BAHA Times - March

The Journal of the British Association of Hospitality AccountantsMARCH 2011

In this issue:4 BAHA Education

Programmes - Studentresults

6 CRC - What does it meanfor me?

8 Hotel financing in 2011:Back to the roots

10 PCI DSS Survey

11 London 2012 hotel pricesset to double

12 GHN on my Mind

16 HOTSTATS UK HotelsReview Jan 2011

19 Advertise with BAHA

20 Forthcoming Events

bahaTIMESBAHA members meetingsMonday 4th April

PwC HotelsForecast2011 & 2012– How big a party forhotels in 2012?Latest industry forecast by BAHA PatronsPwC at 1 Embankment Place, LondonWC2N 6RH from 6.00pm

Thursday 19th May

PKF BreakfastSeminarAccounting and Reporting update for finance teams andconsultants working in the hospitality industry

PKF London Offices, Farringdon Road,London EC1M 3AP from 8.00am

Servicingyour needs

Hospitality & Leisure

We provide sale, acquisition, valuation, rating,

property and building advice.

bah

aTIM

ES

spon

sore

db

y:

BOOKINGESSENTIAL

To book your place atthese members meetings

please [email protected]

bahaTIMES

page 2

-

- -

-

-

bahaTIMES

-

-

-

-

-

-

PwC UK Hotels Forecast 2011 & 2012: How big a party for hotels in 2012? BAHA Members meeting - 4th April 2011

It was a very good year for many London hoteliers in 2010 as they shrugged off the recession and average room rate (ARR) growth soared by 9%. Revenue per available room (RevPAR) was up 11.4% to almost £104, passing the £100 mark for the first time since we began forecasting in 2000. This helped make London the top performing hotel market in Europe. Our lat-est hotel forecast anticipates continued strong, but decelerating, RevPAR growth of 8.3% in London in 2011, while in the provinces we expect ARR to advance by 3.4% after two years of decline, supported by a continued revival in business travel. How big a party for hotels in 2012? Q3 2012 could make many hoteliers' dreams come true with the Farnborough International Airshow, the Olympics and the Paralympic Games all in the same quarter. But outside this crucial quarter, especially in the shoulder periods, we remain con-cerned that reduced demand and above average room supply will take their toll on London trading. Hotels planning a bout of price gouging during the Olympics will only worsen the hangover. It is what happens once the Games are over that really matters, particularly for London with its significant amounts of new supply coming on in 2011 and the first half of 2012. If you would like to discuss any of the issues raised in this report come and join Robert Milburn, UK Hospitali-ty and Leisure Leader, Liz Hall, Head of Hospitality & Leisure Research and Jas Ellis Macroeconomist at PwC for a special BAHA members meeting on 4th April from 6.00pm at PwC, 1 Embankment Place, London WC2N 6RH. Booking essential please email [email protected] to reserve your place. www.pwc.co.uk/hospitalitydirections

page 3

bahaTIMES

bahaTIMES

-

-

-

-

--

-

-

-

-

-

-

-

-

bahaTIMES

-

-

-

-

- - - -

-

- - -

-

-

-

-

-

page 7bahaTIMES

bahaTIMES

-

-

- -

-

- --

-

- -

-

-

-

-

bahaTIMES

-

-

- -

- -

-

-

-

-

-- - -

bahaTIMES

PCI DSS Survey

The findings showed that 77% of the 1000 Level 4 Merchants surveyed claiming to be PCI DSS compliant – were in fact not compliant. Of the respondents surveyed claiming to be PCI DSS compliant, the results also indicated:

For more information or a copy of the survey please contact [email protected]

ORTHUS SURVEY INDICATES OVER 75% OF HOSPITALITY SECTOR BUSINESSES MISTAKENLY BELIEVE THEY ARE PCI DSS COMPLIANT.

London, United Kingdom, on March 7, 2011 – Orthus Limited released the results of a survey conducted of 1000 Level 4 Merchants* in the hospitality sector operating across the United Kingdom to verify their PCI DSS compliance status.

• 94% stated they had conducted the requirement quarterly vulnerability assessment scanning.

• 36% stated they had conducted required security penetration testing.

• 9% stated they had information security policies.

• 0% had conducted the required wireless scanning.

• 24% stated they had executed a self assessment questionnaire (SAQ).

• 48% of who stated they had executed a SAQ had submitted it to their Acquirer.

