LONDON — Across the board in December 2019, U.S. hotels grew the top line while also carrying the bottom line, according to data from HotStats. RevPAR jumped 5.3 percent versus the same time last year, boosted by a 2.3 percent year-over-year (YOY) increase in average rate and a 1.9-percentage-point jump in occupancy. For the full year of 2019, RevPAR at U.S. hotels increased 0.9 percent YOY.
Profit & Loss Performance Indicators — United States
December 2019 vs. December 2018
RevPAR: +5.3% to $141.06
TRevPAR: +6.1% to $230.19
Payroll: +4.1% to $87.65
GOPPAR: +10.8% to $71.84
Increases in ancillary revenue bolstered room revenue growth and resulted in a 6.1 percent YOY jump in total revenue—despite escalating expenses from undistributed departments and total payroll, which was up 4.1 percent YOY, on a per-available-room basis. Total expenses on a per-occupied-room basis increased 2.5 percent YOY.
The confluence of revenue and expense led to a 10.8 percent YOY increase in GOPPAR in December 2019. GOPPAR was up 1.0 percent for the year versus 2018. Profit margin increased 1.3 percentage points to 31.2 percent in December.
“U.S. hotels finished out 2019 on a strong note, but the overall yearly numbers were flatter, and portend what could be a very similar 2020,” said David Eisen, director of Hotel Intelligence, Americas, HotStats. “In order to ensure profitability in the face of expense creep, hoteliers will need to focus their team strategies on profitability, which is a team effort across all operated and undistributed departments.”
San Francisco Market Performance — December 2019
On the west coast, San Francisco’s RevPAR grew 9 percent YOY, lifted by a 6.2 percent YOY uptick in rate. RevPAR for the year increased a solid 6.6 percent over 2018. TRevPAR grew 5.8 percent, even in the midst of flattish revenue growth from food and beverage operations.
Profit & Loss Performance Indicators — San Francisco
December 2019 vs. December 2018
RevPAR: +9.0% to $192.72
TRevPAR: +5.8% to $274.38
Payroll: +5.6% to $142.25
GOPPAR: +31.4% to $47.54
San Francisco’s GOPPAR in December grew a robust 31.4 percent, bolstered by gains in revenue and cost containment. Total hotel labor costs as a percentage of total revenue came down 3.4 percentage points, while expenses across undistributed departments also waned. As an example, total A&G expenses came down 4.9 percent YOY, on a per-available-basis.
Profit margin in San Francisco grew 1.3 percentage points to 31.2 percent.
Houston Market Performance — December 2019
Houston hotels in December saw an overall decrease in RevPAR year-over-year, but hoteliers in the market were able to eke out a small gain in total revenue that resulted in flat year-over-year GOPPAR.
Profit & Loss Performance Indicators — Houston
December 2019 vs. December 2018
RevPAR: -3.3% to $80.01
TRevPAR: +0.8% to $146.77
Payroll: -0.5% to $51.15
GOPPAR: -0.1% to $42.40
Houston RevPAR in December declined 3.3 percent YOY, dragged down by declines in both occupancy (down 1.8 percentage points) and average rate (down 0.1 percent). Total revenue, however, rose 0.8 percent YOY, driven by gains in the F&B department.
Overall, GOPPAR in December for Houston hotels was basically flat—down 0.1 percent YOY. However, on a per-available-room basis, hoteliers managed undistributed expenses. This included property and maintenance (down 5.1 percent YOY, including a 14.3 percent reduction in utilities) and information and technology (down 9.3 percent YOY).
GOPPAR for the year in Houston declined 4.3 percent YOY. Profit margin in December was down 1.5 percentage points to 27 percent.
