Table de France
The partnership of Christofle & Guy Degrenne (Flatware | Hollowware | Porcelain | Glassware | Stoneware | Slate | Corp. Gift | Accessories) Chilewich (Vinyl Placemats | Tablecovers | Runners | Menu Covers | Flooring | Custom Pieces) Garnier Thiebaut | Hilden America (Table Cloths | Napkins | Bed Linen | Custom Pieces | Accessories) Revol (Porcelain | Cookware | Innovative Pieces | Accessories} Zwilling J.A. Henckels | Staub | Demeyere (Chef's Knives | Cast Iron Cookware & Minis | Stainless Steel Cookware | Accessories) Peugeot | Swissmar | Galic {Salt & Pepper Mills | Shakers | Kitchen Accessories | Tabletop Accessories} Please call 1 (267) 987 8855 or email JamesFaganJr@gmail.com for booth #s or more information regarding the NRA show in Chicago. May 21st - May 24th.
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May 17, 2011, Atlanta, GA–After two years of declining profits, the average U.S. hotel enjoyed a 9.8 percent bottom line increase in 2010, according to a recently released report, Trends® in the Hotel Industry, issued by PKF Hospitality Research (PKF-HR). The gain, however, does not make up for the 37.9 percent cumulative loss experienced by U.S. hotels during 2008 and 2009.
While 70 percent of the properties in the Trends® sample enjoyed an increase in total revenue in 2010, only 60 percent were able to convert that into more money in the bank, indicating that the turnaround in industry performance has not occurred evenly across all sectors of the U.S. lodging industry “In the March 2011 edition of our monthly Hospitality Market Update newsletter, we noted that the driving force behind revenue growth in 2011 starts with the price tier segment you are positioned within,” said R. Mark Woodworth, president of PKF-HR. “The higher the price tier, the greater the projected growth in ADR and, consequently, RevPAR. After analyzing the results of the 2011 Trends® in the Hotel Industry survey, the relationship between price position and profits appears to be as strong as the correlation between room rates and the ability to grow revenue.” According to the 2011 edition of Trends®, hotels in the highest room rate categories achieved the greatest increases in net operating income in 2010. Conversely, properties in the lowest rate categories either achieved minor increases in profit or suffered their third consecutive year of bottom line declines. “The full-service properties in the Trends® sample typify this relationship between prices and profits,” Woodworth said. “Within the full-service category, those hotels in the lowest ADR category (less than $100) saw just a slight 0.3 percent increase in profits in 2010. At the other end of the spectrum, upper-upscale and luxury hotels with an ADR greater than $200 enjoyed a strong 33.0 percent gain in profit.” Each year PKF-HR collects financial statements from thousands of hotel owners and operators across the U.S. for its Trends® in the Hotel Industry report. The 2011 Trends® report marks the 75th anniversary of this publication and provides industry benchmarks for 2010 unit-level revenues, expenses, and profits. For the purpose of this report, profits are defined as net operating income (NOI) before deductions for capital reserves, rent, interest, income taxes, depreciation, and amortization. Revenue Up For Most Everyone Nearly 80 percent of hotels in the Trends® sample enjoyed an increase in rooms occupied in 2010, but only 67 percent were able to leverage that into increases in total revenue. On average, the hotels in the Trends® sample achieved a 6.2 percent increase in occupancy, but were unable to raise their room rates. In the aggregate, ADR for the overall sample declined 0.9 percent. Based on the preceding changes in occupancy and ADR, the Trends® sample averaged a 5.3 percent rise in rooms revenue in 2010. Among the other sources of revenue, food and beverage sales increased 5.6 percent and other operated department revenue rose 2.2 percent, but rentals and other income declined 10.0 percent. The net result was a 4.8 percent increase in total hotel revenue for the overall Trends® sample. Expense Growth Suppressed Given the fact that the gains in revenue were driven by growth in the number of rooms occupied, it is not surprising that the costs and expenses to operate a hotel also grew. Total operating expenses increased 3.4 percent in 2010. “While this growth in expenses was more than double the rise in the consumer price index for the year, it is slightly less than expected given the historical expenditure patterns we observed during the initial stages of past lodging industry recoveries,” said John B. (Jack) Corgel Ph.D., the Robert C. Baker Professor of Real Estate at the Cornell University School of Hotel Administration and senior advisor to PKF-HR. “Part of the reason for the more modest growth in operating expenses is the continued high rate of unemployment and the resulting lack of pressure on wage rates. Labor costs for U.S. hotels increased a modest 2.7 percent from 2009 to 2010.” In contrast, the amount spent to purchase all other goods and services needed to operate a hotel (excluding management fees, property taxes, and insurance) climbed 5.3 percent in 2010. The largest increases among these expenditures occurred in the rooms (6.2 percent) and food and beverage (9.3 percent) departments. These higher operated department costs are to be expected, given that revenue growth was driven by increased business volume as opposed to a rise in prices. Facing dramatic declines in revenue in 2009, hotel managers were effective in cutting all department expenses except fixed charges (property taxes and insurance). “As we predicted in the 2010 Trends® report, the profit declines in 2009 led to decreases in property values in 2010. Accordingly, fixed charges fell 3.8 percent in 2010, the only expense category to be reduced during the year,” Woodworth said. Profit Growth Varied On average, unit-level NOI for the Trends® sample rose 9.8 percent in 2010, with the ability to grow profits varying by property type. The greatest gains in NOI were achieved by full-service (+14.4%), resort (+10.4%), and convention hotels (+8.7%). Limited-service (+0.5%) and suite hotels with food and beverage (+1.8%) lagged in their ability to generate more dollars on the bottom line. This diversity of performance follows the previously described observation relating profit growth to price positioning. 