TRevPAR hit record highs at hotels in the U.S. in March, propelled by a 6.8-percent year-on-year increase in non-rooms revenues, which offset a 0.6-percent decrease in RevPAR, according to the latest data tracking full-service hotels from HotStats.Hotels in the U.S. successfully recorded a 3.0-percent increase in profit per room in March to $126.47, which was the fourth consecutive month of GOPPAR growth and was only just below the recent high recorded in October 2018 at $126.51.
The exponential growth in TRevPAR came as RevPAR fell 0.6 percent YOY to $181.89.
The robust increase in ancillary revenues included a YOY increase in Food & Beverage (up 4.7 percent) and Conference & Banqueting (up 6.0 percent) revenue, on a per-available-room basis, which fueled the 2.1- percent increase in TRevPAR in March to $295.88, the highest recorded dollar amount in the past four years.
Despite the drop in RevPAR, achieved average room rate at hotels was up 1.3 percent YOY against a 1.6-percentage-point decline in room occupancy.
Profit growth was aided by cost savings, which included a 0.3-percentage-point decrease in payroll as a percentage of total revenue, as well as a 0.1-percentage-point saving in overheads.
The solid top- and bottom-line performance resulted in profit conversion for the month of 42.7 percent of total revenue.
|Profit & Loss Key Performance Indicators – U.S. (in USD)|
|March 2019 v. March 2018|
|RevPAR: -0.6% to $181.89|
|TRevPAR: +2.1% to $295.88|
|Payroll %: -0.3 pts. to 32.2%|
|GOPPAR: +3.0% to $126.47|
“The first quarter of 2019 was kind to hotels, as not only have revenues risen, so too has there been a calming in expenses, which has led to bullish 4.2-percent GOPPAR growth,” said David Eisen, Director of Hotel Intelligence & Customer Solutions, Americas, at HotStats. “Hoteliers will need to keep the pedal to the metal to ensure similar numbers for the remainder of the year.”
On the flip side, supply-striken New York City had a third consecutive month of GOPPAR decline in March, a figure that was off more than 27 percent YOY. The profit drop was led by a 6.0-percentage-point decline in room occupancy, as well as a 5.4-percent decrease in achieved average room rate, which contributed to the 11.8-percent decline in RevPAR.
Falling revenue levels were further exacerbated by rising costs, which included a 4.4-percentage point increase in payroll as a percentage of total revenue to 51.1 percent.
|Profit & Loss Key Performance Indicators – New York City (in USD)|
|March 2019 v. March 2018|
|RevPAR: -11.8% to $241.86|
|TRevPAR: -9.5% to $351.79|
|Payroll %: +4.4 pts. to 51.1%|
|GOPPAR: -27.7% to $87.22|
It was a positive month of profit performance for hotels in Phoenix, as GOPPAR soared by 9.4 percent to hit $243.88, which was well ahead of the rolling 12 months to March 2019 at $100.63.
March is typically a peak month for hotels in Phoenix and despite a 0.9-percentage-point decline in room occupancy, RevPAR increased 3 percent.
As a result of the movement in revenue and costs, profit conversion at hotels in Phoenix was recorded at 53.2 percent of total revenue in March.
|Profit & Loss Key Performance Indicators – Phoenix (in USD)|
|March 2019 v. March 2018|
|RevPAR: +3.0% to $254.68|
|TRevPAR: +5.7% to $458.83|
|Payroll %: -0.5 pts. to 24.9%|
|GOPPAR: +9.4% to $243.88|
The hotels profiled in this report are drawn from the HotStats database and reflect the portfolios and distribution of the hotel chains that we survey and which operate in the full-service sector.
Please note: The data samples are reviewed and rebased each year to reflect the changes in the HotStats survey base. As a result, performance ratios published last year may differ from those contained within this report.
Occupancy (%) - Is that proportion of the bedrooms available during the period which are occupied during the period.
Average Room Rate (ARR) - Is the total bedroom revenue for the period divided by the total bedrooms occupied during the period.
Room RevPAR (RevPAR) - Is the total bedroom revenue for the period divided by the total available rooms during the period.
Total RevPAR (TRevPAR) - Is the combined total of all revenues divided by the total available rooms during the period.
Payroll % - Is the payroll for all hotels in the sample as a percentage of total revenue.
GOPPAR - Is the Total Gross Operating Profit for the period divided by the total available rooms during the period.
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