The results of the survey are disturbing and indicate that merchants are misinformed as to what constitutes compliance. A significantly high number of these Level 4 Merchants who mistakenly believed they were compliant stated that they were told by a vendor that compliance entailed nothing more than conducting vulnerability scanning. Upon completing the scanning, the Merchants understood themselves to be compliant and therein lay the problem. Merchants are getting their information primarily from vendors who have a vested interest in selling their product. “Misinformation is a significant problem in the market as vendors are selling their products as facilitating PCI DSS compliance and buyers are not doing their homework” says Orthus Data Compliance Specialist, Courtney Bryan. “If vendors are affiliated with an Acquiring Bank their products or services are even perceived as required for compliance, so after a Merchant makes the purchase they naturally assume they are compliant” states Bryan. “Something has to be done about this problem. Merchants need unbiased advice and assistance in implementing this risk management framework to prevent card data theft and fraud. There is a real knowledge void in the industry about what constitutes PCI DSS compliance and until it is addressed, vendors will continue to exploit it while the Merchants unknowingly carry all the associated business risks.

* A Level 4 Merchant is a company who processes less than 20,000 E-commerce Card Transaction annually as defined by VISA. Speak to your Acquiring Bank toconfirm your Merchant Level.

bahaTIMES

-

-

bahaTIMES

-

-

-

-- -

-

-

- --

-

-

(Ez) Revenue Management Solutions Ltd 7th Floor, Dashwood House, 69 Old Broad Street, London, EC2M 1QS

Tel : +44 (0) 20 7495 0773 Fax : +44 (0) 20 7495 7725 http://www.EasyRMS.com Email: [email protected]

“I now know more about my business than I have ever known before” “The bottom line is the system has paid for itself in weeks and there are numerous tangible benefits”

You are invited to find out how - at a Free Seminar on

Wednesday 13th April at 2-00 pm to 5-00pm

at the Strand Palace Hotel, London

Agenda

2.00pm Introduction and Objectives for the DayMike Gadbury, Vice President – Strategic Sales, EasyRMS

To discuss what is important in an RMS To show an example of what is available today To see the impact of RMS at the Strand Palace

2.10pm Discussion: What is Important to You as Revenue Managers?Niels Mekenkamp, Vice President – Consulting Services, EasyRMS

Forecasting Market Segmentation vs other groupings Room Categories and Channels RevPar/other revenues, Arrival/Departure/Guests, in-house forecasts Business Intelligence Data analytics, history, trends, other revenues, planning and scheduling

3.00pm Tea

3.15pm Review of a Revenue Management SystemNiels Mekenkamp, Vice President – Consulting Services, EasyRMS Forecasting Business Intelligence

4.00pm The Impact of an RMS at the Strand PalaceBen Chapman, IT & T Manager - Strand Palace Hotel Control of rates and forecasting Updating of rates, PMS, CRS and Channels Business Reporting for all departments, forecasts and resource planning

4.30pm The GM's Perspective

David MacRae, General Manager - Strand Palace Hotel What has the investment done for the hotel?

4.45pm Q & A5.00pm Close & Bar

To find out more or to register, please email [email protected] call Raissa on 0207 495 0773.

www.EasyRMS.com

page 14bahaTIMES

bahaTIMES

-

-

-

-

bahaTIMES

��

�� !� "�� #��$� �� "#�� $��%��&'((��$�� )��*��+��)�� ,�� $ �

� -�� $� ��%��.� �� &'('� �� /� �� $��$�� %��$��$�� .� �� 0�� &'('� �� 1� �� $�� $��$� �� +�� )��%�� ,�� $ �

2�� $�� 3 3!� �� %�� 4� ��$�� $� �� !� ��$� �� )��*��

�� &'('� �� 5 &!��"#��(5 &! � �#��.��$� $�� $�� $�� %��$��

2�� %�� .�� & �!��( 6!�� %�� 6! ��

�� !�"�#�"��$��"%&�'��(&'��%�! � %)��*��+��,��

7�� $ ��+�� +��%��%�� $�� %�� +�� 8! ��

9�� )�� $�� $�� $�� &''4� ��%�� $�� ,�� +�� 6 8� �� $�� %�� 3! � � �� &'('� �� )�� .�� 0�� %�� $�� $�� :�� )�� 9�� &'((� )�� .�� 6 4!� �� +�� 3 3! ��2��;�� $�� +��"#��%��8 (!��< &!��

