HDG Hotels Outperformed Competitors by 44% in RevPAR for 2012 (As of Oct 2012)
HDG Hotels have once again outperformed their competitive set by an average of 44% in RevPAR for the year of 2012 as of Oct, according to the data collected by Smith Travel Research. This is consistent with the numbers for year 2011 (36% margin, 2010 (39.8% margin) and year 2009 (18.6% margin).
RevPAR or Revenue Per Available Room is a performance metric used by hotels worldwide and is calculated by dividing the hotel’s total revenue by the total number of available rooms for a given set of time. RevPAR Index on the other hand is a measurement of a hotel’s fair market share relative to it’s competitive or market segment. It is derived by dividing the hotel’s RevPAR by the segment’s RevPAR multiplied by 100. If a hotel is capturing its fair market share, the index will be 100; if capturing less than its fair market share, a hotel’s index will be less than 100; and if capturing more than its fair market share, a hotel’s index will be greater than 100 which is the case for all properties in the HDG portfolio.
HDG Hotels Lead Market and Competitive Set Hotels in RevPAR Growth
In the most recent data released by Smith Travel Research, HDG Hotels leads the Market and Competitive Set segment in RevPAR growth. These strong growth in numbers are reflective of HDG’s philosophy of seamlessly integrating the art of brilliance in the basics and using cutting-edge technologies.
For the whole year of 2012 compared to 2011, HDG Hotels recorded an average increase of 11.90% in RevPAR compared to our direct competitors’ 7.06%. This increase year-over-year can be attributed to the increase primarily in HDG Hotels’ occupancy percentage which grew by 11.01% while our competitors only grew by 7.53%. HDG Hotels have also seen an increase in ADR (Average Daily Rate) at 1.49% for 2012 while our competitors saw decrease of -0.14%