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HotStats: U.S. hotels see a 0.6 percent rise in profits in January

Report predicts more pressure on hoteliers in subsequent months

U.S. HOTELS STARTED January with a 0.6 percent year-over-year increase to $67.79 in GOPPAR, according to HotStats. But, as the full scope of the coronavirus becomes clearer, the market report predicts more pressure on hoteliers in subsequent months to generate both top-and bottom-line profits growth.

After wrapping up 2019 with strong performance in revenue and profits, RevPAR in January increased 2.7 percent to $143.38 compared to the same time last year while occupancy increased 1 percent. TRevPAR went up 3.2 percent to $234.19.


The month also saw a jump in expenses, led by a 5.3 percent increase in total labor costs.

New York, already negatively impacted by oversupply, is now fearing a reduction in the number of foreign travelers, especially Chinese. The city’s RevPAR was up 0.3 percent in January to $169.27 while TRevPAR increased 1.7 percent. However, GOPPAR was down 14.7 percent to -$22.93.

On the other hand, Houston recorded a 10.4 percent increase in GOPPAR to $63.05. RevPAR for the city was up 11.8 percent to $112.15 and TRevPAR was up 8.9 percent to $178.36.

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U.S. Delegation Heads to New Delhi as Trade Tensions Rise
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U.S. delegations go to New Delhi amid trade uncertainty

Summary:

  • Two U.S. delegations are in New Delhi this week as a trade deal remains unresolved.
  • The meetings show both sides are maintaining communication.
  • The visits follow Russian President Vladimir Putin’s trip to India to boost economic ties.

TWO SEPARATE U.S. delegations are in New Delhi this week to meet Indian counterparts and address bilateral ties as a trade deal remains unresolved. At the same time, New Delhi is exploring trade options with other countries, including Russia.

Allison Hooker, Under Secretary of State for Political Affairs, will meet senior Indian officials from Dec. 7 to 11. A team led by Deputy U.S. Trade Rep. Rick Switzer arrives Tuesday.

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