I've been questioning to myself for years now, whether or not hotels are more successful outside of the US. The "amenities" blow away the US hotels and most times, I find fresh fruit or cookies waiting for me (the hotels with cookies obviously know me better). Just seems like they "spend more" on their guests than the North American hotels do.
Just thought I'd ask.
Just thought I'd ask.
I am not sure they would be more profitable.... they just choose to spend their budgets in different ways for their customers. Their wages may be lower... taxes could be lower... many different things could be at work. I guess most are probably similarly profitable or not.... it just looks different to the customer because of what some choose to spend it on.
Quote:
I"m not really looking to open up their books and see their profitability, unless they are publicly traded, then no, it's public information. I was simply asking if they have a higher margin, therefore are able to treat their customers a little better than most hotels in NA.Originally Posted by Cheap Elite
How would we know? I could be wrong but isn't that proprietary information?
Not proprietory info at all, here is the latest SEC filing extract on the subject
Six Months Ended
June 30,
2009 2008 Variance
Worldwide (56 hotels with approximately 19,600 rooms)
REVPAR $ 121.88 $ 180.95 (32.6 )%
ADR $ 196.07 $ 248.22 (21.0 )%
Occupancy 62.2 % 72.9 % (10.7 )
North America (29 hotels with approximately 12,000 rooms)
REVPAR $ 128.81 $ 187.76 (31.4 )%
ADR $ 195.73 $ 250.96 (22.0 )%
Occupancy 65.8 % 74.8 % (9.0 )
International (27 hotels with approximately 7,600 rooms)
REVPAR $ 110.97 $ 170.21 (34.8 )%
ADR $ 196.69 $ 243.59 (19.3 )%
Occupancy 56.4 % 69.9 % (13.5 )
(1) REVPAR is calculated by dividing room revenue, which is derived from rooms and suites rented or leased, by total room nights available for a given period. REVPAR may not be comparable to similarly titled measures such as revenues.
Six Months Ended
June 30,
2009 2008 Variance
Worldwide (56 hotels with approximately 19,600 rooms)
REVPAR $ 121.88 $ 180.95 (32.6 )%
ADR $ 196.07 $ 248.22 (21.0 )%
Occupancy 62.2 % 72.9 % (10.7 )
North America (29 hotels with approximately 12,000 rooms)
REVPAR $ 128.81 $ 187.76 (31.4 )%
ADR $ 195.73 $ 250.96 (22.0 )%
Occupancy 65.8 % 74.8 % (9.0 )
International (27 hotels with approximately 7,600 rooms)
REVPAR $ 110.97 $ 170.21 (34.8 )%
ADR $ 196.69 $ 243.59 (19.3 )%
Occupancy 56.4 % 69.9 % (13.5 )
(1) REVPAR is calculated by dividing room revenue, which is derived from rooms and suites rented or leased, by total room nights available for a given period. REVPAR may not be comparable to similarly titled measures such as revenues.
Speaking for Asia at the very least. Hotel's will charge rates that are very high in comparison to local standards and as a result will have more room for profit. A quick look at the Westin Beijing (Chaoyang) shows that the going room rate is abou 1500 RMB (which works out to about 219$, a comparable rate to a westin in the US).
In Asia, for example, it is possible to get English trained front desk staff for a fraction ( half to a quarter ) of what that person would cost in the US. Factor in the lower labor cost, as well as the premium price, the property has to provide something different to attract the business travelers (not just foreigners) who would pay such a rate.
In Asia, for example, it is possible to get English trained front desk staff for a fraction ( half to a quarter ) of what that person would cost in the US. Factor in the lower labor cost, as well as the premium price, the property has to provide something different to attract the business travelers (not just foreigners) who would pay such a rate.