul or medium haul destinations.
5.    Biggest fallers are all for short haul destinations, and include two UK and two Spanish destinations.

Data is based on user searches on Skyscanner, for UK departures for travel in 2010, using data collected in Q4 of 2009.

Related reading: 2009 Travel Trends and Analysis.


Source: Skyscanner.com; ehotelier

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