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| R. Mark Woodworth |
Atlanta, GA –– U.S. hoteliers enjoyed a seventh
consecutive year of increasing profits in 2016 despite a slowdown in the rate
of revenue growth.
According to the recently
released 2017 edition of Trends® in the Hotel Industry by CBRE Hotels’ Americas
Research, total operating revenue, driven by a 0.2 percent rise in occupancy
and a 2.5 percent growth in average daily rate (ADR), increased by 2.4 percent
in 2016 for the average hotel in its survey sample.
However, by limiting the
growth in operating expenses to just 1.6 percent, managers at the Trends®
properties were able to extract a 3.7 percent increase in gross operating
profits (GOP) for the year.
“The competitive market
conditions faced by U.S. hotels in 2016 have been well documented. With the results of the 2017 Trends® report,
we now have an understanding of the impact that the modest revenue gains had on
the bottom-line,” said R. Mark Woodworth,
senior managing director of CBRE Hotels’ Americas Research.
“Clearly, U.S. hotel
operators saw the threat of stagnant or declining occupancy and slow ADR growth
and reacted by controlling expenses. The
3.7 percent increase in profits is the lowest we have observed since the Great
Recession, but was a commendable accomplishment given the upward pressures on labor
and distribution costs.”
For a
complete copy of the company’s news release, please contact:
Chris Daly
Daly Gray Public Relations
703 435 6293
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