PKF Hospitality Research is predicting our sector is on track to set a new record by posting the longest double-digit growth streak since it started tracking the industry in 1937.
According to PKF-HR’s recently released 2015 edition of its annual hotel industry trends report, U.S. hotels posted a 12.3 percent increase in net operating income last year, marking the fourth consecutive year of profit growth over 10 percent.
And PKF-HR is projecting that double-digit growth will continue for at least two more years, with estimates of a 13.4 percent increase in 2015 and 12.2 percent growth in 2016.
According PKF-HR’s senior managing director, R. Mark Woodworth, the average hotel sampled for the report achieved a bottom-line profit of $17,849 per available room. He says this is nominally greater than 2007 pre-recession peaks. And this year, he says, inflation-adjusted hotel profits will exceed 2007 levels.
The strong increases are not unexpected. Last year, PKF-HR predicted 2014 income would be up 12.4 percent.
It’s all great news for an industry on the cusp of so much change, particularly in distribution. And we are excited to be a part of this growth. Here at DHISCO, we serve the success of the industry by enabling connectivity and content that the industry relies on for increased bookings.
We also know that boom times are great for innovation. And as the hotel industry works to meet all the new challenges of big data, personalization and mobile technology demands, we are working side-by-side with our hotel and distribution partners to develop the next generation tools the industry needs to continue its record growth.
– Toni Portmann