PKF Country Trends 2012 reports resilience in hotel sector

International hotel performance has shown some resilience despite economic headwinds. This is one conclusion from PKF accountants and business advisers’ Country Trends 2012 annual digest of the financial performance of the hotel sector in the UK, mainland Europe, Middle East and Africa.

The report is not offering real time data, but rather publishing analysis on data from the financial year 2011. Nevertheless, it offers insights into the relative performance of the sector on an international scale.

Those involved in the hospitality industry will probably not need telling that EMEA hotels suffered a tough 2011.

Northern Africa had the aftermath of the Arab Spring and room yields in the region dropped 0.4 per cent as occupancy fell 2.9 per cent, according to the report.

Results differ noticeably from region to region. European hotels performed better in terms of absolute growth value, while Middle East and Africa hotels were very successful in keeping costs down thanks to low operating costs and payroll percentages.

Other key findings include:

  • World international arrivals were up 4.6% in 2011
  • Malta’s rooms yield grew by 28.4%
  • Italy was the top performer for rooms yield at €157.48
  • Kuwait’s Income Before Fixed Charges (IBFC) margin remained the highest at 53.4%
  • Saudi Arabia’s operating margin remained stellar at 73.4%
  • Lebanon, Egypt and Bahrain were the most affected by Arab Spring for decreased rooms yield and IBFC
  • London saw highest occupancy across all EMEA cities analysed (83.8%)
  • Country Trends 2012 is a digest of P&L performance of 923 hotels (or 212,000 rooms) across Europe, UK, Middle East and Africa, presented accordingly to the Uniform System of Accounts. The full report is available from PKF, priced at £350 (US$554).

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Paul Colston


Paul Colston

Managing Editor, Conference News & Conference & Meetings World.

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