goppar
Labor Costs Kept U.S. Hotel GOPPAR Down in June
Costar Group | August 4, 2023
Labor costs reached highest growth rate of pandemic-era WASHINGTON – 4 August 2023 – U.S. hotel gross operating profit per available room (GOPPAR) fell year over year for a second consecutive month, according to CoStar’s June 2023 P&L data release. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. June 2023 per-available-room metrics (% change from June 2022) GOPPAR: US$91.37 (-1.4%) TRevPAR: US$237.12 (+4.8%) EBITDA PAR: US$66.78 (-5.6%) LPAR (Labor Costs): US$75.48 (+13.4%) “Labor costs continued to rise year over year, growing nearly th...
Global Hotel Industry Faces Mixed Fortunes Amid Rising Costs and Varied Demand
HotStats | August 3, 2023
The global hotel industry is experiencing mixed fortunes as it navigates the post-pandemic landscape. In the United States, the Gross Operating Profit (GOP) margin has seen a year-on-year (YOY) decline of three percentage points (ppt), primarily due to a three ppt increase in total labor cost margin and a 0.5 ppt rise in utilities cost margin. This has led to a 1% ($1.25) YOY drop in Gross Operating Profit Per Available Room (GOPPAR). Undistributed expenses, including Sales and Administration & General (A&G) expenses, have surged by 12.9% YOY, reversing the savings made in these areas during the pandemic. Specific cost items such a...
Key Middle East Markets Show Mixed Profitability in May
STR | July 10, 2023
LONDON— Among key hotel markets in Middle East & Africa, Jordan and Qatar realized the only month-over-month gross operating profit per available room (GOPPAR) improvements, according to STR’s May 2023 P&L data release. Jordan’s GOPPAR level reached US$66.77 in May, showing a significant month-over-month increase (+34.1%). That level was 106% of what was seen in May 2022, but was down from the 369% index reported in April. Qatar reached a GOPPAR of US$37.95, down 20.9% year over year. The market, however, saw a month-over-month jump of 39.0% and was one of the only markets to show an improvement in the i...
U.S. Hotel GOPPAR Declined in May
STR | July 6, 2023
HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) fell from the previous month, according to STR‘s May 2023 P&L data release. May 2023 per-available-room metrics (% change from May 2022) GOPPAR: US$83.86 (-2.6%) TRevPAR: US$222.78 (+4.1%) EBITDA PAR: US$61.16 (-7.1%) LPAR (Labor Costs): US$72.82 (+13.6%) “Weak revenue growth tied with strong labor costs caused GOPPAR to decline year over year for the first time in 16 months,” said Raquel Ortiz, STR’s director of financial performance. “The increase in labor costs was nearly three times that of revenue, but ...
Key Asia Pacific Hotel Markets Surpassed 2019 Profitability Levels in March
STR | May 5, 2023
LONDON—Further supporting recovery around the region, a majority of Asia Pacific’s key hotel markets surpassed their 2019 levels in gross operating profit per available room (GOPPAR), according to STR’s March 2023 P&L data release. Bali’s March GOPPAR reached US$52.92, which was 227.6% of the pre-pandemic comparable. In February, the market reported GOPPAR at US$41.90, which was 121% of the 2019 level. New Delhi followed with a GOPPAR of US$82.40, which was 164.4% of the 2019 comparable. The GOPPAR level was slightly lower than February (US$101.71). While improved over February, Hong Kong’s GOPPAR was just 76....
Europe’s Key Hotel Markets Showed Improved Profitability in February
STR | April 6, 2023
LONDON—Europe’s key hotel markets reported month-over-month improvement in gross operating profit per available room (GOPPAR), according to STR’s February 2023 P&L data release. London’s February GOPPAR reached US$65.55, which was 83% of the pre-pandemic comparable. In January, the market reported GOPPAR at US$42.06, which was 65% of the 2019 level. Amsterdam followed with a GOPPAR of US$35.98, which was 74% of the 2019 comparable after reaching just 7% in January when using the same comparison. Berlin’s GOPPAR was 21% of the 2019 comparable, showing a significant month-over-month lift from negative levels in...
U.S. Hotel GOPPAR Highest Since October 2022
STR | April 5, 2023
HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) exceeded the pre-pandemic comparable and was the highest since October 2022, according to STR‘s February 2023 P&L data release. EBITDA was the only key bottom-line metric on a per-available-room basis to come in lower than February 2019. GOPPAR: US$77.37 (+1.6%) TRevPAR: US$217.20 (+3.7%) EBITDA PAR: US$51.63 (-0.6%) LPAR (Labor Costs): US$73.70 (+2.9%) “The profit-and-loss metrics followed typical industry trends, improving from the prior month,” said Raquel Ortiz, STR’s director of financial performance. “Bo...
It’s Time to Re-Evaluate Hotel Performance Metrics, Says HVS
HVS | March 7, 2023
07 March 2023, London: Hotel operators need to learn to manage the entire building they operate and start thinking of performance in terms of the total revenue or profit per available square metre, giving a more accurate assessment of the property’s success. This is the conclusion of a new report from global hotel consultancy HVS, which considers the limitations of various hotel performance indices used in the hotel sector as a benchmark for hotel investment, for property valuations and for analysing operating success. The most widely used performance index is Rooms Revenue per Available Room [RevPAR] which, HVS says, can be a usef...
