U.S. Hotel Industry Hit Hard in 2009

According to the HOST Study, room revenue in 2009 fell 14.2 percent in year-over-year comparisons. Total revenue for the industry declined US$13.4 billion to US$127.2 billion. This loss in revenue resulted in a reduction in the Gross Operational Profit (GOP) to 34.0 percent, compared to 38.2 percent in 2008.

Each of the three key performance metrics, including occupancy, average daily rate and revenue per available room, reported decreases during every month of 2009. RevPAR fell 16.7 percent to US$53.53, the worst decline recorded since STR started tracking the industry in 1987.

“It is clear that 2009 was a devastating year for the hotel industry,” said Mark Lomanno, STR’s president. “The data indicates that properties throughout the country suffered severe setbacks because of the foundering global economy. The decline in GOP was a tremendous burden for hotel owners and operators everywhere. Although the worst appears to be behind us, there is still a long way to go before the industry completely recovers from the effects of what amounts to the worst year for hotel performance in memory. 

The study included results from more than 5,900 hotels.

Other highlights of the HOST Study:

• Full-service hotels reported an average occupancy rate of 62.5 percent and ADR of US$146.74 in 2009, compared with 2008 when occupancy was 67.4 percent and ADR was US$164.31.
• Full-service hotels’ GOP for 2009 was 29.4 percent, compared to 34.3 percent in 2008.
• Among the participants, full-service hotels generated US$233.72 in total revenue per occupied room night. Full-service independent hotels produced US$295.22 in total revenue per occupied room night, and full-service chain-affiliated hotels produced US$227.86.
• Overall, limited-service hotels reported occupancy of 63.3 percent for 2009 and year-end ADR of US$85.26.
• GOP for participating limited-service hotels in 2009 was 47.1 percent (compared with 51.2 percent in 2008), which amounts to US$9,485 per available room.
• Among the limited-service hotels, the Middle Atlantic region reported the highest occupancy (68.6 percent), followed by the Pacific region (68.4 percent).

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 5,900 hotels. HOST contains information on hotel revenues and expenses, as well as presents 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. For more information and details about HOST, e-mail info@str.com. 

About STR
 
STR provides clients—including hotel operators, developers, financiers, analysts and suppliers to the hotel industry—access to hotel research with regular and custom reports covering North America, Mexico and Caribbean. STR provides a single source of global hotel data covering daily and monthly performance data, forecasts, annual profitability, pipeline and census information. STR founded the STR family of companies and is proudly associated with STR Global, RRC Associates, STR Analytics, and HotelNewsNow.com. For more information, please visit www.str.com.


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