Philadelphia Hotels Saw Profits Decline at the End of 2018

Philadelphia

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 2017

RevPAR: +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.

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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.