AH&LA Releases 2005 Lodging Industry Profile | Industry’s Pre-Tax Profits Advance to $16.7 Billion

Washington, As predicted by industry experts, the U.S. lodging industry has begun a return to profitability in 2004, based on the American Hotel & Lodging Association’s (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for year-end 2004.

According to the LIP, the lodging industry’s overall profitability grossed $113.7 billion in total sales—compared to $105.3 billion in 2003. In addition, pretax profits increased to $16.7 billion, up from $12.8 billion in 2003. This increase can be attributed to a variety of sources, including the industry’s ability to raise room rates due to an increase in demand from both leisure and business travelers. The LIP’s other indicators — promotional spending, average occupancy rate, and revenue per available room — also point to a stronger lodging industry performance ahead.

Other facts found in the LIP:

• There are 47,598 properties consisting of 4.4 million rooms.
• The lodging industry directly supports more than 7.3 million jobs.
• The tourism industry is currently the third largest retail industry, behind automotive and food stores. In 30 states, tourism ranks as the first, second, or third largest employer.
• Tourism generated $600 billion in domestic sales.

The LIP provides a quick list of significant facts about the lodging, travel, and tourism industries, including employment impact; international travel statistics; and property and room breakdowns by location, rate, and size. A complimentary copy of the 2005 AH&LA Lodging Industry Profile is available on the AH&LA Web site, www.ahla.com. Figures for year-end 2005 will be available in mid-2006.

Information contained in the LIP is based on data provided by the American Economics Group, Inc.; D.K. Shifflet & Associates, Ltd.; Smith Travel Research; the Travel Industry Association of America; and the U.S. Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries; and the U.S. Bureau of Labor Statistics.

2005 US Lodging Industry Profile (LIP) According to the LIP, the lodging industry’s overall profitability grossed $113.7 billion in total sales—compared to $105.3 billion in 2003. In addition, pretax profits increased to $16.7 billion, u... Adobe PDF Document (Download Acrobat Reader) File Size: 1170 Kb - Monday, 07 November 2005