In this week’s roundup of news from the Americas region: U.S. P&L turned positive; key factors to U.S. hotel recovery; hotel openings; and people on the move.
Hotel News Now each week features a news roundup from a different region of the world. Today’s review covers the Americas.
US P&L reached positive territory in July
According to STR’s July 2020 monthly P&L report, U.S. hotels for the first time since February recorded positive gross operating profit per available room (GOPPAR). (STR is the parent company of Hotel News Now.)
In year-over-year comparison with July 2019, GOPPAR was down 93.3% to $5.74; total revenue per available room (TRevPAR) declined 74.1% to $60.04; and labor costs (LPAR) was down 64.8% to $28.46. U.S. hotels also lost $9.24 in earnings before interest, taxes, depreciation, amortization per available room (EBITDA PAR), down 115.1% from 2019.
“As the industry inched closer to 50% occupancy, we saw continued incremental improvement in the subsequent profitability metrics,” said Raquel Ortiz, STR’s assistant director of financial performance. “We are of course nowhere near pre-pandemic levels, but there were additional encouraging signs in positive GOPPAR for full-service hotels and six major markets.”
Demand fundamentals, stimulus cash key to US recovery
According to an analysis by Tourism Economics President Adam Sacks, personal savings, government stimulus and stable demand fundamentals will be crucial to U.S. hotel recovery, writes HNN’s Terence Baker from the recent online Hotel Data Conference.
Speaking during a session titled “U.S. macroeconomic overview,” Sacks said the numbers look bleak, with U.S. travel spending predicted to fall 45% in full-year 2020 and potentially climbing to within 7% of 2019 levels by 2024.
Good news, though, is that “losses appear to have leveled off at around 50%,” and “there has been significant rebound from the bottom, starting on Memorial Day,” he said.
STR: Central/South America hotel data for July 2020
Data from STR, parent company of HNN, shows hotels in Central and South America during July reported slight improvement month over month, but low overall performance.
In comparison with July 2019, occupancy dropped 68.6% to 19%, average daily rate fell 33.8% to $53.40 and revenue per available room decreased 79.2% to $10.13 on a U.S. dollar constant currency basis.
Peru continues to record the highest occupancy level in the region due to government initiatives, but the ADR and RevPAR levels were the lowest for any month on record in STR’s Peru database.
Deals, developments, people on the move
- The 200-room Mar Monte Hotel, part of Hyatt Hotels Corporation’s Unbound Collection, opened in Santa Barbara, California. It previously was operating under the Hyatt Centric Brand.
- Sandpiper Lodging Trust announced it purchased two Candlewood Suites Hotels—in North Charleston and Bluffton, South Carolina—from DC Hospitality. The acquisition price was not disclosed.
- Extended Stay America opened the Extended Stay America – Titusville – Space Center – in Titusville, Florida, on 19 August.
- Aimbridge Hospitality appointed Christine Duffy to its board of directors. Duffy is president of Carnival Cruise Line.
- Madeline Hotel & Residences, Auberge Resorts Collection in Telluride, Colorado, appointed Bill Greenwood as executive chef.
Compiled by Dana Miller.