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Deloitte & Touche Hotel Survey
Potentially challenging year
ahead for hotels
by Anthony Manduca
Deloitte & Touche yesterday issued the results of their
Hotel Survey for October to December 2000 together with flash
results for the first few months of 2001 at a presentation to
members of the Malta Hotels and Restaurants Association.
Deloitte & Touche announced that its Hotel Survey showed
that although tourist arrivals for 2000 were unchanged on 1999
the combination of a shorter stay and an increased bed-stock
meant lower room occupancy was reported in each hotel category
for the year. In fact, its was only thanks to an improved December
(compared to 1999 which had the impact of the Millennium scare)
that overall occupancy results were only two to three percentage
points lower for the year. In 2001 the restructuring of the
German market is expected to have a negative impact on certain
hotels.
Flash occupancy results for January to March 2001 (based on
a telephone survey of 37 hotels) suggests that while 5-star
hotels have had a much improved January and March, 4-star hotels
are likely to report a slightly lower occupancy level than for
the same period last year. For once however, 3-star hotels are
expected to report more up-beat results for January and February
than their 4-star colleagues.
During the last quarter of 2000 German arrivals fell by nearly
20 per cent, offsetting gains made elsewhere. UK arrivals reported
an 8.5 per cent increase for the same period, registering a
month-on-month gain in the last five out of six months. This
seems to be the beginning of a trend for 2001 with similar results
in January and February.
Nick Captur, Business Advisory Partner at Deloitte & Touche
commented: “It would appear that 2001 will be a challenging
year for the industry, as hoteliers therefore seek increases
in the UK and other markets to compensate for the restructuring
of the German market. At the same time there is also a changing
market mix so that 5-star hotels which appeal to conference
and incentive market segments are less vulnerable than properties
aimed solely at holidaymakers and tour operator business.”
Room rates for 2000 as a whole improved significantly in the
5-star sector, to the extent where they offset the decline in
occupancy. For 2000 5-star hotels reported an AARR (average
achieved room rate) of Lm34.47 with 66 per cent occupancy compared
to Lm29.75 in 1999 with 68 per cent occupancy. The number of
beds in this sector also grew, with the re-opening of the Malta
Hilton. In the 4-star category room rates for the year averaged
Lm15.38 with occupancy of 73 per cent compared to Lm14.80 in
1999 with 76 per cent occupancy whereas 3-star properties had
room rates of Lm8.59 at 72 per cent occupancy compared to Lm8.48
and 74 per cent respectively in 1999.
Deloitte & Touche conducts the Hotel Survey every three
months on behalf of the MHRA. The survey is conducted through
the support of Bank of Valletta plc.
The resulting survey report is the most comprehensive and up-to-date
source of information on trends within the hotel industry covering
both earnings and underlying costs. It is extensively used by
the MHRA to ensure that the interests of the hotel industry
are protected. Participation in the survey typically covers
95 per cent of the 5-star sector, 70 per cent of the 4-star
sector and around 50 per cent of the 3-star sector. Participating
hotels receive a copy of the survey report free of charge immediately
after the results are presented to MHRA members, allowing them
to benchmark their own performance to the respective sector
averages. All hotels are urged to regularly participate in the
survey
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