revpar
Revenue per room uptick projected for Bangkok hotels
January 21, 2020
Despite hotels in Thailand tallying a 6% plunge in revenue per available room (RevPar) in 2019, the prospect of 40 million tourist arrivals this year has led to the likely addition of 50,000 new rooms across the country over five years. The weak performance resulted from a decline from the Chinese market and other headwinds. Of the total, 15,000 of the new rooms will be in Bangkok, which was the least affected destination with a 2% dip in RevPar last year, said Jesper Palmqvist, area director of Asia-Pacific for STR, a hospitality market analyst. At the Thailand Tourism Forum 2020, STR forecast Bangkok hotels will improve RevPar this...
HVS Industry Statistics Update – Q4 2019
Jerod S. Byrd | January 3, 2020
By Jerod Byrd Occupancy levels across the U.S. remained generally stable through October 2019, while ADR registered a marginal increase of less than 1%. Research suggests that RevPAR will end 2019 below the 1% mark; this represents a further year-over-year deceleration in RevPAR, which has been the general trend since 2015. The continued entrance of new supply and the slowdown in job growth are the primary factors contributing to the recent trend. Supply is anticipated to continue to increase by nearly 2% in 2020, which will likely outpace demand growth. While RevPAR is projected to remain positive in 2020, the decelerating growth trend is...
UK Q3 Ends on High Note With RevPAR and GOPPAR Gains
November 14, 2019
The third quarter ended on a high note for U.S. hotels, as September profit per room climbed year-over-year, indication that the current cycle still has teeth. GOPPAR in the month was up 1.9% over the same time last year, part of a third quarter that saw profit grow 0.2%, dragged down by a challenging July when GOPPAR decreased 2.0% YOY, according to data from HotStats. September’s bottom-line rise was fueled by a 1.1% YOY jump in RevPAR, led wholly by a 1.4% increase in average room rate. Occupancy for the month was down 0.3 percentage points YOY. The corporate segment led the growth in RevPAR, with a stout 5.1% YOY increase in ra...
3 Reasons You Can’t Trust RevPAR
HotStats | October 14, 2019
Revenue per available room, or RevPAR, has historically been the most widely used metric for benchmarking performance in the hospitality industry. Its success as a key performance indicator or KPI is the result of its efficiency and simplicity. RevPAR is efficient because it combines the results of both occupancy and average rate into one number. And it’s simple, because all you need to calculate it is occupancy and average rate: RevPAR = Occupancy * ADR But its simplicity and straightforwardness conceal its faults and limitations. Here are three reasons you can’t put all your eggs in the RevPAR basket: 1. RevPAR does not measure...
Managing RevPAR for Profits
CBRE | September 18, 2019
By Robert Mandelbaum and Bram Gallagher Ph.D. Per the name, the historical role of revenue managers has been to maximize revenue - specifically rooms revenue or RevPAR. RevPAR growth is achieved by increasing occupancy and/or average daily rates (ADR). Basic economic theory says that prices influence changes in demand (rooms occupied). Depending on the date and market conditions, an increase in ADR typically tends to mute, or reduce, changes in demand. Conversely, a lowering of ADR will most likely stimulate demand and increase occupancy. Historically, revenue managers have adjusted ADR to find the best mix of occupancy and ADR that...
RevPAR High Note Shattered by Profit Din at UK Hotels
HotStats | August 26, 2019
In a scenario that’s becoming exceedingly familiar, and one that illustrates the frequent occurrence of revenue and profit misalignment, RevPAR at hotels in the UK hit a high in July, but GOPPAR turned negative, sapped by rising costs, according to the latest data tracking hotels from HotStats. July is historically a peak month for UK hotels, with high occupancy enabling premium pricing that helps fuel top-line performance. This year was no different, with hotels recording a 1.0% increase in RevPAR to £117.25, led by 86.6% room occupancy coupled with a 1.5% year-over-year increase in average room rate to £135.52. The growth in Re...
Canadian Lodging Outlook Quarterly 2019-Q2
About HVS Canada | August 21, 2019
HVS and STR are pleased to provide you with the quarterly report of the Canadian Lodging Outlook. Each report includes occupancy (occ), average daily rate (ADR), and revenue per available room (RevPAR) for six major markets. Source: STR Source: STR If you would like a detailed hotel performance data for all of Canada, STR offers their Canadian Hotel Review. The Canadian Hotel Review is available by annual subscription. For further Information, please contact: [email protected] or +1 (615) 824-8664 ext. 3504. ...
U.S. Hotel Interest Coverage / Robert Mandelbaum and John B. Corgel, Ph.D.
Robert Mandelbaum | August 20, 2019
By Robert Mandelbaum and John B. Corgel, Ph.D. According to the March 2019 edition of CBRE’s Hotel Horizons® forecast report, RevPAR growth for the U.S. lodging industry will be limited to under 2.5 percent through 2020. Further, CBRE is projecting a 0.6 percent decline in RevPAR for 2021 as CBRE expects the economy to slow down during the year. The combination of modest increases in revenue and rising operating expenses (especially labor) make hotel owners and operators nervous about their ability to enjoy profit growth the next few years. While the profit growth story is concerning, it should it should be noted that current GOP...
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