Alliance Hospitality surpasses Industry Expectations with 2011 financial results

Alliance Hospitality

Alliance Hospitality, a Raleigh, North Carolina, based hospitality management company, today released operating results for 2011. Ryan Gosdin, Vice President of Sales & Marketing commented, “Throughout 2011 we remained focused on our financial goals, and that commitment propelled us ahead of our competition. Our dedication to providing superior customer service and developing the most knowledgeable and productive hospitality professionals also enabled us to generate higher cash flows, allowing us to reward our investment partners with increased financial returns.”
According to data released by Smith Travel Research, Alliance Hospitality managed hotels reported annual growth in revenue per available room of 9.7 percent in 2011. Hotels in the competitive market achieved revenue per available room growth of only 8.1 percent, and the total U.S. hotel market reported revenue per available room growth of 8.2 percent. The Alliance Hospitality portfolio of managed hotels reported 69.1 percent occupancy for 2011, representing 7.1 percent more rooms sold compared to 2010. Hotels in the competitive market reported 66.6 percent occupancy for 2011, a growth of only 3.6 percent. The total U.S. market reported occupancy growth of 4.3 percent to finish 2011 at 60.1 percent occupancy.
Although Alliance Hospitality portfolio hotels operated 7.1 percent more rooms in 2011 generating 9.7 percent higher revenues, a focus on variable expense reduction resulted in a growth of gross operating profit of 10.1 percent. Renegotiation of other fixed expenses in 2011 also realized significant savings for the portfolio. These factors contributed to 76 percent surplus of net income compared to 2010.
In October 2011, Alliance Hospitality was honored at the IHG Americas Investors & Leadership Conference in Las Vegas, when presented with the prestigious Torchbearer Award for the second year in a row for the performance of Holiday Inn & Suites Green Bay Stadium. The Torchbearer Award recognizes hotels that achieve the highest level of excellence in all aspects of operation, from quality to customer service. The Holiday Inn portfolio of Alliance Hospitality reported aggregate growth of competitive market share or RevPAR Index of 9.3 percent in 2011, resulting in year over year growth of guestroom revenue of 17.5 percent.
Remarking on the 2011 financial performance of the Alliance Hospitality portfolio of hotels, Rolf Tweeten, President and CEO said, “In 2011 we saw further improvement to the challenging operating environment that the hospitality industry has experienced with the most recent economic downturn. As the economy and demand improved, the Alliance Hospitality portfolio expanded its lead against competing hotels as part of our company-wide initiative focused on improving productivity and profitability in order to deliver greater value to our guests and stronger returns for our investors. Alliance Hospitality continues to be very successful in adding new clients, both personal and institutional; and we continue to invest in additional resources, people, and technology for our organization to consistently deliverthe exceptional financial results and superior service level our clients expect as Alliance Hospitality continues to grow.