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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. Hotel Construction Drops to 40-Quarter Low: CoStar

CoStar: U.S. hotel construction hits 40-quarter low

Summary:

  • U.S. hotel rooms under construction fell year over year for the ninth month, CoStar reported.
  • About 137,956 rooms were under construction in September, down 12.3 percent from 2024.
  • In September, 12,746 midscale and 4,559 economy rooms were under construction.

U.S. HOTEL ROOMS under construction fell year over year for the ninth consecutive month in September, reaching the lowest level in 40 quarters, according to CoStar. Still, more rooms are under construction now than after the Great Recession.

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