{"id":1004296475,"date":"2019-02-05T03:18:30","date_gmt":"2019-02-05T11:18:30","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004296475"},"modified":"2019-02-05T07:21:51","modified_gmt":"2019-02-05T15:21:51","slug":"us-hospitality-sector-continues-growth-trend","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/us-hospitality-sector-continues-growth-trend\/","title":{"rendered":"US Hospitality Sector Continues Growth Trend"},"content":{"rendered":"

\"\"<\/a>A new HotStats report revealed a year-to-year increase in GOPPAR\u2014gross operating profit per available room\u2014growth for hotels in the United States for the third consecutive year. Furthermore, 2018\u2019s growth was higher than the previous year.<\/p>\n

\u201cOne of the bigger takeaways is that while there are macroeconomic concerns and an overall expectation that hotel industry metrics are slowing down, hotel owners made money in 2018 with profit per room growing 3.4 percent,\u201d<\/em> David Eisen, HotStats\u2019 director of hotel intelligence and customer solutions, told Commercial Property Executive<\/em>. \u201cHoteliers are driving revenue beyond rooms, too, optimizing their food and beverage operations, a department that is now a revenue generator when, in years past, you were happy to break even.\u201d<\/em><\/p>\n

The report showed that profit growth happened because hoteliers did a better flow-through job\u2014making sure to capture as much of every dollar generated at the top line. <\/p>\n

\u201cThat is also no easy feat with expenses creeping up every year as they have,\u201d<\/em> Eisen said. \u201cIn that regard, hoteliers have also been successful in flexing cost. On a per-available-room basis, labor costs, for one, are up, but hoteliers have been adroit in not letting them balloon as a percentage of total revenue, allowing them to continue growing profit margin year-over-year.\u201d<\/em><\/p>\n

While there are many variables to rate success, on a profit scale, San Diego showed one of the largest upswings. In the markets HotStats tracks, the city had the highest GOPPAR on a dollar basis and was up 5.1 percent year-over-year.<\/p>\n

\u201cIt\u2019s also only second to New York in regard to its year-over-year increase in TRevPAR, which is a strong measure of a hotel\u2019s revenue because it accounts for more than just rooms, but all other revenue centers,\u201d <\/em>Eisen said. \u201cSan Diego is increasing its amount of overseas travelers and has also become a favored conference destination.\u201d <\/em><\/p>\n

Strong through year’s end<\/h2>\n
\"David<\/a>

David Eisen, Director of Hotel Intelligence and Customer Solutions, HotStats<\/p><\/div>\n

In December, U.S. hotels experienced an increase of 1.5 percent GOPPAR recording $71.41 with revenue centers such as Rooms\u2014up 2.4 percent, Food & Beverage\u2014up 3.3 percent\u2014and Conference & Banqueting all up, with increases of 2.4, 3.3 and 5.1 percent, respectively.<\/p>\n

TRevPAR growth in December resulted in a 2.6 percent year-over-year increase with $225.56, nearly $33.50 below the full-year figure of $259.10, a 2.9 percent increase over the year prior.<\/p>\n

Even with the increases, profit levels were impacted by rising costs, including a 1.1 percentage point increase in labor to 38.2 percent, as well as a 0.7-percentage-point increase in overheads, which increased to 25.4 percent in December.<\/p>\n

Based on the data, HotStats projects that 2019 could be an uneven year for the hotel industry and very much dependent on concerns over GDP output and other economic factors.<\/p>\n

\u201cEscalating labor costs\u2014a symptom of low unemployment and wage growth\u2014were top of mind for hoteliers in 2018, and will also be in 2019,\u201d <\/em>Eisen said. \u201cHowever, hoteliers have illustrated that\u2014while expense creep is all too real\u2014they have been able to adapt and get their heads around it. Top-line numbers are forecasted to attenuate, but if hoteliers are able to get a hold of costs like they did in 2018, it could prove to be another healthy year profit wise.\u201d<\/em><\/p>\n

Faced with the rapid growth of the room-sharing industry<\/a>, some hotel chains were eager over the past two years to adopt the competition’s model, through the acquisition of or investment in Airbnb-like companies<\/a>. <\/p>\n

There\u2019s been a lot of hotel sales activity in recent months, including AD1 Global acquiring five hotel properties<\/a> spread throughout the South for $92.5 million this past December.<\/p>\n

Image courtesy of HotStats<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Despite macroeconomic concerns and an overall expectation that the industry metrics are slowing down, hotel profits increased last year, according to a new HotStats report.<\/p>\n","protected":false},"author":451,"featured_media":1004296481,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21751,23891,21742],"tags":[43994],"class_list":["post-1004296475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-hotel","category-national","category-latest","tag-hotstats"],"acf":[],"yoast_head":"\nUS Hospitality Sector Continues Growth Trend - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/us-hospitality-sector-continues-growth-trend\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US Hospitality Sector Continues Growth Trend\" \/>\n<meta property=\"og:description\" content=\"Despite macroeconomic concerns and an overall expectation that the industry metrics are slowing down, hotel profits increased last year, according to a new HotStats report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/us-hospitality-sector-continues-growth-trend\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-05T11:18:30+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-02-05T15:21:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2019\/02\/hotel.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Keith Loria\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/us-hospitality-sector-continues-growth-trend\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/us-hospitality-sector-continues-growth-trend\/\",\"name\":\"US Hospitality Sector Continues Growth Trend - 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