US hotel industry finishes 2019 strong

Miles Hurley Miles Hurley Uploaded 29 January 2020

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US: According to intelligence service HotStats, the American hotel industry had a December to be thankful for.

The data platform revealed that, within its data, the industry saw growth across the board, while also carrying it down to the bottom line. While its December numbers were strong (a 31.2 per-cent profit margin finished off the year) the full 2019 numbers look less extraordinary. 

The Key stats are as follows

  • Total revenue saw a huge 6.1 per-cent year on year growth
  • This is in comparison to expenses, which only grew 2.5 per-cent
  • RevPAR was up .9 per-cent year on year compared to 2018  

David Eisen, Hot Stats America's hotel intelligence director attempted to interpret the data: "U.S. hotels finished out 2019 on a strong note, but the overall yearly numbers were flatter, and portend what could be a very similar 2020."

"In order to ensure profitability, in the face of expense creep, hoteliers will need to focus their team strategies on profitability, which is a team effort across all operated and undistributed departments."

The company also released profiles of two individual cities, Houston and San Francisco, revealing differing trends for the two cities. 

San Francsico's industry rose in spite of its media perception of less reputable behavior. The city's GOPPAR rose by a robust 31.4 per-cent in December. 

Houston, unfortunately saw a relavtively stagnant month, with RevPAR declining, and only a modest increase in GOPPAR. This increase, however, is due to the industry managing expenses well, a strong sign for the future.

The American hotel market is improving heading into 2020, and with more boutique offerings on the market, this segment may rise alongside the market as a whole.

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