2011 Outlook Based on the March 2011 edition of Hotel Horizons®, PKF-HR is forecasting that the average hotel in the U.S. will be able to increase their total revenue by 6.8 percent for the entire year. The revenue growth will come from a relatively equal contribution of increases in occupancy and ADR. Accordingly, hotel operators will need to continue their diligent efforts to control costs. “Assisting management in curbing costs in 2011 will be the continued lack of upward pressure on wages resulting from lingering high levels of unemployment,” said Corgel. “However, commodity price escalation has already contributed to a rise in utility costs, delivery surcharges, and the cost of goods sold. Cost controls might be what dictates hotel profitability in 2011." Please let us know if you will be attending the National Restaurant Assoc. Show this year in Chicago.
Please contact 1.267.987.8855 for more information. The Greater Philadelphia Tourism Marketing Corporation (GPTMC) has a food-centric campaign as part of its 2011 activities to promote the City of Brotherly Love. The city's tourism organization has partnered with foodie social platform Foodspotting to promote local restaurants, wineries, hotels and markets to Foodspotting users.
Philadelphia will have a branded presence, contests and guides on the platform, which allows users to recommend favorite dishes and drinks by taking photos of the items and sharing them with the community via the Foodspotting site or smartphone apps. The guides are location-based lists of recommended dishes and drinks that are mapped and accessible via mobile. GPTMC will have 12 official guides on foodspotting.com/visitphilly, and once Foodspotting members "spot" an item from the guides they get a "Visit Philly" badge that goes to their Foodspotting profile. The branded guides cover everything from "Famous Philly Flavors" to breweries, vegetarian cuisine and Latin eateries in the region. The city's tourism organization will roll out eight more guides on Foodspotting during the summer. GPTMC will award one grand prize and 10 first prizes to Foodspotters who participate in Visit Philly's "With Love Foodspotting Contest" this month. One person who follows "Visit Philly" on Foodspotting and completes Visit Philly's "Famous Philly Flavors" guide between May 11 and May 25 will win an overnight stay at a luxury Philadelphia hotel, a City Food Tours' Flavors of Philly excursion for two and a $100 Garces Restaurant Group gift card. Caroline Bean, a GPTMC spokesperson and social media director, said the organization followed what nearby Bucks County had been doing in the social space. "They actually started with Foodspotting last year and were talking about it to us," she says. Bean says the city's presence on the food platform carries the same branding as the larger "Love" campaign that launched last year, and which the organization has run in places like New York's Penn Station, featuring pithy text with "XOXOXO" script in a red hue. Bean says GPTMC will promote the food program through media outreach, bloggers and "Our own social media outlets, such as our own blog and our four Twitter and Facebook pages," she says. "Foodspotting is appropriate for us, since we know visitors and residents are savvy with phones, they know what they are doing on social media." "Visit Philly is one of our destination partners that really gets Foodspotting. We have a dedicated community of users in the Philly area," said Fiona Tang, head of outreach at Foodspotting, in a release. Greater Philadelphia Tourism Marketing Corporation (GPTMC), which is now 15 years old, reports in new visitor data that the Philadelphia region saw 37.4 million domestic visitors last year -- of whom 33.1 million were tourists. The numbers reflect 10 million more leisure visitors than in 1997, when GPTMC first began marketing. The organization says that every $1 spent on advertising for the "With Love" generates $100 in direct visitor spending. In addition to the Foodspotting effort GPTMC is ramping up advertising to bring tourists to the city this summer, with ads and links to VisitPhilly.com on mobile Web sites, including philly.com and philadelphiacitysearch.com, and on mobile applications, including The Weather Channel, Go2, Where, ActiveDiner, iMaps and iLocate. The organization is also launching a new TV spot the week of June 6 that will run in the Philadelphia, northern New Jersey and the Harrisburg-Lancaster-Lebanon-York (HLLY) DMAs both online and on TV stations, including Nickelodeon, HGTV, TLC, Comedy Central and TBS. Also, GPTMC and Victory Brewing Company are re-releasing the With Love-inspired Summer Love Ale this summer in 29 states. The effort is part of a "Summer With Love" campaign running May 16 through Sept. 4. by Karl Greenberg |
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