The U.S. hotel industry ended 2010 with US$127.7 billion in total revenue-a 0.4-percent increase over 2009, according to the Hotel Operating Statistics (HOST) Study for 2010, compiled by STR.
According to the HOST Study, pre-tax income increased 12.5 percent to US$2.0 billion in 2010 after dropping 38 percent in 2009. Gross Operational Profit (GOP) rose to 35.3 percent compared with 34.0 percent in 2009. The increase in GOP can be attributed to operating expense reduction practices in 2009 that carried over to 2010 as well as revenue increases, according to Lana Yoshii, VP of content management at STR.
"U.S. hoteliers slashed operating expenses in 2009 to offset the devastating losses in revenues, resulting in a 38-percent loss in pre-tax income," Yoshii said. "However, with increased revenues and a watchful eye on expenses in 2010, hoteliers increased pre-tax annual income by 12.5 percent. We predict industry profits will continue to rise in 2011 as hotel demand and rates continue to grow."
The industry experienced occupancy and revenue-per-available-room increases during 2010. The 5.6-percent increase in occupancy to 57.6 percent was the largest year-over-year occupancy increase in the history of STR data collection. RevPAR turned a corner in March 2010 after 19 consecutive months of RevPAR decreases to end the year with a 5.5-percent increase to US$56.47.
Average daily rate was the only key performance metric to report a slight decrease, ending the year with a 0.1-percent decline to US$98.07.
Supply grew 1.9 percent, and demand increased 7.6 percent to just slightly more than 1 billion room nights sold.
The U.S. hotel industry has proved to be in the early stages of recovery this year, and STR expects this to continue for the remainder of 2011.
"2010 was the year the industry finally started to show signs of recovery," said Amanda Hite, STR's president. "This recovery was entirely fueled by increased demand while rates remained flat. In 2011 we expect the industry recovery to accelerate, driven by increased pricing power."
The HOST Study is the most extensive and definitive database on the U.S. hotel industry revenues and expenses. The study includes operating statements from more than 6,200 hotels. HOST contains information on hotel revenues and expenses, as well as information by department including rooms, food & beverage, marketing, utility costs, property and maintenance, administrative & general, and selected fixed charges. HOST is available in electronic, PDF or Excel files, or printed versions.
Updated : 07-06-2011 08:57:26
Source : www.traveldailynews.com