Skip to content

Search

Latest Stories

HotStats: Profits dropped to negative value in March

The month’s 110.6 percent fall in GOPPAR is the largest ever recorded for the country

AS THE MONTH in which the COVID-19 pandemic began, March saw the first drops in hotel profits around the world, according to HotStats. In the U.S., as elsewhere, the decrease was to more than 100 percent down from the previous year.

GOPPAR dropped 110.6 percent to negative $12.71 during the month in the U.S., which was home to a third of the more than 2.7 million COVID-19 cases recorded globally. It was the largest decline HotStats has measured since it began tracking U.S. data, beating -10.4 percent in March 2015, and was the first time GOPPAR was recorded as a negative value.


“The decrease in GOPPAR was a result of mammoth drops on the revenue side. RevPAR for the month was down 64.4 percent, heavily influenced by a 48.8-percentage-point drop in occupancy to 31.5 percent,” HotStats said in a statement. “The presumption is that April occupancy will suffer even more, as many hotels were still open in early March.”

TRevPAR also dropped a 62.1 percent as a result of the dip in RevPAR, along with a more than 65 percent drop in total F&B RevPAR. Expenses also dropped as hotel operations slowed, with labor costs going down 21 percent

“However, savings in payroll did not match drops in revenue, since many hotels still had to maintain certain levels of staffing, even amid shuttered hotels,” HotStats said.

March’s profit margin fell 52.8 percentage points to -11.6 percent.

“As COVID-19 conceivably lessens or peters out in the ensuing weeks and months and hotels reopen, expectations are that hotel performance will pick up from the depths it is in currently,” HotStats forecast. “But with demand tied closely to GDP growth and expectations of double-digit drops in the second quarter across the globe, hoteliers will be hard-pressed to generate a modicum of revenue throughout the rest of the year and likely will have to wait until there is a vaccine to see profits normalize.”

HotStats had foreseen an “ugly March and April” in the U.S. market based on declines in the Asia-Pacific region in an April 10 report.

More for you

AHLA members meet with U.S. lawmakers to discuss key hospitality legislation impacting hotel owners and workers

AHLA shares priorities with lawmakers

AHLA Members Unite on Capitol Hill to Advance Hospitality Legislation

MORE THAN 250 American Hotel & Lodging Association members met with lawmakers in the U.S. Senate and House to discuss legislative priorities critical to the hospitality industry. They raised concerns about tax and trade policies impacting hotel operating costs and travel demand amid ongoing budget reconciliation and tax negotiations.

Members also discussed expanding and upskilling the hospitality workforce through measures such as adjusting the H-2B visa cap and protecting the franchise model, which supports more than half of all U.S. hotels and 2.8 million jobs, the association said in a statement.

Keep ReadingShow less
CBRE: US Hotel RevPAR to Grow 1.3 Percent in 2025

CBRE: RevPAR to grow 1.3 percent in 2025

U.S. HOTEL REVPAR is expected to grow 1.3 percent in 2025, supported by urban markets from group and business travel and increased demand for drive-to and regional leisure destinations, according to CBRE. Occupancy is forecast to rise 14 basis points and ADR 1.2 percent year-over-year.

This represents slower growth than CBRE’s February forecast, which projected 2 percent RevPAR growth based on a 21-basis-point increase in occupancy and a 1.6 percent rise in ADR, the commercial real estate and investment firm said.

Keep ReadingShow less
Palette Hotels to Transform DoubleTree by Hilton in Washington, PA

Palette to manage Washington, PA, DoubleTree

Palette’s Expertise in Hospitality Management

SUNRISE GOLD HOSPITALITY recently selected Palette Hotels to manage its 140-room DoubleTree by Hilton Washington Meadow Lands Casino Area in Washington, Pennsylvania. Palette will oversee renovations, including Hilton Connected Rooms technology upgrades, new signage, landscaping, building systems and updates to the lobby, guestrooms, bathrooms, meeting spaces, restaurant, bar and lounge.

Sunrise Gold Hospitality is led by owner Ramesh Pandya, and Palette Hotels by Founder and CEO Richard Lou.

Keep ReadingShow less