AH MARCH 2024
Welcome to interactive presentation, created with Publuu. Enjoy the reading!
News
News
www.asianhospitality.com
10 ASIAN HOSPITALITY MARCH 2024
.S. hotel revenues and profitability
saw an increase in 2023 compared to
2022, with improvements in group
business across the top 25 markets and
upper-scale chains, according to STR's 2023
P&L data. Overall, 14 of the top 25 markets
reported double-digit increases in GOPPAR.
“Total industry revenues and profits
were well beyond 2022 levels as pricing
power continued to outweigh the impact
of softer leisure demand,” said Claudia
Alvarado Cruz, senior analytics manager
at STR. “A lift in corporate demand made
improvements especially notable across the
upper-upscale brands and major markets.
New York City was the shining example
with 47 percent growth in GOPPAR.”
In 2023, GOPPAR reached $75.83, marking
an 8.2 percent increase from 2022. TRevPAR
stood at $211.49, indicating a 9.6 percent rise,
while EBITDA PAR amounted to $53.05, up
7.6 percent from the prior year. Labor costs
notably increased, reaching $71.56, reflecting
a 13.2 percent rise.
“F&B labor costs on a per-occupied-
room basis showed the largest growth of
any department in 2023,” said Alvarado
Cruz. “Year over year, F&B revenues on
the same basis were up 9.1 percent but
remained down compared to 2019 when
adjusted for inflation. Further evidence
of the improvement in group business,
banquet and catering per occupied room
showed an increase of 13 percent this year.”
In September, U.S. hotel profitability
surged with increased corporate demand
and group bookings, aligning with a
rise in labor costs. According to CoStar,
the positive trend aligned with a recent
uptick in U.S. hotel labor costs that
signaled a shift towards a more balanced
business mix and significant growth in
group demand.
CoStar: GOPPAR reached $75.83 for
2023, up 8.2 percent from 2022
Full-service chains, major markets boosted U.S. hotel profitability during the year
GOPPAR reached $75.83
in 2023, marking an 8.2
percent increase from
2022, according to CoStar.
Labor costs increased,
reaching $71.56, reflecting
a 13.2 percent rise.
pproximately 72 percent of Americans are
set to either maintain or increase their hotel
stays in 2024 compared to 2023, according
to a recent survey by American Hotel & Lodging
Association. Over the next four months, around 53
percent plan overnight leisure travel, and 32 percent
anticipate overnight business travel. Moreover, ho-
tels continue to be the preferred lodging choice, with
71 percent of likely business travelers and 50 percent
of likely leisure travelers favoring them.
Despite a positive outlook for hoteliers, the
survey, commissioned by AHLA and conducted by
Morning Consult, found that inflation is preventing
hotels and other travel-related businesses from
reaching their full potential.
Americans favor hotel stays
Approximately 51 percent of respondents plan
overnight travel for a family trip in the next four
months, with 39 percent expressing a likelihood
to stay in a hotel, the survey said. For a romantic
getaway, around 38 percent are likely to travel
overnight, of which 60 percent anticipate staying
in a hotel.
Around 32 percent plan overnight travel for
Spring Break, with 45 percent indicating a likelihood
of staying in a hotel, it added. Of those surveyed, 35
percent prioritize high-speed WiFi as their top tech-
nological amenity when evaluating hotels, while 14
percent consider keyless entry or mobile check-in in
the same regard. The poll surveyed 2,202 U.S. adults
from Jan. 6 to 7.
“These survey results underscore the tremen-
dous potential 2024 holds for hoteliers and hotel
employees,” said Chip Rogers, AHLA president and
CEO. “The year ahead will not be without challenges,
however, and these findings show that inflation is
preventing hotels from reaching their full potential.
Still, hoteliers are optimistic about the year ahead
and excited continue providing excellent services for
guests throughout 2024.”
Over the next four months, 56 percent of respon-
dents are less likely to choose hotels due to inflation,
the AHLA survey revealed. Similarly, 53 percent
express reduced willingness to engage in overnight
travel, while 48 percent are less inclined to opt for air
travel, and 44 percent are disinclined to rent a car, all
citing inflation as a contributing factor.
Survey: Most Americans to maintain or increase hotel stays in 2024
Inflation hampers hotels and travel businesses' full potential, survey says
Hotels remain the preferred lodging choice for
71 percent of likely business travelers and 50
percent of likely leisure travelers, according
to a survey by the American Hotel & Lodging
Association.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36