GROSS OPERATING PROFITS per available room for U.S. hotels in September was more than $20 above the rate recorded in August, according to online data tracking company HotStats. A rise in corporate travel helped drive the increase in profitability.
GOPPAR rose 5.9 percent to $95.66 in September over the same period last year. Revenue grew in all departments, led by F&B with a 7.6 percent increase per available room. Non-rooms revenue pushed Total RevPAR up 3.4 percent to $252.30.
Labor costs dropped 0.3 percent from last year to 35.1 percent of total revenue, further bolstering TRevPAR. RevPAR increased 0.6 percent to $158.72. Overall, U.S. hotels saw profit margins at 37.9 percent of total revenue.
“While the summer was a relatively successful period of operation, owners and operators will be glad to see a return to more robust levels of performance and a busy fall period to support the profit growth recorded so far in 2018,” said David Eisen, HotStats’ director of hotel intelligence and customer solutions.
Phoenix, Arizona, hotels saw some one of the highest increases in GOPPAR, up 32.6 percent in September over last year. RevPAR in the city grew 15.6 percent, due in part to a rise in demand from business travelers.
“Hotels in Phoenix will be glad to see the end of the summer period as the desert city is not as much a popular leisure destination due to the stifling heat,” Eisen said. “September has marked a return to business as usual and despite the challenges during the summer, year-to-date profit per room at hotels in Phoenix remains ahead of the same period in 2017.”
San Francisco, California, also saw one of the highest rises in GOPPAR, up 17.2 percent over last year to $150.13 due to an increase in demand from several major technology conferences. It was the second highest GOPPAR levels for the city this year.
A 2.2 percent decrease in labor costs also helped the profit margin for hotels in the city. It reached 41.1 percent of total revenue.
“San Francisco, and the wider Bay Area, is renowned as a hub for technology companies and this is now translating into new events and conferences, supporting the continued growth in the sector and encouraging visitors related to the sector,” Eisen said.