U.S. Hotel Profitability
U.S. Hotel Profitability Gains Led by Full-Service Chains, Major Markets
CoStar Group | February 2, 2024
WASHINGTON – 2 February 2024 – Improvement in group business, especially across the Top 25 Markets and upper-upscale chains, drove growth in U.S. hotel revenues and profits, according to 2023 P&L data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. 2023 per-available-room metrics (% change from 2022) GOPPAR: US$75.83 (+8.2%) TRevPAR: US$211.49 (+9.6%) EBITDA PAR: US$53.05 (+7.6%) LPAR (Labor Costs): US$71.56 (+13.2%) “Total industry revenues and profits were well beyond 2022 levels as pricing power continued to outweigh the impac...
Major Markets Driving U.S. Hotel Profitability Gains
CoStar Group | December 6, 2023
WASHINGTON – 6 December 2023 – Improvement in group demand across the Top 25 Markets drove U.S. hotel revenue and profit growth, according to October P&L data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. October 2023 per-available-room metrics (% change from October 2022) GOPPAR: US$97.45 (+3.7%) TRevPAR: US$240.74 (+4.0%) EBITDA PAR: US$69.60 (-1.2%) LPAR (Labor Costs): US$74.48 (+5.9%) The industry saw its largest year-over-year increases in GOPPAR and TRevPAR since March 2023. “The Top 25 Markets have showed an...
U.S. Hotel Profitability Slowed in July but Outpaced 2019 Levels for Fourth Consecutive Month
STR | September 6, 2022
HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) once again exceeded the pre-pandemic comparable, but came in lower than the month prior, according to STR‘s July 2022 P&L data release. GOPPAR: US$78.30 TRevPAR: US$209.66 EBITDA PAR: US$55.29 LPAR (Labor Costs): US$67.27 “While each of the key bottom-line metrics decreased slightly from June on a per-available-room basis, total profits increased with peak summer room demand and revenues,” said Raquel Ortiz, STR’s director of financial performance. “Profit margins were stronger than July 2019 for both full- and...
U.S. Hotel Profitability Lower in May but Above 2019 Levels for Third Consecutive Month
STR | July 6, 2022
HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) fell from the previous month, but surpassed the pre-pandemic comparable for a third consecutive month, according to STR‘s May 2022 P&L data release. GOPPAR: US$88.63 TRevPAR: US$219.58 EBITDA PAR: US$67.80 LPAR (Labor Costs): US$66.27 The EBITDA PAR level was also down from April. “After the top-line metrics showed mixed results in May, it wasn’t a surprise that the bottom-line metrics came in a bit lower,” said Raquel Ortiz, STR’s director of financial performance. “Regardless, each of the four key P&...
U.S. Hotel Profitability Reached 28-Month High in March
STR | May 2, 2022
HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) reached its highest level since November 2019, according to STR‘s March 2022 P&L data release. The GOPPAR level was less than $10 shy of reaching the pre-pandemic comparable from March 2019. GOPPAR: US$83.81 TRevPAR: US$204.84 EBITDA PAR: US$62.68 LPAR (Labor Costs): US$61.45 EBITDA PAR was the industry’s highest since November 2019, while TrevPAR and LPAR were the highest since March 2020. “Aligned with jumps in top-line performance that have continued into April, each of the bottom-line metrics showed dras...
U.S. Hotel Profitability Back on the Rise After Omicron-Induced Dip
STR | April 5, 2022
HENDERSONVILLE, Tennessee — April 5, 2022 — After falling to roughly US$20.00 in January, gross operating profit for U.S. hotels reached nearly US$59.00 – the highest level in the metric since October 2021, according to STR‘s February 2022 P&L data release. All of the key performance metrics increased from January, after concerns around Omicron pushed levels lower. GOPPAR: US$58.88 TRevPAR: US$169.77 EBITDA PAR: US$39.29 LPAR (Labor Costs): US$56.63 “Following trends in top-line performance, U.S. profitability levels are recovering more quickly from Omicron than with previous variants,” said Ra...
Recovery of U.S. Hotel Profitability Stalled in October
STR | December 6, 2021
HENDERSONVILLE, Tennessee — December 4, 2021 — U.S. hotel profitability increased from the previous month on a per-available-room basis but was down when indexed to 2019, according to STR‘s October 2021 monthly P&L data release. All of the key profitability metrics increased from September as October is historically a higher revenue month. GOPPAR: US$62.75 TRevPAR: US$165.03 EBITDA PAR: US$44.14 LPAR (Labor Costs): US$52.17 Estimated industrywide gross operating profit was 89% of the 2019 comparable, after coming in at 97% when using the same index comparison in September. Labor costs reached 91% of p...
Labor Costs Brought U.S. Hotel Profitability Down Further in September
STR | November 2, 2021
HENDERSONVILLE, Tennessee — November 2, 2021 — Increased spending on labor created lower gross operating profit for U.S. hotels, according to STR‘s September 2021 monthly P&L data release. Estimated labor costs came in at 96% of the comparable level from 2019, which was the highest index of the pandemic-era. All the key profitability metrics fell from August. GOPPAR: US$46.29 TRevPAR: US$140.94 EBITDA PAR: US$30.47 LPAR (Labor Costs): US$47.50 “Higher labor margins meant less room for profits, and the GOP margin fell for the second consecutive month to 33%,” said Raquel Ortiz, STR’s assistant dire...
