Case Study
Alliance Hospitality is successful because all of our hotels outperform their competitors. We do this by investing in training our team members, and by ensuring that all of our guests receive the high degree of service they have come to expect.
Portfolio Performance Results
As reported by STR Global for year ending December 2011
According to data released by Smith Travel Research, Alliance Hospitality managed hotels reported annual growth in revenue per available room of 9.7 percent in 2011. Hotels in the competitive market achieved revenue per available room growth of only 8.1 percent, and the total U.S. hotel market reported revenue per available room growth of 8.2 percent. The Alliance Hospitality portfolio of managed hotels reported 69.1 percent occupancy for 2011, representing 7.1 percent more rooms sold compared to 2010. Hotels in the competitive market reported 66.6 percent occupancy for 2011, a growth of only 3.6 percent. The total U.S. market reported occupancy growth of 4.3 percent to finish 2011 at 60.1 percent occupancy.
Although Alliance Hospitality portfolio hotels operated 7.1 percent more rooms in 2011 generating 9.7 percent higher revenues, a focus on variable expense reduction resulted in a growth of gross operating profit of 10.1 percent. Renegotiation of other fixed expenses in 2011 also realized significant savings for the portfolio. These factors contributed to 76 percent surplus of net income compared to 2010.
In October 2011, Alliance Hospitality was honored at the IHG Americas Investors & Leadership Conference in Las Vegas, when presented with the prestigious Torchbearer Award for the second year in a row for the performance of Holiday Inn & Suites Green Bay Stadium. The Torchbearer Award recognizes hotels that achieve the highest level of excellence in all aspects of operation, from quality to customer service. The Holiday Inn portfolio of Alliance Hospitality reported aggregate growth of competitive market share or RevPAR Index of 9.3 percent in 2011, resulting in year over year growth of guestroom revenue of 17.5 percent.