Hotel industry fares well in 2001, study shows

IRISH hotels performed much better than expected last year with overall sales marginally down on record 2000 figures.

A survey by management consultants Horwath Bastow Charleton found that although smaller hotels

experienced a difficult year, average sales for the industry as a whole were just down on 2000 levels, and hotels in the Dublin area actually reported sales growth.

This was an excellent result in a year when the industry was hit by the September 11 terrorist attacks, the foot-and-mouth crisis and the global economic downturn.

The decline in average hotel occupancy levels to just under 66% was modest in light of the challenges faced by hoteliers in 2001. The decrease, however, was partially compensated for by a 1.7% increase in average room rates.

Dublin reported sales growth in 2001 with total sales increasing by 4% on 2000 levels. The western seaboard and Northern Ireland, however, reported decreases in occupancy and profit per room.

Luxury and first-class hotels performed well in 2001. Mid-price and economy hotels, however, had a difficult year. Although the average daily room rate for Irish hotels increased by 6.9% in 2001, this benefit was eroded by a substantial increase in operating costs throughout the sector.

Gross profit margins in food and beverage increased marginally for all regions except Northern Ireland.