Global Hotel Market Sentiment Survey 2010
Cautious Optimism Returns as Hotel Operators Feel the Worst is Over
Results from the latest edition of the Global Hotel Market Sentiment Survey shows that hotel operators believe that the worst of the crisis is behind them and that 2010 will be the beginning of the long road to recovery. The survey, carried out every six months by Horwath HTL the world’s foremost firm of hospitality consultants, concentrates on four key questions to gauge the level of industry feeling in the short term, and the key indicators driving the sentiment.
Robert Hecker who heads up Horwath HTL in Asia said “It is too early to say if this feeling will translate into tangible results this year, but if the market feels we are at the bottom and the only way is up, that can only have a positive effect on the industry”
The figures show a change in perception, reversing the trend of last year which showed that six months ago, the majority of respondents thought that conditions would get worse than they had at the beginning of the year. Not surprisingly, the regions that displayed most resilience to the global crisis have come back the strongest. Asia and the Oceania moved from scores of -41 and -48 six months ago, to +47 and +42 now. Europe, which was the most pessimistic region at the time of the last survey, is now, just, in positive territory and feels that 2010 will probably be the same as last year, but not worse. Hoteliers in America, which has been possibly the hardest hit region in the world over the last 18 months, now feel more positive about the coming year than they did in the middle of last year.
Interesting, and another sign perhaps of confidence creeping back, most of the respondents thought that their local markets would stay the same, or slightly improve over the coming year in average room rate and occupancy, and that their own hotel would outperform the market. Most of the participants see average room rates remaining more or less the same in 2010, with weak corporate and leisure group business demand, but expect a slight improvement in occupancy, driven by the Leisure FIT business.
Michael O’Hare, Managing Director of Horwath HTL in Moscow said “It is good to see some positive news in the sector after two very tough years. We have seen a noted increase in requests for Advisory services and Asset Management as owners increasingly focus on operating performance to protect their investments. We hope this means a stabilisation of room rates and a boost in occupancy”
Overall results at a glance: (-150 - +150)
About The Survey
Horwath HTL has created an index to formulate an overall average sentiment score from all the survey scores. Points are assigned to each response and compounded accordingly. The index uses a scale of negative 150 to positive 150 in which negative 150 indicates a state of absolute pessimism, zero indicates unchanged expectations and plus 150 indicates a very optimistic outlook.
The survey focuses on four questions, the performance of your local market, the performance of your own property, the effect of various macro-economic drivers and the effect on four key market segments.
