-
The Super Bowl hosted in New Orleans led to considerable year-over-year gains, despite a dip in occupancy and increased departmental expenses. – Image Credit Unsplash
- Total Revenue per Available Room (TRevPAR) and Gross Operating Profit per Available Room (GOPPAR) in U.S. hotels increased by 6.1% and 6.5%, respectively, powered by high-impact events.
- Major events such as the Super Bowl and NBA All-Star Game significantly boosted revenue and profitability in key markets, emphasizing the importance of event-driven demand in the hotel industry.
According to HotStats February data, the U.S. hotel industry has seen a moderate yet significant upswing in key performance indicators. Total Revenue per Available Room (TRevPAR) rose by 6.1%, and Gross Operating Profit per Available Room (GOPPAR) increased by 6.5%. The Gross Operating Profit Margin (GOP%) also registered a slight uptick of 0.1 percentage points.
While national figures reflect a steady trajectory, certain markets demonstrated more dynamic shifts, driven primarily by high-impact events. It was not just room revenue that witnessed a surge; across-the-board spending by guests contributed to a 37% rise in TRevPAR and 41.2% increase in Total Revenue per Occupied Room (TRevPOR), indicating heightened consumer spending in various sectors, including Food & Beverage and other ancillary services.
The Super Bowl hosted in New Orleans led to considerable year-over-year gains, despite a dip in occupancy and increased departmental expenses. Revenue and profit metrics such as Average Daily Rate (ADR), TRevPAR, and GOPPAR escalated sharply during the Super Bowl event window, indicating an overall hike in spending per room, even though guest numbers were lower than last year.
San Francisco observed a similar trend, with a 91.6% year-over-year increase in GOPPAR in February, driven by the NBA All-Star Game and Lunar New Year celebrations falling on the same weekend. However, the city’s overall market performance remains below pre-pandemic levels, underlining the importance of event timing and the event itself in influencing market performance.
These findings underline the critical role of targeted events in driving market performance, particularly for destinations still recovering from the impact of the pandemic. For hotel operators and asset managers, these trends underscore the importance of maximizing the impact of major events, optimizing upsell strategies and ancillary revenue, and maintaining close control over departmental expenses to ensure increased revenues translate into higher profits.
Discover more at HotStats.