��%*��7��=��

��

��

��

��

��

��

��

��

��

Jan '11 Jan '10 Var b/w YTD '11 YTD '10 Var b/w

Occ % 46 5 6( 8 %� 4 � Occ % 3& & 65 8 & 6 �ARR ((4 ' ('4 4 3 3! � ARR (&� ' ((& 6 5 &! �RevPAR 63 3 64 � � �! � RevPAR ('( ( 35 4 (& 3! �TrevPAR ((( 8 ('5 � & '! � TrevPAR (<( � (&3 � (' &! �Payroll % &5 3 &5 � %' 8 � Payroll % &< � &8 < ( ( �GOP PAR <& < <& < ' '! � GOP PAR 46 8 83 ' (4 �! �

LO

ND

ON

page 16

bahaTIMES

�� $�� +�� ' 8!� �� $��"#�� $�� $�� &'(' �� .�� %�� 4!� �� $��+��/��)��*��

2�� & 5!� �� +��' 8!��$�� ' 8� �� <' 8!��

>�$�� #�� *��$� �$��,�� <!��8 (!��

� ?2�� 0��$� �� .�� %�� $�� $� �� &'('�� +�� @�+� �� .�� 1��$��

�� %�� %�� A=� �� 0�� ;��$�� 9�� 0�� +�� $�� 3!� ��(' <!��

*��-��)!��%�! ��.(&��)��(��%��

� ?2�� $��$�� %� �� .%��.�� %�� %�� $�� &'((1��$��

��%*��7��=��

��

��

��

��

��

��

��

Jan '11 Jan '10 Var b/w YTD '11 YTD '10 Var b/w

Occ % 8� 3 8� 8 ' < � Occ % 43 5 44 � & 8 �ARR 48 & 4� 3 & (! � ARR 43 ' 43 < %' 4! �RevPAR �8 ( �< ( & 5! � RevPAR <4 3 <8 � � &! �TrevPAR 44 5 44 4 ' 8! � TrevPAR 5' ' 33 5 ( &! �Payroll % <' 8 <' ' %' 8 � Payroll % �( 5 �( 5 ' ' �GOP PAR (' ' (' � %� 4! � GOP PAR &6 4 &4 6 � 8! �

