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Hotel Industry Report
www.hotstats.com
UK, Europe & MENA
2015
HotStats 2015: UK, Europe & MENA Hotel Industry Report
P R E V I E W
HotStats 2015 may not be published, reproduced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, agree-
ment or other document without prior consent.
FOREWORD 02
COMPANY PROFILE 03
MARKET INTELLIGENCE REPORTS 04
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 23-24
For Further Information
Pablo Alonso, General Manager
+44(0) 20 7892 2238
Tony Oliveira, Business Development Manager
+44(0) 20 7892 2234
HotStats Limited
83 - 87 Crawford Street
London W1H 2HB
Tel +44 (0)20 7892 2222
Visit www.hotstats.com
Follow us on LinkedIn and Twitter
£250.00 + VAT
HotStats 2015: UK, Europe & MENA Hotel Industry Report 2
P R E V I E W
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 complexi-
ties 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 Profitabil-
ity 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 comprehen-
sive historic database combined with powerful econometric forecasting tools applied by skilled and ex-
perienced 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, Buda-
pest, 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 & Banquet-
ing departments provided salvation with all three cities reporting increases in revenues and depart-
mental 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 3
P R E V I E W
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.
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 www.hotstats.com, for the latest updates follow us on LinkedIn and
Twitter, or contact:
Pablo Alonso, General Manager
+44 (0)20 7892 2238
Tony Oliveira, Business Development Manager
+44 (0)20 7892 2234
NEW
HotStats 2015: UK, Europe & MENA Hotel Industry Report 4
P R E V I E W
Markets Available
HotStats collects data from 1,650 properties represent-
ing 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 pe-
riod of analysis can be directly adjusted within our in-
teractive 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) 20 7892 2222 or [email protected]
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 Market Intelligence Reports
HotStats 2015: UK, Europe & MENA Hotel Industry Report 22
67.7% 68.0% 66.7% 71.6%66.2% 65.2%
23.6% 21.1% 24.0%22.3%
26.0% 27.6%
8.7% 10.9% 9.3% 6.1% 7.8% 7.2%
Budapest Frankfurt Istanbul Paris Rome Vienna
Rooms F&B Other
9.4%
15.8%
16.0%
16.0%
18.7%
24.1%
B.A.R.
Conference
Tours / Groups
Other
Leisure
Corporate
The Europe & MENA City Market Review: Vienna
Summary P&L: Vienna Full Service Hotels 2014 2013 Variance
ROOMS
Occupancy (%) 69.6% 70.1% -0.5 pts
Average Room Rate (€) 143.98 136.75 5.3%
Rooms RevPAR (€) 100.16 95.88 4.5%
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
F&B / C&B
Total F&B RevPAR (€) 46.74 46.14 1.3%
C&B Room Hire per ava. Sq. Mtr. (€) 0.93 0.98 -5.1%
Food CoS % Food Revenue 25.5% 25.5% 0.0 pts
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
UNDISTRIBUTED
OPERATING
EXPENSES
(U.O.E.)
A&G Total Cost % Total Revenue 9.8% 9.9% -0.1 pts
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
TOTAL
HOTEL
TRevPAR (€) 153.57 149.29 2.9%
Total Departmental Profit PAR (€) 75.55 72.04 4.9%
Payroll % Total Revenue 40.2% 41.3% -1.1 pts
Total U.O.E. % Total Revenue 26.4% 26.7% -0.3 pts
GOPPAR (€) 34.96 32.20 8.6%
GOP Conversion (%) 22.8% 21.6% 1.2 pts
Market Segmentation Mix 2014 Departmental Revenue Contribution 2014
Vienna
P R E V I E W
P R E V I E W
Glossary
A&G - Administrative & General
This covers items that are not easily attributable to any one
department. It includes items such as management, admin-
istration, finance and accounting, stationery, uniforms, train-
ing, 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 mid-
week and weekend. Will not include complimentary rooms.
Beverage Revenue
Beverage revenues are derived from sales of alcoholic bever-
ages, soft drinks and cigarettes. Includes revenues from res-
taurant, conference and banqueting, room service and mini-
bar 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 cli-
ents as part of a corporate rate or loyalty programme or let
at tariffs locally negotiated with corporate clients made avail-
able to their employees and clients. Includes corporate rate
programmes, agency/business house corporate discount
rates, redemption of Airmiles or other loyalty schemes, local-
ly 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.
Dept. Profit Conversion
The proportion of revenues that are converted into profits
for a specific department .
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 pro-
gramme aimed at leisure consumers. Includes themed activi-
ty weekends, weddings , banquets, leisure or weekend break
programmes, "shopper break" tacticals, Christmas and East-
er packages.
MOD - Minor Operated Departments
These are departments within the hotel that are not cov-
ered in any of the other headings. For example, if the hotel
offers guests laundry service, this would be a Minor Operat-
ed 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 divid-
ing 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, rent-
als, etc.
P&M - Property & Maintenance
Includes all items relating to the maintenance of the proper-
ty and equipment.
HotStats 2015: UK, Europe & MENA Hotel Industry Report 23
P R E V I E W
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 divid-
ed by the total number of bedrooms available for sale during
the period under analysis.
Payroll
The sum total of salaries, wages and employee benefits from
all operated departments and all undistributed operating cat-
egories.
Percent of Departmental Revenue
Expresses any given criteria as a percentage of the total reve-
nue 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 promo-
tion of the property.
S&M Total Cost
The total of all S&M Expenses and S&M Payroll.
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 depart-
ments.
Total Revenue
Sum total of net revenues from all the operated depart-
ments 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 depart-
ments plus rentals and other income per available room (see
PAR).
UOE - Undistributed Operating Expenses
This classification is used for administrative and general ex-
penses, 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 op-
erated 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 bet-
ter or worse performance compared to prior year.
HotStats 2015: UK, Europe & MENA Hotel Industry Report 24
HotStats Limited +44 (0)20 7892 2222
83-87 Crawford Street London W1H 2HB [email protected] www.hotstats.com