HOST
Almanac
Highlights
2014
U.S. Hotel Operating Statistics for the year 2013
AN A LY TI C S
AN A LY TI C S
The HOST Almanac is an annual publication of STR Analytics, a division of STR, Inc. All information contained
in this report is assembled and compiled by STR Analytics. Although information in this publication has been
obtained from sources that STR Analytics believes to be reliable and accurate, we do not guarantee its accuracy
since it is submitted by third parties. See page 33 for detailed information on study methodology and techniques.
All opinions and estimates included in the HOST Almanac constitute the best judgment of STR Analytics and are
subject to change without notice. This publication is not intended to represent the rendering of legal, accounting or
professional services. Reproduction is prohibited without prior written authorization. Items may be quoted when full
credit is given to the HOST Almanac by STR Analytics.
For publication information:
Call +1 615 338 3535
E-mailHOST@STRanalytics.com
Webwww.STRanalytics.com
Copyright 2014 by STR, Inc. All rights reserved
The HOST Almanac is published by and all data in the HOST Almanac are compiled by:
STR Analytics
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HOST Almanac 2014
Page 2
table of contents
AN A LY TI C S
reports
special report: record revenues push profits closer to all-time highs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
u.s. lodging industry profitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
room revenue’s relationship to market value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
occupancy led recovery for extended-stay hotels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
mapping profitability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
looking back: the u.s. hotel industry in charts and graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
info
geographic regions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
summaries
total u.s. summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
full-service summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
limited-service summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
total u.s. summary ratio-to-sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
total u.s. summary per-available-room. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
total u.s. summary per-occupied-room night . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
full-service
full-service summary ratio-to-sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
full-service summary per-available-room . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
full-service summary per-occupied-room night. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
limited-service
limited-service summary ratio-to-sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
limited-service summary per-available-room. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
limited-service summary per-occupied-room night . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
total u.s. detailed analysis
ratio-to-sales
ratio-to-sales
ratio-to-sales
ratio-to-sales
total
total
total
total
u.s.
u.s.
u.s.
u.s.
per-available-room
per-available-room
per-available-room
per-available-room
per-occupied-room
per-occupied-room
per-occupied-room
per-occupied-room
detailed
detailed
detailed
detailed
total
total
total
total
u.s.
u.s.
u.s.
u.s.
night
night
night
night
revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
departmental expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
undistributed expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
selected fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
detailed
detailed
detailed
detailed
total
total
total
total
u.s.
u.s.
u.s.
u.s.
revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
departmental expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
undistributed expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
selected fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
detailed
detailed
detailed
detailed
revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
departmental expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
undistributed expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
selected fixed costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
payroll analysis
payroll summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
ratio-to-sales total u.s. detailed payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
per-available-room total u.s. detailed payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
per-occupied-room night total u.s. detailed payroll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
payroll ratio-to-sales map by market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
glossary
glossary of HOST terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
HOST Almanac 2014
Page 3
special report:
record revenues push profits
closer to all-time highs
AN A LY TI C S
Hotel industry revenue levels topped an estimated US$163 billion in 2013, with house profits nearing US$60 billion
and net operating income just over US$41 billion, according to STR Analytics’ HOST Almanac. These absolute levels
represent new peaks, though fall shy of the record levels on a per-available-room (PAR) and percent-of-revenue basis
set in 2007.
“2013 was a year for breaking records in the U.S. hotel industry,” said Caitlyn Milton, business intelligence manager of
STR Analytics. “Supply, demand and average daily rate saw new highs, and hoteliers were able to control costs helping
to push absolute net income levels to new highs. Luxury and Upper Upscale hotels continued to lead the surge in profit,
aided by steeper increases in ADR.”
On a same-store, PAR basis, total revenue growth of 5.4 percent outpaced the increases of departmental and operating
expenses, leading to a gross operating profit (GOP) increase of 9.0 percent. Operators continued to be successful in
controlling expenses. Departmental and undistributed operating expenses saw modest increases of 3.8 percent and 2.8
percent, respectively.
“While we are seeing record profits in total revenues, income as a percent of dollars is still a bit shy of what the industry
achieved in 2007,” said Carter Wilson, director of STR Analytics. “I expect 2014 will be the year we will finally break
2007 levels.”
Same-store hotels realized NOI increases of 10.0 percent in 2013. NOI does not include deductions for rent, amortization,
depreciation or debt service.
The property most likely to experience a profit decline in 2013 was an Upper Midscale hotel (39% of all Upper Midscale
hotels registered declines), while Luxury hotels were most likely to increase profit (89% of all Luxury hotels did).
Other highlights of this 2014 HOST Almanac:
• Full-service hotels reporting to HOST achieved an average occupancy of 71.8 percent and an ADR of US$172.32
in 2013.
• On average, full-service hotels generated US$271.78 in total revenue per-occupied-room (POR), up 5.4 percent
from 2012. Full-service, chain-affiliated hotels checked in at US$266.06 on a POR basis, while independent
properties reported US$335.58.
• Gross operating profit for full-service properties was US$25,220 on a PAR basis, up 9.8 percent from 2012.
• Overall in 2013, limited-service hotels reporting to HOST recorded an occupancy of 73.0 percent and an ADR of
US$100.66.
• Limited-service hotels reported a GOP of US$13,760 on a PAR basis, an increase of 6.0 percent from 2012.
