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.