STR: U.S. hotel profits hit all-time high

U.S. hotel industry-wide house profit reached a record-breaking $80 billion in 2018, according to results from STR’s 2019 HOST Almanac.

U.S. revenues topped an estimated $218 billion in 2018, which was an increase of $10 billion from the previous year.

Using a same-store analysis for 4,700 hotels that participated in the HOST program in both 2018 and 2017, total labor costs grew 3.2 percent, which was below the 4.0 percent growth levels of 2016 and 2015, but higher than revenue growth for the second straight year. Overall, gross operating profits increased 2.8 percent on 2.9 percent total revenue growth.

“Although expenses continued to outpace revenue in terms of growth, 2018 produced stronger profits than expected,” said Joseph Rael, STR senior director of consulting and analytics. “As we’ve not