According to the latest data the US hotel industry brought in profits of USD 58 million last year, which is just short of the peak seen in 2007. According to the STR Analytics 2013 Host Almanac total revenues in the hotel industry increased by 13.4 per cent to total USD 162 billion including a net operating income of just short of USD 40 billion.
"While it's encouraging that the gross numbers for 2012 is near record highs, many properties are still not back to peak profit," STR Analytics director Carter Wilson said in the report. "Luxury and upper upscale properties are leading the charge back to profitability, but there are still a lot of struggles in the middle and lower chain scale segments."
The strong growth in profits comes despite only moderate revenue growth of 5.2 per cent according to the Almanac, this represents a slowdown on 2011 when revenue grew by 8.8 per cent according to STR. The slow revenue growth was made up for by tighter controls on costs, with only a 2.3 per cent increase in department expenses.
Other highlights of the 2013 HOST Almanac:
- Full-service hotels reported an average occupancy of 70.2 per cent and an average daily rate of USD 159.52 in 2012.
- On average, full-service hotels generated USD 244.76 in total revenue per occupied room night, up from USD 240.08 in 2011. Full-service, chain-affiliated hotels checked in at USD 237.26 per occupied room night while independent properties reported USD 336.16 per occupied room night.
- GOP for full-service properties was 34.1 per cent, compared with 31.5 per cent in 2011. GOP was approximately USD 21,344 per available room and USD 83.57 per room night.
- Overall in 2012, limited-service hotels recorded an occupancy of 70.7 per cent (up slightly from 70.0 per cent in 2011) and an ADR of USD 92.15 (compared with USD 89.85 in 2011).
- Limited-service hotels reported a GOP of 49.9 per cent, which was an increase from 48.8 per cent in 2011. These hotels generated USD 47.44 in GOP per occupied room night and USD 12,129 per available room.
- Franchise fees in chain-affiliated, limited-service hotels accounted for 2.6 per cent of the undistributed operating expenses, which equates to USD 2.42 per occupied room night.
For the first time, STR collected over 90 additional line items of income and expense from participating properties. Highlights from the additional lines reported include:
- Luxury hotels outperformed upper-upscale hotels in banquet revenue (per available room) on a 2:1 basis.
- Luxury hotels also had a significantly higher capture of revenue from cancellation fees than any other class.
- For properties reporting over USD 5,000 in F&B revenues, 83 per cent of these hotels registered a profit in the F&B department (including outlets, banquets, room rental, in-room dining, and mini-bars combined). Luxury and upper upscale properties were most likely to be profitable.
- For reporting full-service hotels, internet revenue per-occupied-room ranged from USD 0.48 at upscale properties to USD 1.36 for luxury hotels.
- Thursday 23 May 2013