Austin Hotels Record a Banner Month in October Thanks to F1 Grand Prix COTA

Key Performance Indicators

October 2018 vs. October 2017

RevPAR: +4.3% to $214.45
TRevPAR: +3.4% to $299.10
Payroll: +0.2 pts. to 22.1%
GOPPAR: +3.5% to $164.03

U.S. hotels recorded their highest level of profit per room for the year in October, attaining revenue increases across all departments despite mounting costs, according to the latest full-service hotels report from HotStats.

City-specific, Austin had a banner month, aided by the F1 Grand Prix Circuit of the Americas, which drew some 250,000 spectators over the weekend of October 19 through 21 to the area.

The uplift in demand at hotels in the city meant that room occupancy levels soared to an annual high of 87.8 percent, which was 2.2 percentage points above the same period in 2017 and almost 7 percentage points above the year-to-date figure. In addition, achieved average room rate at hotels in the Texan capital increased by 1.8 percent to $244.24.

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As a result, hotels in Austin recorded a 4.3 percent year-on-year increase in rooms revenue to $214.45, which contributed to the 3.4-percent increase in TRevPAR to $299.10.

Alongside the acclaimed South by Southwest Festival, the F1 Grand Prix is highly anticipated by hotels in Austin as it brings a significant boost in performance levels, illustrated this month by TRevPAR recorded at more than $55 above the year-to-date figure of $243.08.

Despite the 0.2 percentage point increase in labor costs to 22.1 percent of total revenue, hotels in Austin successfully recorded a 3.5 percent increase in profit per room in October to $164.03

Profit performance was only surpassed by the performance in March, when hotels recorded GOPPAR of $167.79, which was led by demand from South by Southwest.

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