Connecting Revenue and Profitability: Flow Through and Flex Explained
Hoteliers track numerous metrics to understand the health of their properties in both the short and long term. Top-line revenue metrics are foundational to understanding hotel performance—but they’re only the beginning. When those metrics shift, the question isn’t just what changed, but how those changes ultimately impact profitability.
Two metrics help answer that question: Flow Through and Flex.
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Southern Europe hotel performance update
Southern Europe hotel performance updateAnalysis by Christina Choueifaty and Kelsey Fenerty
The Southern European hospitality market experienced yet another year of high performance. In 2024, regional RevPAR increased 9.8% year over year as the allure of beaches and historic cities attracted leisure travelers from around the globe. This robust demand lifted average daily rate (ADR) 8% to EUR175 – the highest regional rate in Europe for the year.
STR/TE Market Forecast Assumptions – February 2025 (U.S.)
STR/TE Market Forecast Assumptions – February 2025 (U.S.)Market Forecasts, produced by STR and Tourism Economics, provide you with the insights needed to anticipate future performance.
U.S.
The top-line U.S. RevPAR forecast is unchanged from our previous revision, with 1.8% growth forecasted for 2025. While top-line growth remains the same, increases have been rebalanced across segments.
Asia Pacific hotel performance update
Asia Pacific hotel performance updateAnalysis by Chris Klauda and Claudia Alvarado Cruz
Note: Beginning with this January 2025 version, monthly “bubble chart” updates will reflect a more granular, regional focus on performance. Each month will focus on a different world region with more analysis as opposed to the global view from previous years.
New Orleans Super Bowl: Hotel Performance Forecast
New Orleans Super Bowl: Hotel Performance ForecastBy Raquel Ortiz
New Orleans is set to host Super Bowl LIX between the Kansas City Chiefs and the Philadelphia Eagles, and the market’s hotels are heading toward full occupancy around the big game on 9 February 2025.
U.S. hotel commentary - December 2024
U.S. hotel commentary - December 2024Analysis by Chris Klauda
Analysis: 2025 California wildfire impact on hotel performance
Analysis: 2025 California wildfire impact on hotel performanceThe devastating wildfires in Los Angeles appear to have had limited impact on hotel performance as of the week ending 11 January 2025. Market demand surged Tuesday through Thursday (7-9 January), which were peak evacuation days, but dissipated over the weekend (Friday & Saturday).
Occupancy over the three weekdays increased 13.9 percentage points (ppts) year over year. Weekend occupancy declined 5ppts, which was slightly larger than the decrease on Sunday and Monday (-3.5ppts).
U.S. hotel commentary - November 2024
U.S. hotel commentary - November 2024Analysis by Chris Klauda
The end of an Era(s Tour): Taylor Swift’s final impact on hotel performance
The end of an Era(s Tour): Taylor Swift’s final impact on hotel performanceAnalysis by Audrey Kallman
Taylor Swift said, “so long, London,” and made her way back to North America for her final leg of the Eras Tour.
The conclusion ended with 18 shows – split evenly between U.S. and Canadian markets.
U.S. hotel conversion activity remains muted
U.S. hotel conversion activity remains mutedAnalysis by Isaac Collazo
U.S. hotel conversion activity, which involves changing an existing hotel from its independent status, or affiliating it with a new brand; continues to trend below the long-term average of the 20-year period ending 2019. We are benchmarking to this period given that it excludes the disruption in hotel development brought about by the pandemic
Hotel F&B driving labor cost growth in 2024
Hotel F&B driving labor cost growth in 2024Analysis by Audrey Kallman
In the U.S., it costs about $9 more to staff a hotel room than in 2023.