AFTER TWO CONSECUTIVE months of gain, U.S. hotel profits were on the slide in October, according to HotStats. Decreasing rooms and F&B revenue and rising costs led to the decline.
Gross operating profits per available room decreased 2.8 percent to $126.97 over the same time last year. RevPAR decreased 2.1 percent to $190.93, due to a 1.8 percent drop in average room rate and a 0.3 percent dip in occupancy, according to HotStats.
A decrease in rooms revenue and F&B revenue resulted in a 0.9 percent decrease in TRevPAR to $300.54. The month also witnessed a 1 percent increase in labor costs, up 2.3 percent on a PAR basis.
Washington D.C. and Houston, which hosted the World Series games, saw gains in both revenue and profits, as the Nationals secured the 2019 title in seven games.
A 13 percent growth in average room rate helped D.C. secure a 10.2 percent increase in RevPAR and, despite the year-over-year losses in F&B revenue, TRevPAR was up 6.4 percent.
GOPPAR increased 10 percent while profit margin was up 1.6 percent to 49 percent. Despite the series loss, Houston’s RevPAR was up 3.7 percent, aided by a 1.9 percent growth in rate and 1.3 percent increase in occupancy.
As expenses partially ate into revenues, the city’s GOPPAR was up 2.2 percent.
U.S. hotels saw a 1.1 percent increase in September.