Home Hospitality U.S. hotel profitability slowed in July but outpaced 2019 levels for fourth...

U.S. hotel profitability slowed in July but outpaced 2019 levels for fourth consecutive month

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 limited-service hotels, but GOP margins were at lower levels than the previous four months. The dip in margins can be attributed to higher expenses associated with more ramped-up operations as well as the general rise in costs around the country. Rising wages are being somewhat balanced by hotels using more contract labor and reducing benefits costs.”

Source: STR

Eleven of the major markets realized both GOPPAR and TrevPAR levels higher than 2019 comparables.

“Leisure-heavy markets, such as Miami, continue to lead the way in both GOPPAR and TrevPAR recovery. The third highest GOPPAR index was seen in Chicago, which is typically a more business-reliant market. Other business-centric markets, however, still have ways to go in terms of recovery. San Francisco’s GOPPAR was just 55% of July 2019 levels, while Minneapolis was the second lowest at 77% of the pre-pandemic comparable,” Ortiz said.

Source: STR

Industry stakeholders interested in Monthly P&L participation should contact [email protected]. Those interested in subscribing to 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

About STR

STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.

Haley Luther
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+1 615 824 8664 ext. 3500

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