Solid forecast for Supranational Hotels following ‘best year since 1974'

Mar 25, 09 | 1:57 am

We expect to remain in the black throughout downturn' - Pedersen -  ‘survival of the nastiest' is formula for hotel bosses.

Supranational Hotels has reported its second consecutive record year, and the best set of results in the 35-year existence of the 1200-member consortium.

In 2008 global reservations climbed by 6.5%, booked revenues for hotels grew by 24%, membership was up by 4%, and the annual surplus of the not-for-profit brand rose by over 40%.  Despite the depressed market Supranational managing director Niels Pedersen expects a surplus this year and believes the grouping will remain annually in the ‘black' however long the downturn persists.

Supranational offer six reasons for this measured optimism:

• the consortium's sales and marketing budget has been increased by 20% to fight the recession

• around a third of member hotels, totalling nearly 400, are in Scandinavia and the Nordic countries, regions which are still performing well.

Supranational is not heavily exposed in difficult areas such as the USA, Russia and Middle East

• nearly 75% of hotels are in the most sought-after three- and lower four-star categories

• close to three-quarters of Supranational hotel reservations come from the more resilient business travel sectors

• Supranational is investing heavily this year in more user-friendly technology to help member hotels update prices and availability more effectively

• the brand alerted its members 18 months ago to the prospect of difficult times ahead, and consequently many hotels have adjusted pro-actively to new levels of demand, and altered guest expectations

Comments Pedersen, ‘nevertheless, the message to hotel bosses is that it is a question of the survival of the nastiest in a severe downturn.  The secret is to minimise tariff cuts, reduce staff if demand dictates, focus continually on price-cutting, and beat your competition with a harder selling effort.'

‘I hope that guests will show sympathy with such hotels and remain loyal to help them continue in business throughout and beyond the recession,' he adds.

 

About Supranational Hotels

• Supranational Hotels was launched 35 years ago and represents 1150 hotels in over 70 countries.  The brand is based in London.

• Niels Pedersen can be contacted on 0207 357 0770, or via his mobile at any time, evenings included  (0776 890 8782)