Latest Data on U.S. Hotel Performance
Skift Take
- U.S. Hotel Industry Performance (Oct 2023): Shows mixed results with slight declines in occupancy (-1.8%) and EBIDTA PAR (-1.2%), but increases in ADR (+3.0%), RevPAR (+1.2%), TRevPAR (+4.0%), GOPPAR (+3.7%), and LPAR (+5.9%).
- Hyatt plans over 35 new luxury hotels by 2025 across its brand portfolio.
- Other notable openings include Auberge Resorts' Bowie House in Texas, Six Senses Xala in Mexico, Riu Palace Pacifico's refurbishment in Mexico, and new Universal Orlando resorts.
The DJIA fell 70 points, the Nasdaq was down 83, the S&P 500 was down 18, the 10-year treasury yield was down .05 to 4.12% and lodging stocks were mostly lower. IHG did trade up to a new high but most lodging stocks were modestly lower. SOHO traded down -7%.
STR commentary on U.S. performance for October 2023 includes: Top-Line Metrics (percentage change from October 2022): Occupancy: 65.8% (-1.8%); ADR: $161.56 (+3.0%); and RevPAR: $106.38 (+1.2%). Bottom-Line Metrics (percentage change from October 2022: TRevPAR: $240.74 (+4.0%); GOPPAR: $97.45 (+3.7%); EBIDTA PAR: $69.60 (-1.2%); and LPAR: $74.48 (+5.9%). Upper Upscale chains are continuing to lead the growth in revenues and profits, with better than 16% GOPPAR growth through October year to date. Luxury chains are the only scale to show GOPPAR declines this year. Room labor costs (per occupied room) are up 7%, the second highest labor cost increase behind F&B labor (+9%).
Overall labor costs POR are up approximately 7.5%. Catering and banquet revenues are up 20% from last year. The volume of rooms under construction increased from a month prior but remained down versus a year ago. Year to date, RevPAR decreased from +6.1% a month prior to +5.5%. The RevPAR downward trend is in line with STR’s November forecast update, which shows full-year RevPAR growth of +4.8%. The Top 25 Market demand fell less than the rest of the country, and ADR grew faster versus those remaining markets.
STR said US hotel RevPAR for the week ended December 2nd was down -0.8%. Group RevPAR was up 0.9%.
The Waldorf Astoria Orlando unveiled a property-wide re-imagination including a floor-to-ceiling transformation of all 502 guestrooms and suites, the lobby arrival experience, new design and culinary innovations at the property’s restaurants, enhancements to The Waldorf Astoria Spa and a complete restoration of the
