GROSS OPERATING PROFITS per available room for U.S. hotels rose a little in June despite a dip in RevPAR, according to Hotstats. Ancillary revenue, money brought in from the hotels’ sale of non-room related items like souvenirs, premier services and upgraded amenities, mitigated the RevPAR decline.
GOPPAR was up 0.9 percent over the same period last year to $113.10 while RevPAR decreased 0.5 percent to $175.14. Room occupancy declined 1.1 percent and the average room rate was up 0.8 percent year-over-year.
According to the Hotstats data, the growth in profits was derived from a 2 percent year-over-year increase in ancillary revenues, which grew to $101.89 per available room. This was led by a 0.9 percent increase in food/beverage and a 1.1 percent increase in conference/banqueting revenues, on a per-available-room basis.
TRevPAR also increased by 0.4 percent to $277.03.
“June was a classic case of room revenue not dictating overall profitability, demonstrating how other revenue streams cannot be overlooked,” said David Eisen, HotStats director of hotel intelligence and customer solutions for the Americas. “Beyond that, a 17.1 percent drop in rooms cost of sales showed how hoteliers are further gaining a foothold against online travel agencies.”
However, Houston witnessed a 12.6 percent year-over-year decline in GOPPAR to $53.01. This was on the back of a 9.2 percent drop in RevPAR as room occupancy fell by 7.8 percent to 66.7 percent.
The Dallas market recorded an overall 2.7 percent year-over-year increase in profit per room for year-to-date 2019. The city recorded a 19.5 percent increase in GOPPAR to $69.34 and a 3.9 percent increase to $114.47 in RevPAR.
A similar, 2.4 percent bump in non-room revenue helped the nation’s hotels turn a profit in January despite the federal government shutdown, Hotstats previously reported.