STR Reports On 2011 Global Profitability

　　STR Global on Wednesday released preliminary data of its 14th annual Profitability Survey 2012 for selected cities, presenting detailed data on hotel revenues and costs.

　　In Buenos Aires, GOP per occupied room (GOPPOR) ratio in U.S. dollars increased 3.9 percentage points year on year to a 29.9% share of total revenue. The growth was led by increases in occupancy, ADR and improvement in food and beverage profit, which saw total F&B revenue increasing by US$15.91 per occupied room (POR) year on year. During the same period, total F&B cost increased by US$6.73 POR.

　　In Europe, GOPPOR ratio in Warsaw and Berlin increased by 2.2 percentage points and 0.5 percentage points, respectively, compared to the previous year. The growth in Warsaw was led mainly by an increased ADR (2.1%), as well as declining rooms payroll and related expenses by 6.1% POR. In Berlin, GOPPOR growth was led in 2011 by increased total revenues (€7.21 POR) year on year, benefiting from a relatively low increase in rooms payroll and related expenses (€0.33 POR) and undistributed operating expenses (€0.12 POR).

　　In China, Tianjin GOPPOR increased by 19.5% year on year in 2011 as RevPAR grew by 18.2%. Tianjin reported increasing rooms department profit (2.4%) while F&B profit declined by 8.8%.

　　In Delhi, declining rate and occupancy in 2011 led the city RevPAR to decrease year on year by 14.2% to US$114.53. As a result, room department profit POR declined by US$22.08, leading GOPPOR to decrease by 16%.

　　In Egypt, Sharm el Sheikh saw total revenues POR declining to US$118.69 (21.7%) in 2011 as the Arab Spring impacted the leisure destination. With declining revenues, the destination saw rising costs. Total room costs rose 13.8% POR, and total F&B costs increased 8.4% POR. As a result, GOP declined by US$46.77 POR.

　　Over 2,400 hotels participated in the 2012 profitability survey. The data is reported on per available room (PAR), per occupied room (POR) basis and year-on-year percentage changes.