CBRE shared an update on the latest industry key performance indicators through February. Among the major takeaways:
- Growth in revenue per available room for February was negative for the third straight month, down 1.5 percent. A 0.4 percent increase in average daily rate did not offset a 1.9 percent decrease in occupancy, which was driven in part by a 1.3 percent drop in demand. Historically, declines in demand have preceded declines in ADR potentially foreshadowing a further headwind to RevPAR going forward.
- Resorts were the only segment to register RevPAR gains for the month, outperforming all other location types, up 0.9 percent year over year in February.
- The luxury and upper-upscale segments posted the only positive chain scale performance during the month, up 2.7 percent and 2.0 percent year-over-year, respectively.
- Elevated costs meant total revenue growth failed to translate into profits. January’s total revenue growth of 3.0 percent failed to offset the 220-basis point contraction in margins, causing a 5.7 percent decrease in GOP dollars as labor costs from rising wages continued to pressure operating profit.