Skip to content
Search

Latest Stories

HotStats: U.S. trails the world in hotel profits

Rising expenses are eating meager gains in revenue

U.S. HOTELS REMAIN stuck in the low profitability trend begun by the COVID-19 pandemic even as the global market continues to adjust upward, according to HotStats. The trend continued in September as time passes away from the small bump seen in recent summer travel.

Hotel profits for the month stood at negative $9.19, down 34 percent from the month prior and a 109.6 percent year-over-year decrease, according to new data from HotStats. It was the seventh consecutive month for negative profits, according to the report, with similar results seen in August.


At what is typically a strong time for hotels, rising expenses are eating marginal gains in revenue. RevPAR rose 7.5 percent over August to $38.11 following a 1.7-percentage-point increase in occupancy, bringing rates up slightly. Total RevPAR went up more than $4 over the previous month.

At the same time, labor costs for September rose, contributing to a $12 increase since April, as previously closed hotels reopened. The costs also rose as a percentage of total revenue by 9 percentage points since July, and total overhead costs rose 5.5 percent over August but were down 46.8 percent from the previous year.

"U.S. hotels can't seem to break out of their profit malaise unlike other global regions, which have cinched at least positive month-to-month profit," said David Eisen, HotStats director of hotel intelligence, Americas. "A summer bump from leisure travel could give way to a quieter winter, as corporate and group travel are forecasted to remain muted. Hoteliers have found innovative ways to generate revenue from their assets, but it may not be enough to fill a rather widening gap."

The outlook for the immediate future remains unclear, according to HotStats, and depend largely on whether Congress passes another round of stimulus money. Associations such as AAHOA and the American Hotel & Lodging Association have been maintaining pressure on Congress to come to an agreement on the next stimulus bill.

More for you

AAHOA, Bridge launch AAHOALending.com

AAHOA, Bridge launch AAHOALending.com

AAHOA AND BRIDGE launched AAHOALending.com, a digital lending platform focused on hospitality. It offers AAHOA members access to more than 150 lenders, with plans to add more regularly, while allowing users to compare financing options, find the best rates and secure funding.

Bridge, led by Cofounder and CEO Rohit Mathur, has been named a Club Blue Industry Partner, the highest level in AAHOA’s program, with only 12 of its 300 partners qualifying, the duo said in a joint statement.

Keep ReadingShow less
HWIC joins WHLA to support industry women

HWIC joins WHLA to support industry women

THE HOSPITALITY WOMEN’S Innovation Council recently joined as the 34th member of the Women in Hospitality Leadership Alliance to support women and underserved communities across the industry. The council will encourage women to take part in the messaging, programs and initiatives shared by all WHLA groups.

WHLA was founded in 2021 as a consortium of organizations working to advance women in hospitality.

Keep ReadingShow less
CJ Media WHLA media training event for women in 2025

CJ Media, WHLA launch media training for women in hospitality

CJ Media & WHLA Empower Women with Media Training in 2025

CJ MEDIA SOLUTIONS LLC and the Women in Hospitality Leadership Alliance will provide quarterly media training to help advance women in hospitality. The program, offered to the alliance’s participating organizations, will draw on experienced media and PR professionals to deliver guidance across interviews, video, podcasts and live panels.

Each session will be archived for alliance members to access anytime, the duo said in a statement.

Keep ReadingShow less
Choice Hotels MasteryX 2025 Hack-a-Thon competition in Scottsdale

Choice hosts 10th MasteryX summit in Scottsdale, AZ

Choice Hotels MasteryX 2025: Driving Tech Innovation in Scottsdale

CHOICE HOTELS INTERNATIONAL kicked off its 10th annual MasteryX tech summit in Scottsdale, Arizona. Around 650 associates are attending the week-long event to explore technologies and address real-world challenges through workshops, competitions and knowledge-sharing sessions focused on helping hotel owners increase revenue, reduce costs and improve efficiency.

Choice technologists will examine how artificial intelligence, quantum computing and other technologies can support business intelligence, cyber security, on-property operations and the scaling of the company’s tools and systems, Choice said in a statement.

Keep ReadingShow less