economic indicator study of hospitality purchasers prepared for: the international society of...
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Economic Indicator Study of Hospitality
Purchasers
Prepared for:
The International Society of Hospitality Purchasers
Prepared by:
The VNU Business Publications Research Center
April 2003
www.ishp.org
Background and Methodology
This study was conducted by the VNU Business Publications Research Center for the ISHP and sponsored by Hospitality Design magazine. The study was designed to gauge the economic conditions in the hospitality industry among ISHP Members.
Twenty six (26) members of the ISHP were interviewed in March 2003.
Property Segments
14
3129
1215
0
10
20
30
40
UpperUpscale
Upscale Midscalewith F&B
Midscalewithout F&B
Economy
62% of their hotel business included restaurants.
99% of their hotel business was in North America.
Southwest32%
Northeast22%
Central19%
Southeast16%
Northwest11%
Hotel Projects in the United States
Current Hotel Projects
69
31
70
30
0
20
40
60
80
RenovationProjects
New Construction Chain Hotels IndependentHotels
Renovation Projects
Brand Initiated38%
Owner Initiated
62%
United States86%
Europe3%
Asia4%
Canada7%
Vendor Origins
62% of respondents reported that
the number of resources (vendors) they are working with has INCREASED
31% said the number is
DECREASING
8% said the number is
UNCHANGED
Vendor Lead Times
Decreasing35%
Increasing27%
No Change38%
Increases in Lead Times – Specific Categories
63
50
42
149
0
10
20
30
40
50
60
70
Lighting Fabrics Upholstery Carpet Wallcovering
Vendor Terms of Sale
Increasing73%
Decreasing15%
Unchanged12%
Freight Costs
Increasing73%
Decreasing15%
Unchanged12%
Freight Shipped
59
41
0
20
40
60
Directly to Site Directly toWarehouse
Decreasing50%Increasing
31%
Unchanged19%
Project Schedules
On average, 28% of current projects are utilizing design firms with which the respondents had not previously worked.
On average, one project that started before the economic downturn a year and a half ago was cancelled while two are still on hold.
Current budgets compared to those at the end of 2001
28
48
24
0
10
20
30
40
50
LargerBudgets
SmallerBudgets
Don't Know
Product Replacement Cycles
54
23 23
0
20
40
60
Increasing Decreasing Unchanged
Summary
75% of the work is in mid-scale with F&B and above
Mostly located in the Southwest and Northeast
Mostly owner initiated renovations of branded hotels
Almost all the product coming from the US and Canada
We are experiencing longer product lead times
Larger product deposit requirements
Combined with shorter project schedules at a lower
budget of items that wear out faster.
www.ishp.org