The hospitality industry is one of the nation’s largest employers; ranking it among the top 10 largest industries. The hospitality industry includes lodging properties, restaurants, airlines, cruise lines, car rental firms, travel agents, and tour operators.
According to the AHLA (American Hotel & Lodging Association), the hospitality industry provides the United States with the following 2011 economic and employment statistics:
Effects on U.S. Economy • Resident and international travelers in the United States spend an average of $2.2 billion a day • $813 billion in sales are generated (excluding international passenger fares on U.S. airlines) • $124 billion in federal, state, and local taxes are paid
Effects on Employment • $194.6 billion in wages and salaries • Employs 1.8 million hotel workers • Provides more than 7.5 million jobs
2011 Room Sales by property size (Based on 51,015 properties. Source: STR)
TYPICAL LODGING CUSTOMER IN 2010 • 40% business • 60% leisure
INTERNATIONAL TRAVELERS TO UNITED STATES
International visitors accounted for 21% of all lodging sales. Ten countries accounted for 80% of U.S. visitors. The top 10 countries in terms of U.S. arrivals for 2011 were Canada (21.3 million), Mexico (13.5 million), United Kingdom (3.8 million), Japan (3.2 million), Germany (1.8 million), Brazil (1.5 million), France (1.5 million), South Korea (1.1 million), People’s Republic of China (1.1 million) and Australia (1.0 million).
RECOVERING HOTEL INDUSTRY The United States hotel industry appears to be in a recovery phase; September to-date having gained 29.2%, beating the S&P 500’s 16.6% rise. According to Smith Travel Research (STR), the 2011 estimated revenue and profitability improved for the second year in a row; revenue increased 8% to $153 billion; profit increased 15% to $33 billion. The recovery appears to be sustained into 2012. The industry’s peak was in 2007 with $156 billion in revenue and $40 billion in profit. For more info: http://ehotelier.com/hospitality-news/item.php?id=22373_0_11_1_C
HOTEL OCCUPANCY RATES Occupancy rates should improve from their present levels but gaming revenue is expected to decline. Money will be spent on guest rooms, restaurants and other non-casino activities. While casino business may not flourish, gambling will prosper in Las Vegas and the state of Nevada.
2011 Selected Statistical figures (Based on properties with 15 or more rooms) [From AH&LA's 2012 Lodging Industry Profile, based on 2011 numbers.]
• Properties 52,214 • Guestrooms 4,874,837 • Sales, in billions $137.5 • RevPar $61.05 • Average Occupancy 60.0%
As with most industries, the hospitality industry’s growth rates depend on present economic conditions and expected economic environments. Forecasts indicate that Europe will have burdensome economic issues for several years. China is emerging in both domestic and international travel and tourism. The United States, an important hotel market should enjoy a growth period.
STR Global, a leading provider of key performance statistics for the hotel industry, defines four key regions of the world as Asia Pacific, Americas, Europe and Middle East/Africa. STR uses the following statistical measurements in analyzing the economic results of the hotel industry.
• Occupancy Percentage: Rooms sold divided by rooms available • ADR: Room revenue divided by rooms sold • RevPAR: Room revenue divided by rooms available