The hotel and hospitality industry is one of the few industries in the world that are seemingly outperforming the other ones, as well as the overall GDP as a whole. What we mean is, this particular industry has been showing a more impressive growth than the GDP in most countries, especially some of the developed ones.
How is the industry doing?
As far as the figures are concerned, the global hotel industry alone is expected to generate a staggering $550 billion in revenue in the coming year. This is saying something, given the economic slowdown heat most of the other industries are deal with.
However, the British company, InterContinental Hotels Group having hotel chains in different parts of the world, seems to be contributing the most to these huge revenue figures. In fact, in 2013, it achieved surprising revenue figures of around $21.6 billion, and had more than 4,600 hotels worldwide at that time.
Some of the other major industry giants include Hilton Worldwide and Marriott International, boasting of owning around 4,000 and 3,700 hotels respectively, which are spread throughout the world.
Measuring the performance
As far as measuring the performance of the industry is concerned, there are three major indicators. They are:
- The occupancy rate
- Revenue per room (RevPAR)
- Average daily rate (ADR)
In last year, an analysis of the global hotel industry was done on the basis of these three indicators. The results revealed that the Asia Pacific region boasts of the highest occupancy rate of around 69 percent, while the Middle East and Africa top the charts when it comes to the ADR and RevPAR, respectively.
Hotel industry in the US
Coming to the US, despite having a surprisingly low occupancy rate of just around 50.5 percent in 2013, the hotel industry in the country posted impressive revenue figures of around $163 billion. It seemingly showed further improvement in the following year, when the ADR estimates were raised to a staggering $115.
Santa Monica being a major contributor
One of the major contributors to such surprising figures seem to be Santa Monica, which attracted around 7.3 million tourists in the last year, with the average daily spent of the hotel visitors being around $350 a day. Hotels in the city also generated a combined $45.5 million in Transient Occupancy Taxes (TOT), helping the city improve its General Fund status last year.
The city was also voted as one of the top ten beach cities of the world, thus attracting way more visitors than it used to. The hotel and hospitality industry in the city obviously turned out to one of the biggest gainers.
A final word
The industry overall has also been performing pretty well, not only in the United States, but throughout the world. Currently, the global hotel industry posts revenue of around $400 to $500 billion every year, with one third of the figure coming only from the US.