Hotels in Philadelphia saw declines for both December 2018 and the year as profit levels tumbled, impacted by falling non-rooms revenues and rising costs, according to the latest data from HotStats.
Profit & Loss Key Performance Indicators – Philadelphia
December 2018 vs. December 2017RevPAR: +3.2% to $151.98
TRevPAR: -0.9% to $221.21
Payroll: +5.6 pts. to 38.4%
GOPPAR: -17.0% to $67.49
On a positive note, RevPAR at hotels in Philadelphia increased by 3.2 percent in December to $151.98, despite a 0.8 percentage-point YOY decline in room occupancy, which fell to 73.8 percent.
However, RevPAR growth was wiped out by falling non-rooms revenues, which included an 11.4 percent decline in food and beverage, as well as a 16.1 percent drop in conference and banqueting, on a per-available-room basis. The mix contributed to a 0.9 percent decline in TRevPAR for the month to $221.21.
In addition to the decline in revenue, rising costs, which included a 5.6 percentage-point increase in labor to 38.4 percent of total revenue, contributed to profit per room recorded at $67.49 in the month, more than 45 percent below the YTD figure of $97.56.
