Results from STR’s Host Almanac 2017 indicate that the Unites States hotel industry revenue and house profit reached all-time highs in 2016.
Revenues topped an estimated US$199 billion in 2016, increasing nearly US$9 billion from 2015.
Total industry-wide house profit exceeded US$76 billion, a per-available-room increase of two per cent from 2015.
Even though records were set in each category, STR’s Consulting & Analytics team notes that growth was much lower than the levels experienced in 2015.
House profit increased four per cent compared with 11.1 per cent in 2015.
Total revenues increased 4.5 per cent in 2016 after rising 8.1 per cent in 2015.
“Inflation-adjusted revenues topped the previous peak, and real house profit levels were the second-highest we’ve seen,” said Joseph Rael, STR director of financial performance.
“However, in the past year, we’ve also seen revenue growth slow considerably throughout the country.
“With RevPAR (revenue per available room) growth forecasted below three per cent for the next couple of years, we only expect modest profit increases in the short term.”