Our hotels have fared very well on the economic recovery last year. As part of our hotel management strategy we monitor the loading factors of the air travel markets closely which give us clear indications of overall travel trends. It allowed us to be well geared up and prepared to ride at the front of the wave. REVPAR increased as much as 26%.
The biggest challenge we faced in 2010 along with fellow hoteliers on the European continent was caused by the eruption of the Eyjafjallajokull volcano in Iceland. Especially our resort and beach hotels were impacted by the large number of cancelations of flights due to the ash clouds.
Overall we have seen very positive results with notable REVPAR and GOPPAR increases in our hotel management portfolio. Here our results;
Qbic Hotel WTC Amsterdam, 0* – www.qbichotels.com
This is quite an exceptional hotel. Being a modular concept, we increased the inventory of this property by 46% mid 2009. Yes you read it right; we added more rooms, which is easy with this flexible real estate model. We simply rented another floor and put in more units. We managed to increase REVPAR by 12,7% (€7,66) over the second half of the year and 4% overall in 2010. Occupancy is trending above 95%.
TownHouse Hotel Maastricht, 3* – www.townhousehotels.com
This newly opened trend setting hospitality concept showed an impressive performance in its first year. REVPAR targets were outperformed by 6.6% or €4,30. The first part of the year, while ramping up corporate demand, was not as strong as the second half of the year where REVPAR expectations were exceeded by 26% or €17,00. Occupancy was consistently above 90% allowing for operations and costs to be effectively controlled.
Pantone Hotel Brussels, 3* – www.pantonehotel.com
This colorful design hotel in the heart of Brussels opened its doors on April 12th,. The new Pantone hotel concept proved its potential, and within a few months profitability was reached. In the first year REVPAR surpassed budget by 24,5%. or € 14.00.
Theater Hotel Brussels, 2* www.theaterhotelbrussels.com
This cozy boutique hotel in Brussels is a test case for a larger hotel concept. Since Xotels took over revenue management for this property, REVPAR increased by a little over €20.00. Through more efficient distribution occupancy was pushed up with 24% and ARR with €2.00. The hotel is currently outperforming its revenue budgets by 23%.
Es Moli Mallorca, 4* – www.esmoli.com
Joining us in August of this year we turned around this luxury resort property from a 15% REVPAR decrease in the first half of 2010 to a 9% or €11.00 or REVPAR increase in the second half of the year.
Hotel San Sebastian Playa Sitges, 4* – www.sitges-hoteles.com
Managing this hotel since September the Xotels Hotel Management Group increased REVPAR by 14% or € 6,50 for the fall of 2010. Our efforts were also focused on the 2011 strategy, for which a shift in distribution mix has been planned. Reducing the dependency on tour operators will add another 20% of revenue to the hotels’ income statement, forecasting a €16.00 REVPAR increase in 2011.
Dynastic Hotel Benidorm, 4* – www.hoteldynastic.com
Unfortunately Benidorm was heavily impacted by the ash cloud crisis. We estimate the lost revenues in the months of April, May and June to exceed €150.000. Taking this into consideration, we are pleased with a flat Year Over Year REVPAR result. REVPAR in the other months increased with approximately €17.00 as a result of a more effective mix of Occupancy and Average Rate.
Hotel Gala Placidia Benidorm, 3* – www.hotel-gala-placidia.com
Also located in Benidorm, Xotels managed to increase REVPAR by €2.00 irrespective of the volcano challenges from Iceland. We smartly traded occupancy for a substantial increase in average room rate, driving up revenues and profit in peak season. Next year Xotels revenue management specialists will continue this upward trend and build additional occupancy at higher room rates.
Overall 2010 has brought very positive results in terms of REVPAR and GOPPAR. Our revenue management outsourcing clients have all decided to sign up for another year of Xotels hotel management services. We are also in negotiation with some to add more properties to our portfolio in 2011.