U.S. hotel profitability hit double figures for the first time since February, and year-over-year comparisons improved slightly from the previous month, according to STR‘s October monthly P&L data release.
In a year-over-year comparison with October 2019, the industry reported the following:
- GOPPAR: -88.3% to US$12.69
- TRevPAR: -72.2% to US$70.96
- EBITDA PAR: -103.8% to US$-3.24
- LPAR (Labor Costs): -61.1% to US$31.28
The industry’s GOPPAR was in single digits for the previous three months, including a level of US$8.14 in September.
“There were positives in the profitability data even as occupancy flattened and the extension of the summer leisure lift came to an end,” said Audrey Kallman, operations analyst at STR. “GOP margin increased six percentage points from September, and certain location types reported encouraging data—GOPPAR for airport hotels was nearly three times higher than the previous month, and interstate properties drew close to pre-pandemic levels.
“On the negative side, a lack of group business continued to stand out with Upper Upscale hotels showing the lowest GOPPAR among the classes. October is usually a strong month for conferences and events, but without those significant demand generators, GOPPAR for Upper Upscale properties came in more than $100 lower than this time last year.”
Full, complimentary October profitability slides are available HERE. Industry stakeholders interested in Monthly P&L participation should contact [email protected]. Those interested in subscribing to soon-to-be released reports should contact their account manager or [email protected].
Key profitability metrics:
TRevPAR – Total revenue per available room
GOPPAR – Gross operating profit per available room
EBITDA – Earnings before interest, income tax, depreciation, and amortization
LPAR – Total labor costs per available room