UK, Europe & MENA. Hotel Industry Report

Transcription

1 UK, Europe & MENA Hotel Industry Report

2 FOREWORD 02 COMPANY PROFILE 03 MARKET INTELLIGENCE REPORTS VAT THE UK YEAR IN REVIEW 05 LONDON 06 / ENGLAND 07 SCOTLAND 08 / WALES 09 THE EUROPE & MENA CITY MARKET REVIEW 10 ABU DHABI 11 / AMMAN 12 / BUDAPEST 13 DOHA 14 / DUBAI 15 / FRANKFURT 16 ISTANBUL 17 / PARIS 18 / RIYADH 19 ROME 20 / SHARM EL SHEIKH 21 / VIENNA 22 GLOSSARY For Further Information Pablo Alonso, General Manager pablo.alonso@hotstats.com +44(0) Tony Oliveira, Business Development Manager tony.oliveira@hotstats.com +44(0) HotStats 2015 may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent. HotStats Limited Crawford Street London W1H 2HB Tel +44 (0) Visit Follow us on LinkedIn and Twitter HotStats 2015: UK, Europe & MENA Hotel Industry Report

3 FOREWORD Welcome to HotStats 2015 UK, Europe & MENA Hotel Industry Report. Since 1997, HotStats has developed its profit and loss database and coverage in an increasing number of hotel markets and destinations to help the hotel industry measure performance across all the complexities of a hotel s profit and loss account. HotStats is more widely used today than ever before and we are proud to be at the forefront of this change by providing valuable, unique and timely intelligence on a monthly basis. As a further innovation, we are excited at the launch of our unique Quarterly Profitability Forecast in partnership with e-forecasting. For the first time, the industry, its funders, observers and advisors can benefit from Total Revenue and GOP forecasts based on HotStats' robust and comprehensive historic database combined with powerful econometric forecasting tools applied by skilled and experienced economists. This publication presents reviews of the London, England, Scotland and Wales hotel markets for 2014 as well as key selected European and Middle Eastern destinations including Abu Dhabi, Amman, Budapest, Doha, Dubai, Frankfurt, Istanbul, Paris, Riyadh, Rome, Sharm El Sheikh and Vienna. This represents a small selection of the 200+ markets on which we provide full monthly profit and loss reporting. The need for full profit and loss benchmark analysis is more apparent than ever. The most successful operators understand the importance of demonstrating to owners that they deliver where it matters: at the bottom line. By way of example, while key European cities like London, Frankfurt and Rome report increases in RevPAR as high as 5% compared to 2013, increases in operating costs eroded any growth in Rooms profitability. Meanwhile, the often-overlooked Food & Beverage and Conference & Banqueting departments provided salvation with all three cities reporting increases in revenues and departmental profits which delivered the sought-after growth in GOPPAR. We recognise the needs of our contributors, their owners and their advisors who seek intelligence at a granular level in order to make the best-informed business decisions. Consequently, we continue to build the coverage and depth of relevant full profit and loss benchmarking. In addition to our monthly profitability we also make available a range of market intelligence reports. Please refer to page 4 for detailed information on how we can assist you. As ever, we are most grateful to all the contributors to HotStats without whom this publication would not be possible. Pablo Alonso General Manager HotStats HotStats 2015: UK, Europe & MENA Hotel Industry Report 2

4 Now in its 18th year of providing market-leading hotel benchmarking, HotStats provides unique monthly profit and loss information to hoteliers throughout EMEA, which includes a substantial sample base in the UK. Our database currently totals 1,650 properties representing 360,000 rooms in 200 markets from 100 different brands. Our market intelligence data are also available for purchase to developers, consultancy practices, investors, asset managers, banks and many others. NEW We believe the hospitality industry should focus on total revenues and profits rather than rooms revenues only. HotStats Services HotStats Hotel Profit Intelligence Monthly full profit & loss benchmarking Market Intelligence Reports HotStats Classic More than 80 metrics for a full insight in a market place HotStats KPI Rooms KPI, TRevPAR, DOPPAR, GOPPAR, Payroll metrics with market segmentation HotStats RevPAR Plus Rooms KPI and TRevPAR with market segmentation HotStats Forecast Rooms KPI, TRevPAR, GOPPAR predictions for 24 months and 8 quarters ahead Press Releases & Industry Publications Monthly UK Chain Hotels Market Review Monthly European Chain Hotels Market Review Monthly MENA Chain Hotels Market Review HotStats Publication Annual review on the UK hotel markets, European and MENA city markets For further information visit for the latest updates follow us on LinkedIn and Twitter, or contact: Pablo Alonso, General Manager +44 (0) pablo.alonso@hotstats.com Tony Oliveira, Business Development Manager +44 (0) tony.oliveira@hotstats.com HotStats 2015: UK, Europe & MENA Hotel Industry Report 3

