Profit Per Room at U.S. Hotels Bounced Back in May

Profit

After a negative turn in April, profit per room at U.S. hotels bounced back in May, increasing by 2 percent year-over-year (YOY) and buoyed by growth across all revenue centers, according to the latest data from HotStats.

While May’s GOPPAR of $112.80 was 4.7 percent above the year-to-date GOPPAR figure at $107.73, it was almost $6 below the profit level in April at $118.51.

According to HotStats, this was a function of demand, albeit a significant acceleration in costs was recorded in May, including a 4.7 percent YOY increase in payroll to $97.49, on a per-available-room basis.

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It was a positive month of revenue growth across all departments for U.S. hotels, with YOY revenue increases recorded in food and beverage (up 3.5 percent) and conference and banqueting (up 2.4 percent), on a per-available-room basis.

This was supported by a 2 percent increase in RevPAR, as U.S. hotels successfully resumed growth in achieved average room rate, following a decline in April, increasing by 1.5 percent in May to $215.22. This was led by growth in rate in the corporate (up 1.3 percent) and residential conference (up 2.1 percent) segments.

Growth across rooms and non-rooms departments contributed to the 3.4 percent YOY increase in TRevPAR to $283.54.

“Despite resuming growth in revenue this month, hoteliers in the U.S. are reminded to keep an eye on creeping costs and their impact on profit,” said David Eisen, director of hotel intelligence and customer solutions, Americas, at HotStats. “Payroll, for one, continues to be a thorny issue that hoteliers need to stay vigilant on.”

Profit & Loss Key Performance Indicators

May 2019 vs. May 2018

RevPAR: +2.0% to $172.24
TRevPAR: +3.4% to $283.54
Payroll: +4.7% to $97.49
GOPPAR: +2.0% to $112.80

 


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