News for the Hospitality Executive
Alliance Hospitality Announces Strong Financial Results for
Second Quarter 2011
Raleigh, NC (AllianceHospitality.com) August 9, 2011 - Alliance Hospitality, a hotel management company based in Raleigh, North Carolina, today reported operating results for the second quarter 2011. Ryan Gosdin, Vice President of Sales & Marketing commented, “For Q2 2011, we again exceeded the RevPAR growth of both our competitors and the national market by a double-digit margin as we experienced in the first quarter. At Alliance Hospitality we take pride in our consistent history of delivering superior results, and we remain committed to providing our portfolio of hotels the highest caliber of support and business intelligence in the hospitality industry to build upon our established reputation of exceptional performance.”
For the three month period ending June 2011, the Alliance Hospitality portfolio of hotels outperformed competitive set hotels by 17.1 percent and the total U.S. market by 9.9 percent in guestroom revenue growth compared to the same period in 2010 according to data released by Smith Travel Research.
For the first half of 2011, Alliance Hospitality reported guestroom revenue growth 28.2 percent higher than competitive set hotels and the national average. Year to Date ending June 2011, the Alliance Hospitality portfolio of hotels reported a 10.9 percent increase in guestroom revenue compared to the same period in 2010. Both the total U.S. market and competitive set hotels reported guestroom revenue growth of 8.5 percent year-over-year.
Occupancy rates for the Alliance Hospitality portfolio of hotels increased by 4.2 percent year-over-year with 77.7 percent of available rooms occupied for June 2011, and average daily rates grew by 5.7 percent compared to the same period in 2010. Year-over-year revenue per available room growth of 10.1 percent for the managed hotel portfolio exceeded the total U.S. market growth of 7.8 percent for June 2011.
The Alliance Hospitality portfolio of hotels reported total revenue growth for all outlets of 11 percent for the first half of 2011 when compared to the same time last year. Net Income for the portfolio for the same period reported a year-over-year increase of 81.8 percent. Transient negotiated segment represents 22.4 percent of the rooms sold for the first half of 2011, up from 16.1 percent of rooms sold for the same period last year. TravelClick reports that business travel demand for the summer (June – August, 2011) is up 7.4 percent year-over-year. Committed occupancy for the majority of Alliance Hospitality portfolio of hotels exceeds this projection, with one market reporting over 200 percent more Transient Negotiated rooms on the books for August 2011 as of the publishing of this document.
Regarding the future expansion plan for the Alliance Hospitality portfolio of hotels, Rolf Tweeten, Chairman and CEO said, “There are many Third Party Management Companies in the hospitality industry whose growth strategy involves the addition of hotel properties by any means necessary, even if it involves the direct purchase or acquisition of management contracts from other entities. These companies can rapidly increase the number of properties managed, however they are unprepared for the rapid growth and cannot adequately provide support to the properties, thus negatively impacting the performance of the assets. At Alliance Hospitality, we carefully evaluate our ability to positively impact a property and form a comprehensive takeover plan if the hotel or hotels meet our criteria for smart portfolio growth. We take pride in our reputation as a successful hotel management company, and our results allow us to be selective in our opportunities for growth. Currently, we are in the process of transitioning into our portfolio two upper-upscale hotels and a separate conference center, and four additional hotels are scheduled to join the portfolio in the next 90 days.”
About Alliance Hospitality
Alliance Hospitality is an innovative next-generation hospitality management company, headquartered in Raleigh, North Carolina. Alliance was founded in 2003 to manage lodging assets for institutional investment groups, individual owners and lenders. Alliance Hospitality provides value by developing the highest caliber hospitality professionals, and through implementing proprietary tools and unique processes to create a comprehensive hospitality management system. The Alliance portfolio of full-service, extended stay, all-suite, and select service hotels includes hotels operating under agreements with Marriott, Hilton, IHG, Carlson, Wyndham, Choice, and Starwood as well as Independent hotels.
This press release contains "forward-looking statements" that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods. These forward-looking statements include the quotations from management in this press release, as well as any statements regarding Alliance Hospitality's strategic plans and future guidance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
2011 Alliance Hospitality Mgt. LLC. All rights reserved. ©
Hospitality Names Steve Huey as Director of Sales at the Doubletree by
Hilton Dallas Market Center in Texas / July 2011
Hospitality Management Names Barry Shatoff of Hilton Garden Inn New
York General Manager of the Year and Stacey McGee of Hilton Garden Inn
Atlanta North/Alpharetta Director of Sales of the Year / March 2011
LLC Selects Alliance Hospitality Management to Operate the 156-room
Clarion Hotel and the 65-room Holiday Inn Express in Kalamazoo,
Michigan / February 2011
Hospitality Company Selects Alliance Hospitality Management to Operate
the Hilton Garden Inn New York Chelsea; Barry Shatoff Continues as
General Manager / September 2010
|D&D Lodging Selects Alliance Hospitality to Operate its Hilton Garden Inn in O’Fallon, Illinois / April 2010|
Management Company Names Barry M. Shatoff General Manager for
Doubletree Hotel JKF Airport, Jamaica, New York / February 2007