HOST Almanac 2014
Page 4
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AN A LY TI C S
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The Hotel Transaction Almanac is the most comprehensive source
of hotel transaction statistics. STR Analytics combines their in-
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U.S. Hotel Transactions for the year 2013
AN A LY TI C S
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Transaction Almanac.
HOST Almanac
The definitive database of hotel revenue and expenses. The HOST
Almanac contains information by department, including detailed
rooms, food and beverage, marketing, utility costs, property and
HOST
Almanac
2014
maintenance, administrative and general, as well as select fixed
U.S. Hotel Operating Statistics for the year 2013
AN A LY TI C S
AN A LY TI C S
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For the year 2013
AN A LY TI C S
Hotel Development Almanac 2014
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Total U.S. Summary
Occupancy (of Sample)
Average Size of Property (Rooms)
Average Daily Rate
Total U.S.
Chain-Affiliated
Independent
Total U.S.
72.1%
199
$148.88
72.6%
199
$146.23
66.5%
199
$184.85
Same Store
Analysis
Ratioto-Sales
Per-AvailableRoom
Per-OccupiedRoom Night
Ratioto-Sales
Per-AvailableRoom
Per-OccupiedRoom Night
Rooms
68.6%
$39,043
$148.88
69.5%
$38,604
$146.23
Food
15.6
8,857
33.77
15.4
8,541
32.35
4.5
2,547
9.71
4.3
2,381
9.02
Other Food & Beverage
5.5
3,138
11.97
5.5
3,065
Telecommunications
0.4
230
0.88
0.4
234
Other Operated Departments
4.2
2,393
9.12
3.8
Rentals & Other Income
1.1
609
2.32
Cancellation Fee
0.1
77
0.29
100.0%
$56,895
$216.95
26.3%
$10,270
$39.16
68.5
9,962
37.99
173.5
399
1.52
48.0
Ratioto-Sales
Per-AvailableRoom
Per-OccupiedRoom Night
2013 Variance
from 2012
$44,484
$184.85
6.3%
17.4
12,773
53.08
3.3
6.3
4,613
19.17
5.8
11.61
5.5
4,046
16.81
5.6
0.89
0.2
181
0.75
(5.8)
2,111
8.00
8.0
5,887
24.46
2.7
1.0
550
2.08
1.8
1,338
5.56
(3.6)
0.1
74
0.28
0.2
121
0.50
11.4
100.0%
$55,560
$210.46
100.0
$73,444
$305.19
5.4%
26.0%
$10,024
$37.97
$13,316
$55.33
5.7%
68.0
9,516
36.05
72.2
15,480
64.33
3.0
170.5
399
1.51
221.4
401
1.66
1.0
52.0
(2.6)
REVENUE
Beverage
Total Revenue
60.6%
DEPARTMENTAL EXPENSES
Rooms
Food & Beverage
Telecommunications
29.9%
Other Operated Depts & Rentals
48.7
1,499
5.72
1,312
4.97
3,820
15.87
Total Departmental Expenses
38.9%
$22,130
$84.39
38.2%
$21,252
$80.50
45.0%
$33,017
$137.20
3.8%
Total Departmental Profit
61.1%
$34,765
$132.57
61.8%
$34,309
$129.96
55.0%
$40,427
$167.99
6.5%
Administrative & General
8.2%
$4,690
$17.89
8.2%
$4,546
$17.22
8.8%
$6,481
$26.93
2.7%
Marketing
6.9
3,903
14.88
7.0
3,884
14.71
5.6
4,136
17.19
3.6
Utility Costs
3.7
2,085
7.95
3.7
2,039
7.72
3.6
2,656
11.04
1.2
Property Operations & Maintenance
4.5
2,552
9.73
4.4
2,460
9.32
5.0
3,692
15.34
2.8
UNDISTRIBUTED OPERATING EXPENSES
Total Undistributed Operating Expenses
GROSS OPERATING PROFIT
23.3%
$13,230
$50.45
23.3%
$12,929
$48.97
23.1%
$16,965
$70.50
2.8%
37.9%
$21,535
$82.12
38.5%
$21,380
$80.99
31.9%
$23,462
$97.49
9.0%
Franchise Fees (Royalty)
1.1
618
2.35
1.2
664
2.51
0.1
46
0.19
8.2
Management Fees
2.5
1,419
5.41
2.5%
1,386
5.25
2.5%
1,832
7.61
6.5
34.3%
$19,499
$74.35
34.8%
$19,331
$73.22
29.4%
$21,584
$89.69
9.2%
Property Taxes
3.3%
$1,895
$7.23
3.3%
$1,857
$7.03
3.2%
$2,370
$9.85
4.7%
Insurance
1.2
670
2.55
1.1
637
2.41
1.5
1,073
4.46
5.8
Reserve for Capital Replacement
1.8
1,002
3.82
1.8
992
3.76
1.5
1,131
4.70
8.0
$15,932
$60.75
$15,845
$60.02
$17,010
$70.68
INCOME BEFORE FIXED CHARGES
Selected Fixed Charges
AMOUNT AVAILABLE FOR DEBT
SERVICE & OTHER FIXED CHARGES*
28.0%
28.5%
23.2%
NOTES: Ratio-to-Sales (RTS) based on Total Revenue, except Departmental Expenses. Per-Available-Room (PAR) based on total number of hotel rooms. Per-Occupied-Room night (POR) based on total number of occupied rooms.
10.0%
6