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AH&LA Releases 2006 Lodging Industry Profile

Industry’s Pre-Tax Profits Advance to $22.6 Billion

Washington | As predicted by industry experts, the U.S. lodging industry recorded its best year ever in 2005, posting pretax profits of $22.6 billion, up from $16.7 billion in 2003, based on the American Hotel & Lodging Association’s (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for year-end 2005.

AH&LA

Washington | As predicted by industry experts, the U.S. lodging industry recorded its best year ever in 2005, posting pretax profits of $22.6 billion, up from $16.7 billion in 2003, based on the American Hotel & Lodging Association’s (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for year-end 2005.

The lodging industry’s overall profitability grossed $122.7 billion in total sales—compared to $113.7 billion in 2004. This increase is 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 47,590 properties consisting of 4.4 million guestrooms.
  • The lodging industry directly supports more than 7.5 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 $654 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 2006 AH&LA Lodging Industry Profile is available on the AH&LA Website, www.ahla.com. Figures for year-end 2006 will be available in fall 2007.

Information contained in the LIP is based on data provided by 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.

Serving the hospitality industry for nearly a century, 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. Headquartered in Washington, D.C., AH&LA provides members with national advocacy on Capitol Hill, public relations and image management, education, research and information, and other value-added services to provide bottom-line savings and ensure a positive business climate for the lodging industry. Partner state associations provide local representation and additional cost-saving benefits to members.

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The American Hotel & Lodging Association (AHLA) is the largest hotel association in America, representing more than 30,000 members from all segments of the industry nationwide – including iconic global brands, 80 percent of all franchised hotels and the 16 largest hotel companies in the U.S. Headquartered in Washington, D.C., AHLA focuses on strategic advocacy, communications support, and workforce development programs to move the industry...