Profit Loss Key Performance Indicators – U.S. (in USD)

December 2017 v December 2016

  • RevPAR: +3.4% to $128.29
  • TrevPAR: +3.4% to $216.99
  • Payroll: + 0.1 pts to 37.1%
  • GOPPAR: +12.7% to $69.49

    Despite recording a 0.1 percentage point increase in labor costs, to 37.1 percent of total revenue, hotels in the U.S. were able to successfully cut costs across a number of departments this month and as a result, profit per room increased by 12.7 percent to $69.49, the lowest level recorded in 2017. This was equivalent to a profit conversion of 32.0 percent of total revenue.
    “Volume is always a struggle at this time of year as the holiday season kicks in and the market shifts towards a more leisure-oriented mix. Some locations are more successful at adapting to this shift than others, but this will ultimately have an impact on performance levels throughout the profit and loss for all markets.
    That said, hotels in the U.S. have successfully managed to record a year-on-year increase across all measures, punctuating a good year of trading, which will no doubt satisfy hotel owners and operators,” said Pablo Alonso, CEO of HotStats.
    On the West Coast this month, top and bottom line growth was steady, with hotels in Los Angeles recording the stand outincrease in profit per room, despite the continued incremental uplift in costs.

    Profit Loss Key Performance Indicators – Los Angeles (in USD)

    Dece mber 2017 v December 2016

    • RevPAR: +4.5% to $131.51
    • TrevPAR: +5.1% to $200.45
    • Payroll: +2.2 pts to 44.6%
    • GOPPAR: +11.6% to $50.74 

    The 4.5 percent year-on-year uplift in RevPAR at hotels in Los Angeles in December was almost entirely fueled by a 4.4 percent increase in achieved average room rate to $179.30 and was in spite of room occupancy remaining stable at 73.3 percent.
    Performance levels were further supported by growth across non-rooms departments, which contributed to the 5.1 percent increase in TrevPAR this month to $200.45.
    And despite payroll levels creeping up to 44.6 percent of total revenue, cost cutting in other departments meant hotels in LA were able to record an 11.6 percent increase in GOPPAR to $50.74, equivalent to a 25.3 percent profit conversion.
    In line with the Los Angeles market, hotels in New York had a relatively strong month of performance. Buoyed by its profile as a destination for the holidays, room occupa ncy levels hit 90.6 percent in December, which, coupled with a 0.2 percent increase in achieved average room rate, to $387.18 contributed to a 0.5 percent increase in RevPAR.
    While limited growth in non-rooms departments meant that TrevPAR at hotels in New York increased by just 0.3 percent, and year-on-year labor costs increased by 2.3 percentage points (to 38.7 percent of total revenue), savings in other departments meant that hotels in the Big Apple recorded a 2.1 percent increase in profit per room to $189.37.

    Profit Loss Key Performance Indicators – New York City (in USD)

    December 2017 v December 2016

    • RevPAR: +0.5% to $350.67
    • TrevPAR: +0.3% to $474.49
    • Payroll: +2.3 pts to 38.7%
    • GOPPAR: +2.1% to $189.37

    In contrast to the performance of hotels in the Los Angeles and New York City markets, profit performance at properties in Washington D.C., plummeted to an annual low this month, which was, in part, fueled by the fall in demand as C ongress broke for the holidays midway through December.
    The challenging month of performance was led by a 3.8 percentage point drop in room occupancy, to 62.3 percent, well below typical volume levels for the year. The drop in room occupancy was further exacerbated by falling average room rate, which fell by 2.7 percent for the month to $178.22, and contributed to the 8.2 percent decline in RevPAR to $111.05.
    In addition to the falling revenue levels, escalating costs in the capital impacted profit levels, which was exemplified by the 4.8 percentage point increase in labor costs to a lofty 53.9 percent of total revenue.
    As a result, profit per room at hotels in Washington D.C., fell by 29.7 percent year-on-year in December to $23.65, equivalent to a profit conversion of just 12.8 percent of total revenue.

    Profit Loss Key Performance Indicators – Washington D.C. (in USD)

    December 2017 v December 2016

    • RevPAR: -8.2% to $111.05
    • TrevPAR: -8. 9% to $184.74
    • Payroll: +4.8 pts to 52.9%
    • GOPPAR: +29.7% to $23.65

    Contact
    David Stephens
    Operations Manager – HOTSTATS
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