Key Performance Indicators
September 2018 vs. September 2017
RevPAR: +9.6 percent to $278.13
TrevPAR: +7.1 percent to $365.57
Payroll: -2.2 pts to 37.4 percent
GOPPAR: +17.2 percent to $150.13
In San Francisco, profit per room increased by 17.2 percent year-on-year (YOY) in September as demand levels were driven by major technology conferences, according to the latest data tracking full-service hotels from HotStats.
In addition to the Dreamforce conference, which is one of the largest software conferences in the world, the city’s Moscone Center also hosted the Disrupt SF event in September, driving the demand for hotel accommodations. As a result of the increased activity, profit per room at hotels in the city jumped by more than $22 YOY in September to $150.13, which was the second-highest GOPPAR level recorded at hotels in the city in 2018.
The growth in profit was led by YOY increases across all revenue departments including rooms (up 9.6 percent) and food and beverage (up 1.6 percent) on a per available room basis, which contributed to the 7.1 percent increase in TRevPAR at hotels in San Francisco to $365.57.
The growth in revenue at hotels in San Francisco was further stimulated by cost savings, which included a 2.2 percentage-point reduction in labor costs to 37.4 percent of total revenue. As a result of the movement in revenue and costs, profit margin at hotels in San Francisco was recorded at 41.1 percent of total revenue in September.
“San Francisco, and the wider Bay Area, is renowned as a hub for technology companies and this is now translating into new events and conferences, supporting the continued growth in the sector and encouraging visitors related to the sector,” said David Eisen, director of Hotel Intelligence & Customer Solutions at HotStats. “This can only be a good thing for the health of the San Francisco hotel industry, which has shown signs of recovery in profit in 2018 following a challenging period of operation last year.”