Formula for REVPAR has grown

Barcelona - The hotel (financial) management company Xotels has shown a 15.3% REVPAR increase during the third quarter of 2011. This growth puts Xotels at a YTD growth of 15.8%. The third quarter of 2011 continues to show growth for independent hotels across Europe.

Co-founder and COO of Xotels Remko West notes: "The prospects for October are also very promising. Many of our hotels have a significantly higher ADR on the books than last year and the results exceed the targets. The outlook for the fall and end of the year in Europe is very encouraging."

Patrick Landman, co-founder and CEO of Xotels adds: "We did not only focus on the REVPAR of our hotels, but have also been reducing the share of costly distribution channels in properties that are running 95% occupancy or more, working only with a maximum of 15% commission. As a result GOPPAR and profitability is rising notably. Moreover, we are working strategically with the hotels to increase direct sales by using hotel rate strategy, hotel marketing tools and social media strategy."

Xotels have been able to drive high occupancy rates with moderate ARR increases of around 5% during the summer. In September, European cities like Amsterdam, Brussels and Maastricht have shown a strong demand from the corporate and MICE markets allowing us to scale prices upwards during the city wide trade fairs and conferences. At one property Xotels even achieved a 40% year over year REVPAR growth in September.

Jean Seriat Gauthier, of the Revenue Team notes: "Hotels located in resort destinations like Mallorca, Lazarote and San Sebastian have also shown strong results in Q3. Their REVPAR was increased by 90% to 19% due to better control of the market mix, limiting overproduction and displacement by low yielding distribution channels during high demand periods." Following is a summary of our 2011 hotel REVPAR results: Name hotel (location, Q3, 2011 YTD). Pantone Hotel (Brussels-Belgium, +28%, +24%), Theater Hotel (Brussels-Belgium, +59%, +47%), Qbic Hotel (Amsterdam-The Netherlands, +26%, +23%), Townhouse Hotel (Maastricht-The Netherlands, +9%, +24%), Hip Hotel St Martenslane (Maastricht-The Netherlands, +6%, +16%), Hotel Es Moli (Deia, Mallorca-Spain, +18%, +16%), Hotel de Londres (San Sabastian-Spain, +9%, +10%), Grand Hotel Tequise Playa (Lazarote-Spain, +19%, +16%).

Xotels is exploring the possibility to add some more creative lodging concepts to the portfolio in the Netherlands. Investors and property owners seem to like the model of Xotels. "We are seeing an increase in the demand for revenue management outsourcing, " Patrick Landman concludes.

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