64% of hotel managers concerned for 2009

28th January 2009, 12:14pm

According to a recent survey, 64% of general managers of UK chain hotels expect to be less profitable in the first quarter of 2009 compared to the same period a year earlier.

Of the 116 general managers who responded to the newly launched Confidence Monitor from TRI Hospitality Consulting, 22% expect their profits to remain the same and 14% anticipate profit growth.

Although the majority (70%) of respondents are less positive now than they were three months ago, nearly one in three remains optimistic about trading during the first quarter of 2009.

David Bailey, deputy managing director of TRI , commented: "Given current market conditions it is no surprise that the majority of general managers expect a decline in profit. But the range of responses is broader than expected given the current allpervading climate of gloom. Nearly one third are determined to see the glass as half full rather than half empty."

In terms of demand for their hotels in the first three months of 2009, 43% of respondents expect a drop in room occupancy of up to 5 percentage points.

Nearly one third anticipate a fall of more than 5 percentage points and 26% expect either an increase or no change in their occupancy levels.

Regarding their average room rates, the largest proportion (42%) expect a decline of up to 5% and just over a quarter (27%) expect their average room rate to drop by more than 5%.

Nearly one in three managers expects either no change or growth in their overall average room rate.

Meanwhile 39% expect their rooms revpar to decline by more than 5%. More than a third (38%) anticipates a year-on-year drop of less than 5%. Again, a significant but smaller proportion (24%) expects either no change (7%) or growth (17%) in rooms revpar.

Nearly eight out of ten of people decreased their staffing levels in the last quarter of 2008.

Bailey added: "In a downturn general managers must perform an increasingly delicate balancing act between maintaining service levels and controlling costs. Most hoteliers reacted quickly and made payroll cuts last year in anticipation of tough times ahead. In view of this, nearly half of respondents are looking to maintain staffing levels this quarter."

Related Articles:

• 01 Oct 2009 - European hotels experience a weak August
• 28 Sep 2009 - Holiday makers boost occupancy levels for UK hotels
• 26 Aug 2009 - London Hotel occupancy exceeds 2008 levels
• 18 Aug 2009 - UK hotel general managers remain positive
• 28 Jul 2009 - Occupancy levels hold up at London hotels
• 28 Apr 2009 - Lower hotel room rates keep occupancy high
• 27 Apr 2009 - UK hotel managers are more optimistic
• 24 Apr 2009 - UK hotels experience heavy falls in profit
• 25 Mar 2009 - Profit down by 17% at London hotels
• 03 Mar 2009 - Hotel's revenue and profit continues to fall

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