Alliance Hospitality Beats Industry Benchmarks with Impressive Q3 Financial Results

Alliance Hospitality

The Raleigh, North Carolina, based Alliance Hospitality, a leading hospitality industry management company, The portfolio of Alliance Hospitality managed hotels significantly exceeded both the U.S. market average and local competitors in annual revenue growth for the period..
Alliance Hospitality, a hospitality management company based in Raleigh, North Carolina, today announced very strong fiscal results for last quarter. According to data released by Smith Travel Research, Alliance Hospitality revenue per available room increased 6.4-percent compared to last year, surpassing both the U.S. hotel market average growth of 5.2-percent and the competitive sets growth of 0.9-percent for the quarter. The revenue growth of Alliance Hospitality hotels was fueled by a 1.4-percent rise in occupancy coupled with a 5.0-percent lift in average daily rates.
The increase in revenue occurred across multiple vertical and geographic markets, however a significant portion of the increase is attributed to an 18.7% increase in revenue from transient negotiated accounts and a 17.2% increase in revenue from group business at the hotels. These two segments combined represent more than one-third of the revenue generated for the quarter. Ryan Gosdin, Vice President of Sales & Marketing commented, “We are very pleased to report our exceptionally strong operating results generated through solid rate growth and aggressive targeting of business travelers and group business at our hotels. The power of our industry-leading sales platform at Alliance Hospitality is evident by our increases in market share and through our persistent strength in group booking pace.”
View Q3 Financial Results
Solid top-line revenue performance allowed the organization to increase gross operating profit for the portfolio by 6.9-percent for the quarter. This improvement in operating margins allowed net income to rise by 18.6-percent compared to the same period last year. Alliance Hospitality implemented a state-of-the-art hotel accounting platform with cloud-based technology earlier this year that provides instant access to current financial data to the hotel management team and the corporate support staff, further improving the operational efficiency and increasing margins at the hotels.
Remarking on the third-quarter fiscal performance of the Alliance Hospitality portfolio of hotels, Rolf Tweeten, Chairman and CEO said, “As the economy continues along its prolonged recovery path and demand from business and leisure travelers grows, we recognize the importance of strategic revenue management combined with a knowledgeable and competent sales and operations teams. I am confident that my team will continue to push our hotels to exceed industry benchmarks and surpass the expectations of our owners and investors.”
For more information on Alliance Hospitality’s services, please call (919) 791-1801 or visit www.alliancehospitality.com