Finance & DevelopmentFinanceApril 2018: TrevPAR Hit a High at Full-Service U.S. Hotels

April 2018: TrevPAR Hit a High at Full-Service U.S. Hotels

Total revenue levels at full-service hotels in the United States hit a high of almost $290 per available room in April 2018 as strong year-over-year revenue increases were recorded across all operating departments, according to the latest poll of full-service hotels from HotStats.

The TrevPAR measure encompasses the revenue generated across all operating departments at U.S. hotels in April, led by a 5.6 percent year-over-year increase in revenue in the rooms department as well as growth in non-rooms revenues, including food/beverage (up 8.4 percent) and conference/banqueting (up 11.6 percent) on a per available room basis.

The growth across all revenue centers fueled a 6.5 percent year-over-year increase in TrevPAR, which hit a post-global financial crisis high of $287.53 per available room in April. That meant revenue levels edged past the $285.87 achieved in this measure last month.

While growth in RevPAR included a 0.2 percentage point year-over-year increase in room occupancy to 82 percent, it was led by the 4.6 percent increase in achieved average room rate, which was recorded at $218.78 in April, just short of the March peak.

In addition to the growth in revenue, U.S. hotels were further buoyed by an increasingly uncommon decline in labor costs, which fell by 0.4 percentage points to 32.1 percent of total revenue.

As a result of the movement in revenue and costs, profit per room at U.S. hotels grew by 9.1 percent year-over-year in April 2018 to $120.02, which was only just behind the previous high of $121.56 recorded in October 2017.

Additionally, the cost savings enabled hotels in to record a profit flow-through of 56.8 percent, highlighting the ability of hoteliers to drive profit levels during periods of positive performance. The profit per room increase in April helped to shore up the year-to-date growth in bottom-line performance at U.S. hotels, which was up 3.9 percent for the four months to April 2018 to $102.39.

“April marked another month of positive trading for hotels in the U.S. It’s very pleasing to see the high levels of conversion being achieved at a very punchy 41.7 percent of total revenue this month,” says Pablo Alonso, CEO of HotStats. “Particularly notable is the healthy level of flow through where the less profitable non-rooms generating departments led the revenue growth.”

Profit & Loss Key Performance Indicators – U.S. Full Service Hotels
April 2018 vs. April 2017

RevPAR: +5.6% to $179.32
TrevPAR: +6.5% to $287.53
Payroll: 0.4 pts to 32.1%
GOPPAR: +9.1% to $120.02
Flow Through +56.8%

RELATED ARTICLES

Dreamscape Hospitality Assumes Management of Three Hotels in Houston

HOUSTON, Texas—Dreamscape Hospitality announced that it has assumed management of three hotels in Houston, Texas. "We are excited to deepen our presence in Texas through...

Hilton Announces Plans to Debut Spark by Hilton in Puerto Rico

PONCE, Puerto Rico, and MIAMI, Florida—Hilton announced the signing of Spark by Hilton Ponce, marking the upcoming debut of the brand in the Caribbean...

Wyndham Announces Partnership With Cygnett

DELHI—Wyndham Hotels & Resorts announced a new strategic alliance with Cygnett Hotels & Resorts that will not only introduce its La Quinta by Wyndham...

New Pyramid Global Hospitality COO Continues Focus on Big Data to Benefit Owners

Pyramid Global Hospitality Chief Operating Officer Eric Habermann retired in April following seven years with the company and a nearly 40-year career in hospitality....

Grand Hyatt Kauai Resort & Spa Launches Scholarship Program

Grand Hyatt Kauai Resort & Spa, a 605-room resort, announced the launch of a scholarship program to support the continued education of its colleagues...

Hilton Surpasses 500 Hotels in Florida

MCLEAN, Virginia, and MIAMI, Florida—Hilton announced a major milestone as the company surpassed 500 open hotels across Florida. This growth was fueled in part...