Although 2001 has since proven to be as difficult a year as any in the past three, our 2000 data nevertheless represents what Asia Pacific hotels are able to achieve without the encumbrance of these external forces, and thus a useful benchmark for hotel performance.
Hotels in Singapore and Hong Kong, in particular, demonstrated the profit potential of a well-operated property, given reasonable market demand. Median gross operating profits were 37.9 and 44.2 percent, respectively, in markets with relatively high labor costs. On the other hand, in the comparatively low cost markets of Indonesia, Thailand and the Philippines, hoteliers were able to maintain reasonably good GOPs even with stagnant to falling market demand. The surprisingly respectable performance of Indonesian hotels in general was due mainly to the good performance of resorts in general, and resorts in Bali in particular, which lifted the overall results for the Indonesian market. Of the Southeast Asian markets represented in the survey, only Malaysia combined its relatively high costs with stagnant market demand to underperform its neighbors.
In comparison, the performance of hotels in Japan and Australia reveal the difficulties of operating hotels in mature, high-cost markets, with median GOPs well below the other Asia Pacific markets. Good operating profit, however, was returned by small resorts throughout the region, demonstrating the viability of good quality resort hotels below 200 rooms.
Contact:
Gary Carr
Director of Communications
PKF Consulting
425 California St. – Suite 1650
San Francisco, CA 94104
(415) 421-5378
gcarr@pkfc.com
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