Tags: Trends

US hotel industry has its best year so far

Tuesday 30th May 2006 17:07

The US hotel industry had its best year in 2005, generating almost $123b (£65.3b) in revenues and $22.6b (£12b) in profits.

Profits last year were slightly above the previous highest total of $22.5b (£11.95b) earned in 2000, according to figures from Smith Travel Research (STR).

The report also showed that the nationwide average daily rate in 2005 (ADR) had increased by 5.4% year-on-year to $90.91 (£48.30), while occupancy levels were up 2.9% to 63.1%.

“After the tragic events of 9/11, we can say with confidence the industry has rebounded, and for the next two years we expect further excellent results,” said STR’s chief executive Randy Smith.

The benchmarking company estimates the industry will open an extra 75,000 rooms throughout 2006, a 1.2% supply addition.

But with demand expected to increase by around 3%, the firm says occupancy and room rates will increase further.  

By Ross Bentley

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku
Join the craze and play Sudoku online!
Newswire
For the latest hospitality news, sign up for our e-mail news alerts.

Featured video - for more, visit Caterer and Hotelkeeper’s YouTube channel >>

    Caterer and Hotel Keeper Jobs
    Most ReadLatest Articles
    Most ReadMost Viewed Articles
    Related Industry Resources
    Sign up to Caterer and Hotelkeeper
    Mobile Site
    Also on Caterer and HotelKeeper
    Blogs