The most profitable limited- and full-service hotels averaged lower average daily rates but higher year-end occupancies. During the past few years, demand has recovered from the previous peak of 2007 at a faster rate than ADR. As demand continues to break records and ADR plays catch-up in the markets where it has yet to reach previous peak levels, we expect this to have a positive impact on overall U.S. hotel industry profitability. Based on more than 3,000 limited-service hotel profit and loss statements for year-end 2012, chain-affiliated hotels made up a larger share of the top 10% of performers. Chains made up nearly 10% more of the top 10% of full-service hotels. With demand expected to continue growing, albeit at a decelerated rate, and ADR to continue catching up to previous peaks, we expect to see departmental and overall profitability increase during the coming years. Especially as occupancy rates rise and economy of scale sets in, we should also see some departmental expense ratios decrease, helping the bottom line. Get the full story at Hotel News Now