PR

OV

INC

ES

page 17

Ho

tSta

tsB

rief

ing

Dat

aU

KC

hain

Ho

tels

-P

erfo

rman

cere

port

Cur

renc

y:£

Ste

rlin

g

Jan

'11

Jan

'10

Var

b/w

YT

D'1

1Y

TD

'10

Var

b/w

Ro

lling

'11

Ro

lling

'10

Var

b/w

Occ

%58

.859

.9-1.1

Occ

%73

.771

.22.5

Occ

%74.9

72.2

2.7

AR

R86

.082

.04.9%

AR

R90

.086

.44.2%

AR

R90.6

86.6

4.6%

Rev

PA

R50

.649

.13.0%

Rev

PA

R66

.361

.57.8%

Rev

PA

R67.9

62.5

8.6%

Tre

vPA

R82

.781

.81.2%

Tre

vPA

R10

8.4

103.3

5.0%

Tre

vPA

R110.8

104.8

5.7%

Pay

roll

%35

.434

.9-0.5

Pay

roll

%28

.429

.00.6

Pay

roll

%27.9

28.6

0.6

GO

PP

AR

21.5

21.7

-1.2%

GO

PP

AR

41.9

38.1

10.0%

GO

PP

AR

43.8

39.5

10.9%

Jan

'11

Jan

'10

Var

b/w

YT

D'1

1Y

TD

'10

Var

b/w

Ro

lling

'11

Ro

lling

'10

Var

b/w

Occ

%67

.971

.5-3.6

Occ

%82

.279

.52.7

Occ

%83.2

80.6

2.6

AR

R11

6.0

106.6

8.8%

AR

R12

3.0

112.7

9.2%

AR

R124.3

113.2

9.8%

Rev

PA

R78

.876

.33.3%

Rev

PA

R10

1.1

89.6

12.8%

Rev

PA

R103.3

91.2

13.3%

Tre

vPA

R11

1.5

109.3

2.0%

Tre

vPA

R14

1.3

128.3

10.2%

Tre

vPA

R144.1

130.3

10.6%

Pay

roll

%29

.829

.3-0.5

Pay

roll

%24

.325

.41.1

Pay

roll

%24.0

25.0

1.1

GO

PP

AR

42.4

42.4

0.0%

GO

PP

AR

67.5

58.0

16.3%

GO

PP

AR

69.8

59.9

16.5%

Jan

'11

Jan

'10

Var

b/w

YT

D'1

1Y

TD

'10

Var

b/w

Ro

lling

'11

Ro

lling

'10

Var

b/w

Occ

%53

.853

.50.4

Occ

%68

.966

.32.5

Occ

%70.3

67.3

2.9

AR

R65

.263

.82.1%

AR

R68

.068

.4-0.6%

AR

R68.3

68.3

0.0%

Rev

PA

R35

.134

.12.9%

Rev

PA

R46

.845

.33.2%

Rev

PA

R48.0

46.0

4.2%

Tre

vPA

R66

.966

.60.5%

Tre

vPA

R90

.088

.91.2%

Tre

vPA

R92.1

90.2

2.2%

Pay

roll

%40

.540

.0-0.5

Pay

roll

%31

.931

.90.0

Pay

roll

%31.4

31.5

0.1

GO

PP

AR

10.0

10.3

-3.6%

GO

PP

AR

27.6

26.7

3.5%

GO

PP

AR

29.2

27.8

5.2%

The

twel

vem

ont

hsto

Janu

ary

2011

TOTAL UK LONDON PROVINCES

The

mo

nth

ofJ

anua

ry20

11T

heC

alen

dar

year

toJa

nuar

y20

11

page 18bahaTIMES

EditorsNotes:

TheUKCha

inHotelssampleisco

mposed

of51

9ho

telswith

anaverag

eho

telsizeof

184bed

room

s.

Theho

telsprofiled

inthisreportaredrawnfrom

theHotStats

datab

asean

dreflect

theportfoliosan

ddistributionof

theho

tel

chains

that

wesurvey

andwhich

operateprim

arily

inthethreean

dfour-starsectors.

Pleaseno

te:T

hedatasamplesarereview

edan

drebased

each

year

toreflect

thech

ange

sintheHotStats

survey

base.

Asaresult,

perform

ance

ratio

spub

-

lishe

dlast

year

may

differ

from

thoseco

ntaine

dwith

inthisreport.

TRIH

ospita

lityCon

sulting

provides

awiderang

eof

services

toclientsintheho

telsector.Itha

soffices

inLo

ndon

,Dub

aian

dMad

rid.

Con

tact:M

arkDickens,M

anag

ingDirector

HotStats

0207

89222

07mark.dickens@ho

tstats.com

bahaTIMES

FORTHCOMING EVENTS AT A GLANCE

The British Association of Hospitality AccountantsBAHA Administration Office, Suite 6, Merley House Business Centre,

Merley House Lane, Wimborne, Dorset BH21 3AA.

Telephone +44 (0)1202 889430 Fax +44 (0)1202 887967

Email: [email protected] www.baha.co.uk

bahaBRITISH ASSOCIATION of HOSPITALITY ACCOUNTANTS

April 4 BAHA Members Meeting. Latest Forecast presentation by PwC, Londonfrom 6.00pm

April 13 Revenue Management workshop. Strand Palace Hotel from 2.30-5.00pmwith EasyRMS

April 18 BAHA Members Meeting. Details to be confirmed

May 19 PKF Breakfast Seminar. Accounting and Reporting Update for Finance Teamsand Consultants working in the hospitality industry PKF London Offices, FarringdonPlace, 20 Farringdon Road, London EC1M 3AP from 8.00am

June 6 BAHA Taxation forum. London from 6.00pm

June 20 HRMC Revenue Management Debate. London from 6.00pm

July 14 BAHA Quiz Night.

The BAHA Meetings Programme is sponsored by Fourth Hospitality a leadingsupplier of on-demand business intelligence solutions for the Hospitality industry

Gold sponsors include:

Agilysys

Best Western Hotels

Clarity Hospitality

Fourth Hospitality

Global Blue

KPMG

Aston Scott

BDO

CMS Hospitality

CTB Accounts

Cowgill Holloway

EasyRMS

Eproductive

FM Recruitment

IDeaS - A SAS Company

Kerry Robert Associates

Keystep

Micros-Fidelio

Orthus

PAR Springer-Miller

PKF

PricewaterhouseCoopers

Rate Tiger

Shere

StockCheck

STR Global

Symon - Digital Signage

Rieo Communications

Rubicon

Softbrands, an Infor Affiliate

The Ritz Hotel, London

TopSource

Touchstone NAV

TRI Hospitality Consulting

Venners

Xn Hotel Systems Ltd

Zen Consulting

Patrons are valued members of the British Association of Hospitality Accountants, providing the Association and itsmembers with a wide range of services and technical advice.

Visit www.baha-uk.org/sponsorsandpatrons.asp to view links to all our patrons.

PATRONS & PARTNERS

BAHA Times - March

Documents

Transcript of BAHA Times - March