U.S. Lodging Industry Keeps Up Strong Pace

The U.S. lodging industry recorded its best year ever in 2006, posting pretax profits of $26.6 billion, up from $22.6 billion in 2005, based on the American Hotel & Lodging Association (AH&LA) Lodging Industry Profile (LIP), a statistical analysis of the lodging industry for yearend 2006.

The lodging industry’s overall profitability grossed $133.4 billion in total sales -compared to $122.7 billion in 2005. 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 strong lodging industry performance in the future.

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.