5 HotStats Market Intelligence Reports Markets Available HotStats collects data from 1,650 properties representing close to 360,000 rooms in over 200 markets from 100 different brands in Europe, Middle East and North Africa (list available upon request). Generic Features All our reports detail up to 48 months of historical data depending on availability within the chosen set. The period of analysis can be directly adjusted within our interactive reports. We deliver the report in two UK business days. Prices start from 250 (excluding VAT). To order a report and select the set of hotels or to discuss bespoke options, please contact us at +44 (0) or enquiries@hotstats.com Demonstration reports are available on our website. Any report is subject to sample availability and validity in accordance with our confidentiality rules of set formulation. Additional terms and conditions apply. ¹ Rooms, Restaurants, Bars, Room Service, Conference & Banqueting, Leisure, Golf, Phone, Minor Operated Departments. HotStats 2015: UK, Europe & MENA Hotel Industry Report 4

6 The Europe & MENA City Market Review: Vienna Summary P&L: Vienna Full Service Hotels Variance Occupancy (%) 69.6% 70.1% -0.5 pts Average Room Rate ( ) % ROOMS Rooms RevPAR ( ) % TAC % Rooms Revenue 5.6% 5.2% 0.4 pts Rooms Total Cost % Rooms Revenue 36.2% 36.9% -0.7 pts Rooms Dept. Profit Conversion (%) 63.8% 63.1% 0.7 pts Total F&B RevPAR ( ) % C&B Room Hire per ava. Sq. Mtr. ( ) % Food CoS % Food Revenue 25.5% 25.5% 0.0 pts F&B / C&B Beverage CoS % Beverage Revenue 17.1% 16.8% 0.3 pts F&B Total Cost % F&B Revenue 83.4% 84.0% -0.6 pts F&B Dept. Profit Conversion (%) 16.6% 16.0% 0.6 pts A&G Total Cost % Total Revenue 9.8% 9.9% -0.1 pts UNDISTRIBUTED OPERATING EXPENSES (U.O.E.) TOTAL HOTEL S&M Total Cost % Total Revenue 7.4% 7.2% 0.2 pts P&M Total Cost % Total Revenue 5.3% 5.4% -0.1 pts Utility Expenses % Total Revenue 4.0% 4.2% -0.2 pts TRevPAR ( ) % Total Departmental Profit PAR ( ) % Payroll % Total Revenue 40.2% 41.3% -1.1 pts Total U.O.E. % Total Revenue 26.4% 26.7% -0.3 pts GOPPAR ( ) % GOP Conversion (%) 22.8% 21.6% 1.2 pts Departmental Revenue Contribution 2014 Market Segmentation Mix 2014 Rooms F&B Other 8.7% 10.9% 9.3% 6.1% 7.8% 7.2% Corporate 24.1% 23.6% 21.1% 24.0% 22.3% 26.0% 27.6% Leisure 18.7% Other 16.0% 67.7% 68.0% 66.7% 71.6% 66.2% 65.2% Tours / Groups Conference 16.0% 15.8% B.A.R. 9.4% Budapest Frankfurt Istanbul Paris Rome Vienna HotStats 2015: UK, Europe & MENA Hotel Industry Report 22

