Hotel Study 2005 marks an important landmark as, with its conclusion, it is possible to come to conclusions about trends. In particular, the database of participants now covers - to a large extent with a steady sample - the years after 2002.

It is, therefore, possible to reach useful, albeit not optimistic, conclusions regarding the evolution and the management of hotels.

In a nutshell, the data shows that 2004 was overall a difficult year but alos illuminates a serious management problem. For example, 2004 was an Olympic year for Athens and, comparing it with the previous year we observe:

• a drop in occupancy from 55% in 2003 to 51% in 2004,
• significant rise in ARR from Euro 108 to Euro 197
• and consequently in RevPAR from Euro 59 to Euro 93;
• despite this G.O.P. rose only marginally from 13% to the still low to 17,4%;
• also, labour cost as a percentage of sales fell from 52% to 49%, but in real numbers rose by 10%;
• finally, marketing expenses were reduced by 15% and represent less than 2% of sales, while G&A rose by 31% and represent more than 6% of turnover.

In other words, the impressive improvement in market conditions did not lead to a similar improvement in profitability. Moreover, marketing activity was reduced not only proportionately but also in absolute terms, which will have an adverse impact on the long term profitability of the sector.

In addition to the general results, the analysis is also performed for the following 4 segments of the market:

• 5 star hotels
• 4 star hotels
• City hotels (5 and 4 star)
• Resort hotels (5 and 4 star)

Data analysis (market mix, occupancy, ARR, RevPAR, payment terms, P&L analysis etc.) covers data from 2004 on its own, but also in comparison to 2003 and 2002.

The Hotel Study 2004 was carried out by JBR Hellas under auspices of SETE, with the support of Travel Daily News. For more information please contact Dr. Aris Ikkos.

In order to receive the full results of the study, you need a username and a password, which is handed out to those hotels that have participated in the study. If you would like to receive your own copy, complete and send us the questionnaire in pdf or word format.

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