JULY WAS, OVERALL, a good month for the U.S. hotel industry, according to HotStats. A 2.9 percent rise in gross operating profit per available room and 1.6 percent increase in RevPAR made it the sixth month of year-over-year profit growth.
GOPPAR stood at $85.72 and RevPAR at $163.36 average for the month, according to HotStats. This was the result of a 0.9 percent increase in the average room rate and a 0.6 percentage-point jump in occupancy.
TRevPAR increased by 3.5 percent to $247.31 because of the growth recorded in ancillary revenues.
“Hotels in the U.S. are bucking global profit trends, with only three months over the last 22 when GOPPAR turned negative,” said HotStats Director of Hotel Intelligence for the Americas David Eisen. “Operators are doing an admirable job of making sure top-line gains result in bottom-line success, but they will need to continue to drive flow through in order to maintain and keep these gains afloat.”
However, the month also witnessed a 4.6 percent increase in labor costs, which grew to $90.87 per available room, equivalent to 36.7 percent of total revenue.
The annual San Diego Comic-Con helped the city hotels to record a $185.41 GOPPAR, which was an 8.7 year-over-year increase and around $35 above the year-to-date 2019 average.
Ancillary revenues of the city increased 13.5 percent, resulting in a 5.1 percent increase in TRevPAR and a modest 1.1 percent increase in RevPAR.
Boston hotels also saw a 5.2 percent increase in profit per room, making July the seventh consecutive month with a GOPPAR growth for that city.
The 2.8 percent year-over-year increase in RevPAR was led by a 1.1 percentage-point increase in occupancy, which topped out for the year at 92.5 percent, and 1.6 percent increase in the average room rate.
In June, U.S. hotels saw a dip in RevPAR but a rise in ancillary revenue led to a small increase in the profits.