UK hotel managers confident of RevPAR growth
Confidence amongst UK hotel general managers is increasing throughout 2010. Looking towards the next three months, 72% of GMs are either optimistic or very optimistic about their hotel’s trading performance.
Additionally, hoteliers are more optimistic about the coming three months than they have been for the last year. According to the latest Hotel Confidence Monitor by TRI Hospitality Consulting, 54% of respondents are more optimistic this quarter compared to last. This represents an increase of 16 percentage point since January.
Occupancy expectations for Q2 are positive with 81% of general managers expecting increases or no change. This proportion of respondents has increased by 23 percentage points from 58% in Q1 2010. The trend is unquestionably positive and reflects the recent performance improvement of the UK hotel industry.
The latest Hotel Confidence Monitor shows that 66% of respondents predict either growth or no change in average room rate during Q2. As a result room yield (RevPAR) expectations have risen dramatically, with 81% of respondents predicting either growth or no change during the current quarter compared to Q2 2009.
“Confidence levels and performance expectations are continuing to improve as the hotel industry shows signs of progressive recovery.” said David Bailey, deputy managing director, TRI Hospitality Consulting.
Regarding this quarter’s sales and marketing expenditure, approximately 83% of respondents intend to increase or maintain their Q2 budget in comparison to 2009. Of the 103 general managers who completed the Hotel Confidence Monitor survey, 92% do not expect to reduce staffing levels during Q2 2010 as compared to the previous year.
As a result of the positive performance outlook, 84% of respondents are either expecting to maintain or increase their gross operating profit (IBFC) during the current quarter.