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US hotel industry has its best year so far

US hotel industry has its best year so far

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

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