U.S. Lodging Industry Sees Rise in Profitability

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Despite the fragile global economy, U.S. hoteliers turned in a profitable year in 2011.

In fact, the U.S. lodging industry posted a strong $21.6 billion pre-tax profit in 2011, a 20 percent gain in pre-tax profits over the previous year's $18 billion. Last year's growth was based on sales of $137.5 billion, a 7.6 percent rise from 2010 revenue of $127.7 billion.

The AH&LA's "Lodging Industry Profile," an annual statistical analysis of the industry, shows the $137.5 billion in sales for 2011 contributed to an overall $813 billion in tourism sales, excluding airline expenditures by international travelers. To put that economic impact in a different perspective, AH&LA says America's lodging industry contributed $2.2 billion per day in U.S. travel expenditures.

Another positive sign in 2011 travel was America experienced a 4 percent jump in international visitors to 63.2 million - up from 59.7 million in 2010. Meanwhile, the number of arrivals from overseas travelers increased 6 percent to a record 27.9 million.

Following are the top 10 countries in terms of U.S. arrivals for 2011: Canada (21 million); Mexico (13.4 million); United Kingdom (3.8 million); Japan (3.2 million); Germany (1.8 million); France (1.5 million); Brazil (1.5 million); South Korea (1.1 million);  China (1.1 million), and Australia (1 million).

These 10 countries accounted for 80 percent of U.S. international visitors, according to AH&LA data.

"After a long economic downturn, in 2011, the lodging industry turned the corner," said AH&LA President/CEO Joe McInerney.  "As occupancy hit 60 percent, we're starting to see an overall rate increase, which bodes well for 2012."

Another interesting fact from the AH&LA study of 52,214 U.S. hotels is the travel and tourism industry pays $194.6 billion in travel-related wages and salaries and employs 1.8 million hotel property workers.

According to AH&LA, their annual lodging industry profile is based on 2011 data provided by several organizations, including the U.S. Travel Association, Bureau of Labor Statistics, STR, D.K. Shifflet & Associates, Ltd., U.S. Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries, Bureau of Economic Analysis, Statistics Canada; and Banco de Mexico.

Headquartered in Washington, D.C., AH&LA is the sole national association representing all sectors and stakeholders in the lodging industry, including individual hotel property members, hotel companies, student and faculty members, and industry suppliers.