Hotels report best results in years

Record tourist numbers in 2013 saw Maltese hotels record the highest occupancy levels registered in the past five years, according to a survey carried out on behalf of the Malta Hotels and Restaurants Association.
Rescord Tourist Numbers Malta

The survey, which is carried out every quarter by Deloitte, distinguishes between 3-star, 4-star and 5-star hotels, and shows that all three categories have registered an improvement in both occupancy and in profitability.

Last year, 5-star hotels registered an occupancy rate of 69.6%, up from 68.2% in the previous year. The average acquired rate per room (AARR) increased by 6% to €111.8, causing gross operating profit per available room to increase by 12%.

4-star hotels, which enjoy the highest occupancy rate in Malta, registered somewhat more modest growth in 2013. Their occupancy rate increased from 73.9 to 75%, while their AARR increased by 1.7% to reach €50.6. Their profits per room, however, increased by 6% as their cost base remained relatively flat.

3-star hotels registered the most significant increase in occupancy last year: occupancy increased from 49.3% in 2012 to 54% in 2013. Their AARR increased from by 6.1% to €38.2: brought together, the two results saw their gross operating profit per available room increase by 20%.

Staff numbers – when compared to available rooms – increased by 9.2% in 5-star hotels and by 4% in 4-star hotels last year. However, they decreased by 0.6% in 3-star hotels.

As he presented the results, Deloitte partner Raphael Aloisio stressed that the results were very positive, explaining that last year’s results were the best registered by the industry since it registered a considerable dip in performance in 2009, in the wake of a global financial and economic crisis.