AH MARCH 2024

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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.

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