STR: US hotel revenues reach all-time high
STR: US hotel revenues reach all-time high
25 APRIL 2017 7:25 AM

According to STR's 2017 HOST Almanac, U.S. hotel industry revenue exceeded $199 billion in 2016, which was an all-time high.

BROOMFIELD, Colorado—Results from STR’s 2017 HOST Almanac indicate that U.S. hotel industry revenue and house profit reached all-time highs in 2016.

Revenues topped an estimated US$199 billion in 2016, increasing nearly US$9 billion from 2015. Total industry-wide house profit exceeded US$76 billion, a per-available-room increase of 2.0% from 2015.

Even though records were set in each category, STR’s Consulting & Analytics team notes that growth was much lower than the levels experienced in 2015. House profit increased 4.0% compared with 11.1% in 2015. Total revenues increased 4.5% in 2016 after rising 8.1% in 2015.

"Inflation-adjusted revenues topped the previous peak, and real house profit levels were the second-highest we’ve seen,” said Joseph Rael, STR’s director of financial performance. “However, in the past year, we’ve also seen revenue growth slow considerably throughout the country. With RevPAR (revenue per available room) growth forecasted below 3% for the next couple of years, we only expect modest profit increases in the short term."

The following chart details U.S. hotel industry profitability (per-available-room) on an inflation-adjusted basis from 1990 to 2016. In real terms, 2016 total revenues surpassed the levels realized in 2000, which was the previous peak. The inflation-adjusted house profit realized in 2016 was the second-best profit level during the 27-year period.

Please note that this data is extrapolated using rooms revenue data for those hotels reporting to STR, as well as profitability data from properties reporting to the HOST P&L program. Also, house profit is defined as profit before deductions for non-operating income, expenses and management fees.

Same-Store Analysis
STR also analyzed same-store rates of change for approximately 5,000 hotels that participated in the HOST program in 2016 and 2015. In this analysis, full-service hotels grew GOP 2.9%, while limited-service hotels realized only 0.8% GOP growth. Upper Upscale hotels showed the greatest profit increases (+3.6%), while the Midscale/Economy Class segment showed the lowest profit gains (+0.3%).

Franchise fees, management fees and property taxes experienced the largest increases—more than 5.0% growth for each. Utilities decreased 3.6% for the second straight year. The majority of expenses, including food & beverage, administrative & general, and maintenance, increased only modestly, although rooms expense and marketing growth were slightly greater than revenue growth at 3.2% and 3.0%, respectively. Interestingly, total labor costs grew 4.0% in 2016, which was below the 4.2% growth experienced in 2015.

Custom HOST reports including 2016 data are now available for order, and the HOST Almanac will be available for purchase in early May. Please contact for Custom HOST reports or visit for information on the 2017 HOST Almanac and the HOST P&L program.

North America Media Contacts:

Jeff Higley
VP, Digital Media & Communications
+1 (615) 824-8664 ext. 3318

Nick Minerd
Public Relations Manager
+1 (615) 824-8664 ext. 3305

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  • Isabelle May 9, 2017 9:10 AM Reply

    Now I feel stpiud. That's cleared it up for me

  • Isabelle May 9, 2017 9:11 AM Reply

    Now I feel stpiud. That's cleared it up for me

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