RevPAR recovery felt in all chain scales except upscale. Profit recovery still lagging

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.

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RevPAR recovery felt in all chain scales except upscale. Profit recovery still lagging

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.

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