Magnuson Hotels reservation revenue climbs 24% against US occupancy crash.
July 28, 2009
SPOKANE, WA– Magnuson Hotels, the world’s largest independent hotel group, announced today a 24% increase in same-hotel reservation revenue year to date 2009 vs. 2008, while total US hotel occupancy has fallen more than 10% for the same period. With nearly 1000 hotels across 50 US states and Canada, Magnuson reports strongest performance in the Interstate, Airport and Small Metro/Town geographic segments.
While key industry monitor Smith Travel Research has lowered its US forecast for the second half of 2009, Magnuson Hotels expects to finish 2009 even stronger, forecasting a 30% increase in revenue for remainder of 2009 versus same period 2008. Magnuson additionally reports a total 2009 over 2007 revenue growth of 72%.
“It’s the biggest occupancy crash in history,” stated Thomas R. Magnuson, company CEO/Principal. “Decreased demand combined with rising new supply means market conditions will continue to worsen in 2010 as foreclosures rise to an unprecedented new level. Franchised hotel owners will have no choice but to cut non-revenue producing costs to survive. Unbranded independents will need the lowest cost marketing and distribution to increase revenue.”
Driving the above-market performance are Magnuson Hotels’ recent expansion of its worldwide reservation distribution with the registration of its new MS GDS (global distribution system) chain code, which identifies Magnuson Hotels as a globally-recognized hotel chain to over 650,000 worldwide travel agents through Amadeus, Sabre, Worldspan, Apollo and Galileo.
Despite economic crisis conditions, significant revenue growth has been delivered to nearly 1000 Magnuson Hotel affiliates across the US and Canada, sourced primarily from increased corporate, government, military, AAA and AARP business segments. The addition of new sources of business has further strengthened Magnuson Hotels’ market position with less dependence on economy-sensitive leisure travel.
Magnuson Hotels will be presenting key performance figures during its High Performance Strategies for Today’s Economy Conference on August 6, 2009 9:00 a.m. to Noon at the Renaissance Nashville Hotel, Nashville, TN. For free registration go to www.magnusonhotels.com/conference. You must be registered to attend. Limited seating is available.
About Magnuson Hotels, the fastest growing hotel chain in history.
In only seven years, Magnuson Hotels headquartered in Spokane, WA has become the world’s largest independent hotel group, representing nearly 1500 hotels and a combined affiliate base with assets in excess of $5.5 Billion. One of the top 10 global hotel chains, Magnuson Hotels was the #1 Hotel Company of Inc. Magazine’s 2009 annual ranking of the 5,000 fastest growing privately owned U.S. companies. With a four year reservation sales growth of 595%, Magnuson Hotels is listed in the top 100 U.S. business services companies.