Full-service hotels in the United States recorded a 2.9 percent increase in profit per room in 2017, according to a new publication, Profit Matters: U.S. Annual Hotel Performance Tracker 2018, released by the hotel benchmark service HotStats. Growth in all revenue departments across full-service U.S. hotels fueled a 2.5 percent increase in TrevPAR for the year. The report also draws a correlation between growth in hotel revenue and the 2.3 percent year-over-year increase in U.S. GDP and overall health of the economy.
In addition to an increase in RevPAR, growth in non-rooms revenues like food & beverage—which is up 2.4 percent—contributed to the uplift in TrevPAR. HotStats identified the strongest month of last year for hotel performance as October 2017, during which total revenue levels peaked at $284.03 per available room.
The publication also notes that labor costs increased 1.7 percentage points year-over-year in 2017 to 34.9 percent of total revenue. Nevertheless, the outlook for the overall U.S. hotel market in 2018 is positive, with consumer spending supported by rising household wealth, stock market performance, and rising house prices as well as recently passed tax cuts.
In addition to covering the overall U.S. hotel market, the publication reported profit performance for individual city markets across the country, including Washington D.C., San Diego, Houston, New York City, and San Francisco.