London-based STR Global has just released this week their Annual Profitability Survey 2012 for selected global hotel markets.
Now in its 14th year, the survey contains detailed data on hotel revenues and costs, showing the dynamic evolution of the sector by city, country and region.
"We are pleased to have increased this year's participation level particularly in Latin America, China and across the Middle East", said Elizabeth Randall, managing director of STR Global. "This edition will include new markets across emerging economies, which will provide strategic information for hoteliers, investors and developers seeking to understand changes in hotel profitability. Whilst our daily and monthly STAR reports provide market positioning information to operators, our profit-and-loss data helps both owners and operators during budget preparation at understanding gross operating profit (GOP) in relation to revenues and costs breakdown."
In Buenos Aires, Argentina, GOP per occupied room (GOPPOR) ratio in U.S. dollars increased 3.9 percentage points year on year to 29.9 percent share of total revenue. The growth was led by increases in occupancy, average daily rate (ADR) and improvement in food-and-beverage profit, which saw total F&B revenue increasing by US$15.91 per occupied room (POR) year on year. During the same period, total F&B cost increased by US$6.73 POR.
In Europe, GOPPOR ratio in Warsaw, Poland, and Berlin increased by 2.2 percentage points and 0.5 percentage points, respectively, compared to the previous year. The growth in Warsaw was led mainly by an increased ADR (+2.1 percent), as well as declining rooms payroll and related expenses by 6.1 percent POR. In Berlin, GOPPOR growth was led in 2011 by increased total revenues (+ €7.21 POR) year on year, benefiting from a relatively low increase in rooms payroll and related expenses (+ €0.33 POR) and undistributed operating expenses (+ €0.12 POR).
In China, Tianjin GOPPOR increased by 19.5 percent year on year in 2011 as RevPAR grew by 18.2 percent. Tianjin reported increasing rooms department profit (+2.4 percent) whilst F&B profit declined by 8.8 percent. In Delhi, India, declining rate and occupancy in 2011 led the city RevPAR to decrease year on year by 14.2 percent to US$114.53. As a result, room department profit POR declined by US$22.08, leading GOPPOR to decrease by 16 percent.
In Egypt, Sharm el Sheikh saw total revenues POR declining to US$118.69 (-21.7 percent) in 2011 as the Arab Spring impacted the leisure destination. With declining revenues, the destination saw rising costs. Total room costs rose 13.8 percent POR, and total F&B costs increased 8.4 percent POR. As a result, GOP declined by US$46.77 POR.