Project Scope

Horwath HTL was engaged to conduct a financial benchmarking study for hotels under management in specific class sectors across Australia. The client sought an in-depth assessment of operating financial pro-formas, with a focus on comparing performance metrics to those of comparable national operators. The objective was to provide actionable insights into the competitiveness and efficiency of the client’s portfolio within the broader market context.

The study began with a detailed review of the client’s operating pro-formas, including revenue streams, departmental profitability, and expense structures. Key performance indicators such as gross operating profit per available room (GOPPAR), average daily rate (ADR), revenue per available room (RevPAR), and occupancy levels were analysed to gauge operational efficiency and market positioning.

Our benchmarking process involved comparing these metrics against a robust dataset of similar properties within the client’s target sectors, segmented by class, size, and geographic location. This analysis provided a clear picture of how the client’s hotels performed relative to their peers, highlighting areas of strength as well as opportunities for improvement.

In addition to financial benchmarking, we evaluated market trends influencing the specific class sectors, including shifts in traveller behaviour, competitive dynamics, and regional economic conditions. This contextual analysis ensured the findings were grounded in current and relevant market realities.

The final deliverable included a comprehensive report detailing the financial benchmarking results, along with strategic recommendations to optimise operational efficiency and enhance competitive positioning. These insights enabled the client to identify and address performance gaps, improve profitability, and align their portfolio with industry best practices. This engagement demonstrated Horwath HTL’s expertise in financial benchmarking and its ability to deliver value-driven insights tailored to the hospitality sector.

Project Location

Australia