Finance & DevelopmentFinanceU.S. Hotel Profit Growth Bounces Back in November After Downward Blip

U.S. Hotel Profit Growth Bounces Back in November After Downward Blip

A negative profit turn for U.S. hotels in October gave way to robust growth in November as GOPPAR climbed 6.1 percent year-over-year (YOY), the second-highest increase of 2019, according to data from HotStats. While strong in November 2019, year-to-date (YTD) profit growth was somewhat muted—up just 0.3 percent.

Profit & Loss Performance Indicators
November 2019 vs. November 2018

RevPAR: +1.7% to $162.67
TRevPAR: +3.2% to $260.28
Payroll: +2.0% to $97.29
GOPPAR: +6.1% to $91.23

November was a strong revenue story, particularly on the food and beverage front, according to HotStats. RevPAR increased 1.7 percent YOY, led by a 1 percent uptick in average room rate, while F&B RevPAR grew 4.1 percent. The combination resulted in a 3.2 percent YOY increase in total revenue, which is now up 1.5 percent YTD.

Labor costs on a per-available-room (PAR) basis increased 2 percent in November 2019; however, the strong revenue led to a 0.4-percentage-point decrease in labor costs as a percentage of total revenue. Other YOY costs in November 2019 grew, including sales and marketing (up 2.3 percent) and administrative and general (up 11.5 percent). Total overhead costs on a PAR basis increased 1.2 percent.

Profit margin grew 1 percentage point to 35.1 percent.

“After an October dip, it’s good to see the U.S. hotel industry back up on the revenue and profit side, in what has been a rather choppy year,” said David Eisen, director of hotel intelligence, Americas, HotStats. “Despite a strong November, the U.S. is set for slightly above to flat growth for the year.”


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