1The U.S. hotel industry recorded a profit of $58 billion in 2012, just short of a peak level in 2007, according to new data from STR Analytics’ 2013 Host Almanac.
Based on almost 6,000 hotels, the industry’s total revenue increased 13.4 percent in 2012 to an estimated $162 billion with net operating income just under $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.”
Even though profits increased, revenue growth was moderate for the industry, increasing 5.2 percent in 2012, compared to 8.8 percent in 2011, STR reported.
To combat the slow revenue growth, hotel operators succeeded in controlling variable costs, with only a 2.3 percent increase in department expenses.
Other highlights of the 2013 HOST Almanac:
- Full-service hotels reported an average occupancy of 70.2 percent and an average daily rate of $159.52 in 2012.
- On average, full-service hotels generated $244.76 in total revenue per occupied room night, up from $240.08 in 2011. Full-service, chain-affiliated hotels checked in at US$237.26 per occupied room night while independent properties reported US$336.16 per occupied room night.
- GOP for full-service properties was 34.1 percent, compared with 31.5 percent in 2011. GOP was approximately $21,344 per available room and $83.57 per room night.
- Overall in 2012, limited-service hotels recorded an occupancy of 70.7 percent (up slightly from 70.0 percent in 2011) and an ADR of $92.15 (compared with $89.85 in 2011).
- Limited-service hotels reported a GOP of 49.9 percent, which was an increase from 48.8 percent in 2011. These hotels generated US$47.44 in GOP per occupied room night and $12,129 per available room.
- Franchise fees in chain-affiliated, limited-service hotels accounted for 2.6 percent of the undistributed operating expenses, which equates to $2.42 per occupied room night.
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Source: Francys Vallecillo (2013). Profits Rise for US Hotel Industry, World Property Channel?http://www.worldpropertychannel.com/north-america-vacation-news/us-hotel-industry-str-analytics-hotel-profits-luxury-hotels-6874.php published May 22, 2013. Viewed May 24, 2013,
