U.S. Hotel Profits Up 13.1 Percent in 2006-Positive News for Luxury Vacation Rentals
Nov. 28, 2006. According to a Study by PKF Hospitality Research, The U.S. lodging industry continues to benefit from double-digit profit growth in 2006. Their report indicates the gross operating profit (GOP) for the typical U.S. hotel increased 13.1 percent from the first half of 2005 to the first half of 2006.
PKF reports that due to the strength of the economy, U.S. hotels posted healthy increases in occupancy and room rates during the first half of 2006. However, we have noticed that reports in Smith Travel Research have shown a slight drop in occupancy is the most recent weeks and months.
Nevertheless, the overall results for the year have been quite positive, especially when on e considers the run-up in gas prices during the first part of the year. Why these reports deal with hotel lodging, they have quite an impact of the luxury vacation rental industry. IT MEANS THAT THE VACATION TRAVEL MARKET IS STILL STRONG—STRONG ENOUGH TO WITHSTAND THE ENERGY SHOCK AND THE SHOCK OF HOTEL ROOM RATES THAT IN MANY CASES WENT UP BY DOUBLE DIGIT NUMBERS.
For the owners of luxury vacation rentals who are willing to provide many of the amenities of first class hotels, this should have been a very good year. it has been an opportunity to provide better value that the high price hotels and maintain a good rate of occupoancy.
