U.S. HOTELS RECORDED a 2.4 percent increase in profits per room in January over the same time last year, according to HotStats. The gains came despite the government shutdown, driven mostly by growth in non-rooms revenues and building on the 3.4 percent increase in GOPPAR seen in 2018.
The non-rooms revenues increased by 5.3 percent and the growth in ancillary revenues included increases in F&B up 4.4 percent, and Conference and Banqueting up 6.5 percent.
RevPAR for January slightly increased with 0.8 percent to $140.90, while room occupancy fell by 1 percentage points to 67.4 percent. TRevPAR recorded a 2.6 percent increase to $239.18, maintaining 2018’s 2.9 percent year-over-year positive growth performance. GOPPAR also increased by 2.4 percent to $76.27.
However, 35-days government shutdown did affect the January results as Washington, D.C.’s RevPAR, TRevPAR, GOPPAR rates fell down by 5.2 percent to $104.15, 5.3 percent to $161.95 and 81 percent to $1.57 respectively. The decline in revenue worsened by rising costs, led by a 1.4 point increase in the payroll.
“Washington, D.C, hotels felt the brunt of the government shutdown,” said David Eisen, HotStats’ director of hotel intelligence and customer solutions for the Americas. “Despite its length, it was mostly contained to the nation’s capital and had less of an impact on the rest of the country’s hotels.
“While positivity continues, hoteliers in 2019 will still have to contend with growing expenses that can have an adverse impact on profitability.”
New Orleans recorded a 15.3 percent GOPPAR increase as it gained from the temperate climate and events such as the Sugar Bowl and beginning of Mardi Gras celebrations.
November saw the biggest drop in profits during 2018, according to a previous HotStats report. They dropped 5.2 percent from November 2017.