How does the U.S. hotel industry stack up against other sectors in terms of revenue and profitability?
Source: hotelnewsnow.com
The upper-midscale segment proved most resilient during the recession, Wilson said. The segment recorded a net change in revenue per available room of 104.4% when measuring the percent of 2007 RevPAR achieved in 2013. (A reading of 100% would indicate the same reading in 2007 as in 2013.) The upper-upscale and midscale/economy segments followed at 101.6%, with luxury right behind (101%). Only the upscale segment failed to recover RevPAR fully as of 2013, reporting 99.7% growth from trough to peak.
“No class has recovered in terms of profitability,” Wilson said. “In 2013, they are all below where they were in 2007.” The upper-upscale segment has come closest, reporting a 96.5% increase from trough to peak. Luxury hotels are recovering most slowly, reclaiming 89.4% of total profit per available room in 2013 compared to 2007.