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SPECIAL HOSPITALITY INDUSTRY ANALYSIS
The hotels, restaurant, and leisure industry consists of hotels, restaurants, casinos, cruise lines, resorts, and theme parks. Major hotel operators are Intercontinental Hotels Group (IHG), Marriott International Inc. (MAR), Las Vegas Sands (LVS), MGM Mirage (MGM), McDonald’s (MCD), and Yum! Brands (YUM).
The foodservice industry employs more than 12 million people, it is the second largest employer in the United States; the the U.S. government is number one.
Restaurant sales have grown 5% annually according to National Restaurant Association. However, the companies generally earn slim profits margins in a very competitive business environment.
Many hotels are heavily leveraged and lingering low occupancy rates could pressure their existence. Occupancy, average daily room rate, and revenue per available room are important measurements in any analysis.
Casinos generate roughly $68 billion annual revenues; 50% is from gaming, 20% from hotel rooms, 15% from food and beverages, and 15% from retail stores, and entertainment.. In the recent past, MGM Mirage purchased Mandalay Resort Group for $8 billion and Harrah’s bought Caesars for $9 billion, and casino construction has been significant. Any further expansion may threaten profit margins. Most of the industry’s growth has come from Native American casinos, presently generating $16 billion in annual revenues.
According to PKF Hospitality Research's latest U.S. hotel industry forecast for 2013: The more expensive hotels will have a better chance of raising rates than those less expensive. Hotels like Marriott, Hilton and Hyatt to Ritz-Carlton, Four Seasons and St. Regis properties are expected to fill a greater share of rooms than lower priced hotels. Whether a hotel has recently renovated will help in raising rates.
The U.S. Hotel average daily rate (ADR) should increase by 4.7% in 2012 and by another 5.3% in 2013. These increases will exceed the long-term average growth rate of 2.8%.
Cinnabon Inc. has opened its 1,000th bakery (Vancouver Mall in Vancouver, Wash.). The Cinnabon brand is in 48 states and 50 countries.
Domino’s Pizza Inc. plans to open about 200 stores annually in Asia.
McDonald's had a 2.4% increase in global same-store sales in November, and a 2.5% increase in the U.S., largely due to its Dollar Menu and growth in its breakfast and beverage sales.
Outback (Bloomin' Brands) opened its first company-owned restaurant in Shanghai. Outback Steakhouse opened its first international restaurant in 1996and now has more than 200 restaurants in 20 countries and territories.
Pizza Hut Delivery plans to open 100 new United Kingdom takeout units by the end of 2014. The new stores should employ about 2,000 people.
Starbucks, for the fourth quarter ended Sept. 30, same-store sales, rose 10% in the China and Asia-Pacific region. Starbucks stores in China now average $886,000 in annual sales, up from $507,000 in 2008. The company expects China to become its largest market outside the U.S. in 2014.
Yum, owner of KFC and Pizza Hut is expanding to expand in smaller cities throughout China. Yum, which also owns Taco Bell, is already the biggest Western fast-food chain in China, with about 5,400 locations, compared with 1,600 for McDonald's.
HAPPY HOLIDAYS and To my readers who celebrate or honor Christmas:
Argentine: Feliz Navidad y Feliz Año Nuevo Bohemian: Vesele Vanoce Brazilian: Boas Festas e Feliz Ano Novo Bulgarian: Vesela Koleda I chestita nova godina! Chinese (Cantonese): Sing Dan Fae Lok. Gung Hai Fat Choi Chinese (Mandarin): Shen Dan Kuai Le Xin Nian Yu Kuai Croatian: Sretan Bozic Czech: Stastne a vesele vanoce a stastny novy rok! Danish: Glaedelig Jul og godt nyter Dutch: Vrolijk Kerstfeest en een Gelukkig Nieuw Jaar English: Merry Christmas Finnish: Hyvaa joulua French: Joyeux Noel Gaelic: Nollaig chridheil agus Bliadhna mhath ùr! German: Fröhliche Weihnachten Greek: Kala Christouyenna! Haiti: (Creole) Jwaye Nowel or to Jesus Edo Bri'cho o Rish D'Shato Brichto Hawaiian: Mele Kalikimaka Hebrew: Mo'adim Lesimkha. Chena tova Hindi: Shub Naya Baras (good New Year not Merry Christmas) Hungarian: Kellemes Karacsonyi unnepeket Icelandic: Gledileg Jol Indonesian: Selamat Hari Natal Irish: Nollaig Shona Dhuit, or Nodlaig mhaith chugnat Italian: Buone Feste Natalizie Japanese: Shinnen omedeto. Kurisumasu Omedeto Korean: Sung Tan Chuk Ha Latin: Natale hilare et Annum Faustum! Latvian: Prieci'gus Ziemsve'tkus un Laimi'gu Jauno Gadu! Lettish: Priecigus Ziemassvetkus Lithuanian: Linksmu Kaledu Norwegian: God Jul, or Gledelig Jul Peru: Feliz Navidad y un Venturoso Año Nuevo Philippines: Maligayan Pasko! Polish: Wesolych Swiat Bozego Narodzenia or Boze Narodzenie Portuguese:Feliz Natal Rumanian: Sarbatori vesele or Craciun fericit Russian: Pozdrevlyayu s prazdnikom Rozhdestva is Novim Godom Serbian: Hristos se rodi Slovakian: Sretan Bozic or Vesele vianoce Samoan: La Maunia Le Kilisimasi Ma Le Tausaga Fou Scots Gaelic: Nollaig chridheil huibh Serbian: Hristos se rodi. Slovak: Vesele Vianoce. A stastlivy Novy Rok Spanish: Feliz Navidad Swedish: God Jul and (Och) Ett Gott Nytt År Thai: Sawadee Pee Mai or souksan wan Christmas Turkish: Noeliniz Ve Yeni Yiliniz Kutlu Olsun Ukrainian: srozhdestvom Kristovym or Z RIZDVOM HRYSOVYM Vietnamese: Chuc Mung Giang Sinh Welsh: Nadolig Llawen
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