Global Hotel Operators Remain Cautiously Optimistic, But Only Just
London -- Results from the latest edition of the Horwath HTL Global Hotel Market Sentiment Survey show that hotel operators in all regions of the world continue to believe that the recovery in operating performance is on track, although without any strong conviction that the worst is over. The survey, carried out every six months by Horwath HTL the world’s foremost firm of hospitality consultants, concentrates on four key questions to gauge the level of industry feeling in the short term, and the key indicators driving the sentiment.
Ewout Hoogendoorn, Managing Director of Horwath HTL in the Netherlands said “In Europe, many markets have been enjoying high occupancy levels without a lift in rate, a clear indication that there is some way to go before a corporate led upturn. However, the fact that the hotels are filling with leisure business will give operators hope of at least stabilising revenue in the short term”
This is perhaps best illustrated by the disappointment in the sluggish return of average room rate. In both the European and American region, hoteliers were overall slightly disappointed with average rate growth compared to what they were expecting, minus 2 and 7 respectively, whereas Occupancy levels performed to expectations. It is no surprise then that many hoteliers now expect more of the same for room rate performance in the last half of the year, with American operators expecting exactly the same (0) and Europeans scoring only slightly more (10). Expectations for Occupancy levels are slightly better, reflecting the greater volume of business that has been taken as rate has been sacrificed. Asia Pacific and Africa and the Middle East and more optimistic, with slight improvements in both room rate and occupancy forecast.
The last question looked at how the operators felt their hotel would do for the last six months of the year, compared to first. In the last survey in January, all of the regions felt that their hotel would outperform the market. In this survey, operators almost universally felt that the market would perform the same or slightly better than their property.
Damien Little a Director of Horwath HTL in China, and the founder of the survey said “The way the regional results in the survey mirror the wider economic picture is extremely interesting and shows how interlinked the industry is to wider economic industry trends. We see an acceptance in the results that there are no quick fixes and that the upturn will be a long hard road. ”
About The Survey
Horwath HTL has created an index to formulate an overall average sentiment score from all the survey scores. Points are assigned to each response and compounded accordingly. The index uses a scale of negative 150 to positive 150 in which negative 150 indicates a state of absolute pessimism, zero indicates unchanged expectations and plus 150 indicates a very optimistic outlook.
The survey focuses on four questions, the performance of your local market, the performance of your own property, the effect of various macro-economic drivers and the effect on four key market segments.
About Horwath HTL
Horwath HTL is a member of Crowe Horwath International, a professional association of accounting and management consulting firms founded in New York in 1915. Crowe Horwath International is currently ranked among the top ten international professional service groups with offices in close to 400 cities in 88 countries.
Horwath HTL (Hotels Tourism and Leisure) is one of the pre-eminent consulting specialists in the hotel, tourism and leisure industries, providing unequalled experience and expertise for client projects around the world through a combination of detailed local knowledge and international understanding. Horwath HTL is currently the world's largest consulting organization specialized in the hospitality industry, with 50 offices in 39 countries.
James Chappell (HTL)
Global Marketing Director