Turnpage

Please visit our sponsors

RSS Feed
 

Current News & Press

 

Advertisement

The Bahamas Investor

News & Press Archives

 
The Bahamas Investor on facebookFollow The Bahamas Investor on TwitterSubscribe to RSS feeds from The Bahamas Investor
HOME > 
News & Press > 
Major Bahamas hotels report occupancy gains in June

According to preliminary statistics released by the Bahamas Hotel Association and The Bahamas Ministry of Tourism, the 14-major New Providence hotels recorded a 77.7 per cent occupancy rate for June 2012 compared to 68.7 per cent in June 2011. 

Source:
Date:
Updated:
TheBahamasInvestor.com
Wednesday, August 1, 2012
Wednesday, August 1, 2012

According to preliminary statistics released by the Bahamas Hotel Association (BHA) and The Bahamas Ministry of Tourism (MOT), the 14-major New Providence hotels recorded a 77.7 per cent occupancy rate for June 2012 compared to 68.7 per cent in June 2011.

Room revenue increased by 8.3 per cent on the strength of a 12.6 per cent increase in room nights sold. However, the June 2012 average daily rate (ADR) was $228.04 compared to $237.05 in June 2011.


The overall results vary by property. Five properties altogether lost room revenue (- 9.4 per cent) generated by a 1.8 per cent decrease in room nights sold and a $14.04 decrease in ADR. Five properties added to room revenue (+19.7 per cent) based on a 17.7 per cent increase in room nights sold with virtual $3.50 increase in ADR. Four properties added to room revenue (+6 per cent) coming from a 13.4 per cent increase in room nights sold and a $15.89 decrease in ADR.

“Our marketing efforts are paying off. These results, while generally encouraging, continue to point to challenges our industry faces,” says BHA president Stuart Bowe.

“While we have seen occupancy rates increase in each of the past 10 months, our ADR has also declined in seven out of the past 10 months.”

To remain competitive, adds Bowe, hotels are offering lower rates and investing heavily in marketing and value-added packages. The increased room night volume factor is under pressure from reduced average rates, increasing operating costs, and slowdown in group business.

MOT and the Nassau Paradise Island Promotion Board continue to offer travel credits as part of a highly successful promotion campaign.

Looking ahead, Bowe expresses caution: “The next four months could be very challenging for the industry. The traditional lull in activity during the soft months could deepen as we see growing uncertainty about the global economy and consumers in our major market, the United States, become preoccupied with the upcoming election when historically they travel less. We are focusing on marketing efforts and supporting events to inject business during the period.”

The second quarter showed a 75.4 per cent occupancy rate compared to 67.9 per cent last year. The ADR was $237.23 compared to $251.62 in 2011. The number of room nights sold was up 11.1 per cent, while ADR decreased by $14.39. Year to date to the end of June, 2012 showed a 73.3 per cent occupancy rate compared to 67.2 per cent last year. The ADR was $246.96 compared to $252.16 with the room nights sold up 9.6 per cent and room revenue up 7 per cent .

The June and year-to-date results also show a similar pattern to pre-recession performance, with the major hotels beating 2008 occupancy results, but lagging behind in average daily room rates.

Comparative figures for June 2008 showed a 71.9 per cent occupancy and a $235.77 ADR. Comparative figures for the second quarter 2008 showed a 71.1 per cent occupancy and a $253.66 ADR. Comparative figures to the end of June 2008 showed a 72.4 per cent occupancy and a $268.02 ADR.

Preliminary air arrivals to Nassau to the end of May were up 11 per cent.

Prime Minister Perry Christie toured the site of the Cove Eleuthera Resort at the beginning of the week. The resort is owned by New Orleans developer Sidney Torres IV and set is to open in November.

Speaking at the 16th Annual International African American Hotel Ownership & Investment Summit and Trade Show held in Miami, Florida, at the end of last week, Prime Minister Perry Christie said The Bahamas offered many opportunities for investment. Watch a ZNS news report of the event here.

The Bahamas Investor
Administrative Links
  


  © 2017 ETIENNE DUPUCH JR PUBLICATIONS LTD