Global Hotel Market Sentiment Survey

By On 05th September 2012

Global Hotel Sentiment Falls As Continued Economic Issues Continue to Bite

Horwath HTL Releases Latest Version of Global Hotel Market Sentiment Survey

Singapore, August 6th 2012

The latest survey compiled by Horwath Hotel, Tourism and Leisure (HTL), the world’s largest hospitality consulting firm, shows that the improved optimism at the start of the year has once again been stymied due to the prevailing global economic uncertainty. Hotel operator sentiment has followed the same pattern of the last 3 years; with mid-year sentiment turning negative after a more optimistic outlook at the start of the year, slumping to a neutral score of 1. Europe’s return to a negative sentiment score has weighed down the global average and in Asia; China had a negative sentiment reflecting the slowing economic growth in that country.

The Survey provides the hotel industry with a quick assessment of the future market outlook. The four-question survey focuses on the outlook for occupancy, average room rates and total revenue. Hoteliers have also been asked to make comments on their expectations for the coming year in comparison to 2011, as well as identify key factors of growth/decline, assessing the outlook for key demand segments.
Performance in all three indictors in the first half of 2012 failed to meet hotel operator expectations, with hoteliers slightly more disappointed with occupancy levels than average room rate performance. The sentiment of hoteliers across all world regions, apart from the Americas, has moderated indicating that the improved optimism at the start of the year has once again been stymied due to the prevailing global economic uncertainty. Africa & the Middle East recorded the highest sentiment score for this survey, albeit at a modest score of 29. Asia’s sentiment score dropped from a relatively high 37 in February to a score of 10, while Europe’s sentiment score dropped to negative 8. Oceania, on the back of weakening growth in China and a strong local currency sending domestic tourists overseas, has seen its sentiment score drop to -12.
Damien Little, a Director of Horwath HTL in Asia and the founder of the survey said, “results from the latest edition of the Global Hotel Market Sentiment Survey indicate that once again the on-going global economic and geo-political uncertainties continue to plague performance levels across the globe and sour the outlook despite the renewed optimism we have seen at the beginning of the year for the past couple of years. With so much economic uncertainty across the globe, sentiment in the hotel industry continues to be weighed down and the assessment is that performance levels will continue to be below expectations”



JAN2010 SEP2010 FEB2011 AUG2011 FEB2012 JULY2012
Asia 48 46 52 22 37 10
Oceania 41 52 58 38 35 -12
Europe 4 15 34 16 14 -8
Americas 21 8 37 9 17 28
Africa/ Middle    East 43 7 9 -6 41 29
Global Average 27 29 42 16 24 1

About Horwath HTL

Horwath HTL (Hotels Tourism and Leisure) is one of the world’s pre-eminent consulting specialists in the hotel, tourism and leisure industries, providing unequalled experience and expertise for client projects around the world through a combination of detailed local knowledge and international understanding. Horwath HTL is currently the world’s largest consulting organisation specialised in hospitality, with 50 offices in 39 countries.

Horwath HTL is a member of Crowe Horwath International, a professional association of accounting and management consulting firms founded in New York in 1915. Crowe Horwath International is currently ranked among the top ten international professional service groups with offices in close to 586 cities in 108 countries.

If you have any questions, please contact James Chappell, Global Marketing Director at jchappell@horwathhtl.com or Damien Little, Director of Horwath HTL China on dlittle@horwathhtl.com.

To download the entire report

About The Survey

Horwath HTL has created an index to formulate an overall average sentiment score from all the survey scores. Points are assigned to each response and compounded accordingly. The index uses a scale of negative 150 to positive 150 in which negative 150 indicates a state of absolute pessimism, zero indicates unchanged expectations and plus 150 indicates a very optimistic outlook. The survey focuses on four questions, the performance of your local market, the performance of your own property, the effect of various macro-economic drivers and the effect on four key market segments.


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James Kirk

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