Atlanta, GA, May 1, 2012.-- The U.S. lodging industry recovery may have begun in 2010, but it wasn’t until 2011 that the improved prosperity was shared by nearly all hotels in the country. In 2011, 80.5 percent of the properties that participated in the PKF Hospitality Research, LLC (PKF-HR) Trends® in the Hotel Industry annual survey enjoyed an increase in total revenue, while nearly three-quarters (72.3%) of the participants achieved growth in profits.
The recently released 2012 edition of Trends® presents aggregate average changes in unit-level revenues, expenses and profits from 2010 to 2011. The data come from a sample of nearly 7,000 financial statements received from hotels located throughout the United States.
For the Trends® report, hotel profits are defined as net operating income (NOI) before deductions for capital reserves, rent, interest, income taxes, depreciation, and amortization.
“On average, hotels in the 2012 edition of Trends® sample saw their profits increase by 12.7 percent in 2011. The good news is not isolated to a select few property categories, but rather, all hotel types were able to enjoy gains on the bottom-line,” said R. Mark Woodworth (top right photo), president of PKF-HR.
Resort hotels led the way with an NOI gain of 18.1 percent, followed by full-service hotels which posted a 14.7 percent increase in profits. “Not surprisingly, these two property types also achieved the greatest gains in average daily room rates (ADR) from 2010 to 2011,” Woodworth noted.
Lagging in profit growth were suite hotels. Both extended-stay and full-service suite hotels were unable to leverage their lofty occupancy levels into the magnitude of ADR gain required to significantly drive profitability.
“While news of growing profits is welcome, longer-term U.S. hotel owners know that their investment still has a ways to go to achieve the annual dividends that were earned prior to the recent recession,” Woodworth added.
“In 2011, the average Trends® hotel achieved a profit level equal to $12,972 per available room. In nominal dollars, this is roughly 25 percent short of the peak profit levels achieved in 2007.”
For a complete copy of the PKF report, please contact:
R. Mark Woodworth
PKF Hospitality Research
Tel: 404 842 1150, ext 222
Email: mark.woodworth@pkfc.com
Chris Daly
Daly Gray Public Relations
Tel: 703 435 6293
Email: chris@dalygray.com
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