7 Glossary A&G - Administrative & General This covers items that are not easily attributable to any one department. It includes items such as management, administration, finance and accounting, stationery, uniforms, training, recruitment, etc. A&G Total Cost Total A&G Costs includes all A&G Expenses, A&G Payroll and Credit Card Commission costs. ARR - Average Room Rate This is the average price each room is sold for in the hotel or group of hotels being analysed. It is calculated by dividing the room revenue by the number of rooms let. B.A.R (Segment) Rooms let at the full published tariff and Best Available Rate on the day. Includes single and double occupancy both midweek and weekend. Will not include complimentary rooms. Beverage Revenue Beverage revenues are derived from sales of alcoholic beverages, soft drinks and cigarettes. Includes revenues from restaurant, conference and banqueting, room service and minibar operations and may include package revenue allocations but excludes beverage allowances. C&B Room Hire Revenue Conference and banqueting other income (conference and banqueting room hire, equipment hire charges and music & entertainment recharges). C&B per ava. Sq. Mtr. The revenue or cost being analysed is divided by the total square meterage of all meeting rooms, without any double counting (eg. where one large room subdivides into a number of smaller rooms) available for sale during the period under analysis. (Break out areas are excluded of the total C&B square meters.) Conference (Segment) Rooms let as part of a conference package rate to delegates attending a conference at the hotel. Includes Incentive groups with hotel meeting usage. Corporate (Segment) Rooms let at tariffs centrally negotiated with corporate clients as part of a corporate rate or loyalty programme or let at tariffs locally negotiated with corporate clients made available to their employees and clients. Includes corporate rate programmes, agency/business house corporate discount rates, redemption of Airmiles or other loyalty schemes, locally negotiated deals of tariff reduction for a guaranteed level of business, negotiated rates for one-off commercial groups, exhibition and convention attendance rates. COS - Cost of Sales The cost of raw materials prior to their resale. F&B - Food & Beverage This covers restaurants, bars, room service and banquets and conferences (including room hire, etc.). Food Revenue Total food revenues are derived from food sales, including sales of coffee, tea and milk to guests. Includes revenues from restaurant, conference and banqueting, room service operations and packaging revenue allocations, but excludes food allowances. GOP - Gross Operating Profit For the purposes of this study, Gross Operating Profit is defined as the total departmental operating profit, less all undistributed operating expenses and is synonymous with IBFC (income before fixed charges). GOP Conversion The proportion of revenues from all operated departments that are converted into profits. Leisure (Segment) Rooms let to individuals at a weekend rack rate where that rate is lower than the normal published midweek rack rate. Rooms let at a discounted tariff or packaged programme aimed at leisure consumers. Includes themed activity weekends, weddings, banquets, leisure or weekend break programmes, "shopper break" tacticals, Christmas and Easter packages. MOD - Minor Operated Departments These are departments within the hotel that are not covered in any of the other headings. For example, if the hotel offers guests laundry service, this would be a Minor Operated Department. Other examples include equipment rental or pool supplies. Occupancy This is the percentage of available rooms that have been sold over the period being analysed. It is calculated by dividing the number of room nights sold during the period by the total number of rooms available for sale in the same period. Other (Segment) All other room let segments, not already included under B.A.R., Conference, Corporate, Leisure or Tours/Groups segments. Includes aircrew and delayed flight air passenger rooms plus all other non-categorised business. Other F&B Revenue All revenue generated in the food and beverage department, apart from through sale of food and beverages. This includes room hire, service charges, cover charges, etc. Other Revenue All revenue generated in any other department, apart from F&B and Rooms. This includes revenues from M.O.D, rentals, etc. Dept. Profit Conversion The proportion of revenues that are converted into profits for a specific department. P&M - Property & Maintenance Includes all items relating to the maintenance of the property and equipment. HotStats 2015: UK, Europe & MENA Hotel Industry Report 23

8 P&M Total Cost The total of all P&M Expenses and P&M Payroll. PAR - Per Available Room A measure that may be applied to any revenue or cost to facilitate analysis. The revenue or cost being analysed is divided by the total number of bedrooms available for sale during the period under analysis. TAC - Travel Agents Commission Includes travels agents commissions (regardless of whether for rooms or other revenues), Reservation fees, GDS fees, third party representation fees and internet booking fees. Total Departmental Profit Sum total of operating profits from all the operated departments. Payroll The sum total of salaries, wages and employee benefits from all operated departments and all undistributed operating categories. Percent of Departmental Revenue Expresses any given criteria as a percentage of the total revenue generated by the specific department to which it relates. Rooms RevPAR - Revenue Per Available Room Also known as Rooms Yield. Calculated by dividing the room revenue by the number of rooms available for sale during the period under analysis. Rooms Revenue Revenues from bedrooms and suites rented or leased for part of a day, week or longer, including revenues raised from no-show charges where collection is reasonably certain and excludes allowances and cancellation fees. Rooms Total Cost The total of all Rooms Expenses and Rooms Payroll. S&M - Sales & Marketing Includes all activities relating to the advertising and promotion of the property. S&M Total Cost The total of all S&M Expenses and S&M Payroll. Total Revenue Sum total of net revenues from all the operated departments plus rentals and other income. Tour/Groups (Segment) Rooms let to guests purchasing a tour series or FIT package or arriving as part of an ad hoc group. TRevPAR Sum total of net revenues from all the operated departments plus rentals and other income per available room (see PAR). UOE - Undistributed Operating Expenses This classification is used for administrative and general expenses, marketing expenses, energy costs, and property operation, and maintenance expenses. Each of these can be considered as an individual entity. Utility Expenses Includes the total hotel costs of electricity, gas, oil, water and other fuels which should not be recharged to any operated departments. Also any Climate/Environment charges (eg. Carbon Reduction Commitment Energy Efficiency Scheme) to be included. Variance The year on year difference in performance, displaying better or worse performance compared to prior year. HotStats 2015: UK, Europe & MENA Hotel Industry Report 24

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