US hotel industry has record year for profits
The US hotel industry had its best year ever in 2005, generating almost $128 billion in revenues and more than $22.6 billion in profits, according to a new study.
Profits last year were slightly above the $22.5 billion the industry made in the year 2000, which was the highest level achieved, said Smith Travel Research (STR).
“The hotel industry is fifing on all cylinders,” said Randy Smith, founder and CEO of STR.
“Nationwide average daily rate (ADR) and occupancy figures increased 5.4% and 2.9% respectively n 2005,” he added.
He said the industry has rebounded substantially since 9-11.
Higher group business and a limited number of new hotels should mean even higher occupancies and room rates in the future, said Mark Lomanno, president of STR.
“We estimate that the industry will open 75,000 new rooms in 2006, roughly a 1.2% supply addition. This increase in new rooms is still well below the historical average of 2.1%,” he said, predicting the hotel business will do well through the year 2008.
The only downside to the study was that rising labor, energy and insurance costs have cut profits in the industry.
“Profits as a percentage of revenue in 2005 was 18.4%, well below the 20.1% profit margin we reported in 2000,” said Mr Lomanno.
Report by David Wilkening
David
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive