U.S. hotel industry profits nearly reach record high at $162 billion
The profit rebound signals an increase in business and leisure travel in the U.S.; however, revenue growth slowed in 2012 pointing to a rise in operation costs and property expansions.
Excerpt from Hotel News Now
Following an increase in 2011, U.S. hotel industry profits recorded another strong gain during 2012, based on data from STR Analytics’ 2013 HOST Almanac.
Based on nearly 6,000 hotels reporting income and expense statements to STR, U.S. hotel-industry profit came in just under the peak level recorded in 2007. Total industry revenue levels topped an estimated US$162 billion, with house profit reaching US$58 billion and net operating income just under US$40 billion.
“No matter how you revenue-manage your hotel, it’s ultimately about profit,” said Carter Wilson, director of STR Analytics, which oversees the HOST Almanac. “While it’s encouraging that the gross numbers for 2012 is near record highs, many properties are still not back to peak profit. 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.”