Confidence amongst UK hotel general managers is at a high for 2009. Looking towards the next three months, 61% of respondents are either optimistic or very optimistic about their hotel’s trading performance. — Photo by HotStats Limited

Confidence amongst UK hotel general managers is at a high for 2009. Looking towards the next three months, 61% of respondents are either optimistic or very optimistic about their hotel’s trading performance.

For the fourth successive quarter hoteliers are increasingly optimistic. According to the latest Hotel Confidence Monitor by TRI Hospitality Consulting, 50% of respondents are more optimistic than they were three months ago, equivalent to a 34 percentage point increase since January.

Occupancy expectations for Q4 are mixed, with general manager sentiment clearly divided. However since the last Hotel Confidence Monitor, the proportion of respondents who envisage either growth or no change to occupancy have increased by 15 percentage points to 58% (current quarter compared to Q4 2008). The trend is unquestionably positive.

Of the 107 general managers who completed the survey, a quarter of the respondents did not project a decline in average room rate during Q4. As a result, rooms revenue (RevPAR) expectations have risen dramatically with 33% of respondents predicting either growth or no change during the current quarter compared to Q4 2008.

“Occupancy and average room rate expectations have continued to improve since January, ending 2009 with more optimism and improved confidence.” said David Bailey, deputy managing director, TRI Hospitality Consulting.

Regarding this quarter’s sales and marketing expenditure, approximately 75% of respondents intend to increase or maintain their Q4 budget in comparison to 2008. In terms of staffing levels, eight in ten respondents did not project a decline during Q4 2009 in comparison to the previous year.

The Hotel Confidence Monitor results show a significant improvement in the outlook for gross operating profit (IBFC), with 55% of respondents either expecting to maintain or increase their profitably during the current quarter.

The Hotel Confidence Monitor by TRI Hospitality Consulting was conducted by email, via an online survey, between 21 and 30 October 2009. A total of 107 UK chain hotel general managers responded to the survey. No single geographical region or hotel brand was disproportionately represented. Please refer to the following pages for a full summary of the results and contact details.

David J. Bailey
Deputy Managing Director
+44 (0) 207 892 2202
HotStats Limited

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