Finance & DevelopmentHouston Hotels See GOPPAR Drop in June

Houston Hotels See GOPPAR Drop in June

Nationwide, U.S. hotels recorded their fifth month of profit growth in June, according to HotStats’ most recent data tracking full-service hotels. However, not every U.S. city had a banner month—GOPPAR at Houston hotels declined 12.6 percent year-over-year (YOY) to $53.01.

The drop was on the back of a 9.2 percent decline in RevPAR as room occupancy fell by 7.8 percentage points YOY to 66.7 percent. Oversupply is a likely culprit, according to HotStats, as there are about 20,000 new rooms in the market since 2010. As a consequence, ancillary revenues at Houston hotels fell by 8.2 percent YOY to $43.71 per available room—equivalent to 30.9 percent of total revenue.

Although Houston hotels did all they could to cut costs, which included a 6.3 percent YOY reduction in labor, it was not enough to prevent a fifth month of YOY profit decline in 2019 for the market.

Profit & Loss Key Performance Indicators – Houston
June 2019 vs. June 2018

RevPAR: -9.2% to $97.72
TRevPAR: -8.9% to $141.43
Payroll: -6.3% to $44.69
GOPPAR: -12.6% to $53.01


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