OCTOBER SAW THE highest profit per room of the year for U.S. hotels, up 3.6 percent over the same time last year to $126.34 per room, according to HotStats. The gains came despite rising costs from labor and overhead, driven mostly by increased revenue and an annual high average room rate of $223.36.
The per room profit for October beat the previous high of $120.54 seen in April and was about $25 over the year-to-date amount of $101.36. All revenue centers reported increases during the month, including a 3.2 percent increase for rooms revenue, 2.2 percent increase for F&B and 2.5 percent increase for conferences.
With the increases in revenue departments came a rise in TRevPAR, up 3.4 percent from the same time last year to $294.57. RevPAR rose 3.2 percent to $182.65.
Labor costs rose 0.1 percent to 31.5 percent of total revenue, while overheads rose 0.3-percent to 20.9 percent of total revenue. Despite those cost increases the profit marging stood at 42.8 percent of total revenue.
The commercial sector accounted for 45.5 percent of all accommodated roomnights. Corporate usage rose 2.6 percent, residential conference revenue rose 2.1 percent, individual leisure use rose 2.6 percent and group leisure rose 4.4 percent.
“It was an extremely positive month of performance for hotels in the U.S., with continued growth leading to new highs across top- and bottom-line metrics,” said David Eisen, HotStats’ director of hotel intelligence and customer solutions. “Still, hotel owners and operators must keep a vigilant eye on expenses, as they show no signs of attenuating.”