gross operating profit per available room
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 ...
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...
U.S. Hotel Profitability Improved in September; Labor Costs Exceed 2019
STR | November 1, 2022
HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) improved from the month prior and exceeded the pre-pandemic comparable, according to STR’s September 2022 P&L data release. Additionally, the cost of labor per available room came in higher than the pre-pandemic comparable for the first time. GOPPAR: US$84.03 TRevPAR: US$222.97 EBITDA PAR: US$60.71 LPAR (Labor Costs): US$71.52 “Labor costs moved ahead the 2019 comparable due to continued high levels of hospitality unemployment and more spending on contract labor,” said Raquel Ortiz, STR’s director of financial ...
4 Reasons GOPPAR Should Be on Your List of KPIs
HotStats | November 30, 2020
With the pandemic still raging and hotel operations still in flux, hoteliers are still left figuring out what to do next. Churning out profit in the age of COVID is a Herculean task, but consulting the right data can be a step in the right direction. Unfortunately, if you’re relying solely on narrow KPIs such as RevPAR to craft your hotel performance plan, you might as well be building a house of cards. It’s bound to collapse when the slightest breeze picks up. Looking for a hotel KPI that’s guaranteed to support a stronger hotel performance plan? Try gross operating profit per available room (GOPPAR) on for size. Sure, the top li...
