Gross Operating Profits Rising in Most Global Markets, but Falling in Middle East

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According to London-based STR Global's Annual Profitability Survey 2011, gross operating profit per available room (GOPPAR) rose in Asia/Pacific, Europe and Latin America whilst falling in the Middle East.

The survey, in its 13th year, contains detailed data on hotel revenues and costs showing the dynamic evolution of the sector by city, country and region.

"As a strategic tool, the Annual Profitability Survey helps all stakeholders analyze markets, benchmark, budget, optimize revenues and produce feasibility studies", said Elizabeth Randall, managing director of STR Global.

Data presented includes that collected on room, food and beverage, other operational revenues and costs. Reporting on a Per Available Room (PAR), Per Occupied Room (POR) and the percentage change in performance over the previous year allows for revealing comparative analysis.

Drilling down, Shanghai benefitted from the World Expo with a 75 percent increase in GOPPAR, while Abu Dhabi suffered from its oversupply of hotel rooms with a decrease of more than 40 percent. Ratio analysis provided in the Annual Profitability Survey shows that Mecca has the highest ratio of Gross Operating Profit to revenue with 68.5 percent whilst the Algarve has the lowest with 14.7 percent. The lowest payroll to revenue ratio is found in Sharm El Sheikh with 11.8 percent whilst the highest is in Athens with 46.4 percent.

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