Labor costs kept U.S. hotel GOPPAR down in June

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 three times the rate of total revenue,” said Raquel Ortiz, STR’s director of financial performance. “That increase, tied with higher growth in other expense types, caused a profit decline from last June. Despite the year-over-year decline, the GOPPAR level was improved from May, and with cooling inflation, real GOPPAR and TRevPAR were up month over month for the first time since March.”

Thirteen of the Top 25 Markets saw GOPPAR levels below June 2022, with San Francisco showing the lowest index (at 52% of 2022 levels). Las Vegas was the only other market to report a GOPPAR index below 80% (at 68% of 2022 levels).

“Year to date through June, the Top 25 Markets were still $2 behind 2022 in GOPPAR and three percentage points behind the previous year’s GOP margin,” Ortiz said. “These major markets still have some ground to cover as the year progresses.”

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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

Additional Performance Data
CoStar’s world-leading hotel performance sample comprises 78,000 properties and 10.3 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.

News Media Contact
Haley Luther
Communications Manager – STR
(216) 278-0627
hluther@str.com

About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract nearly 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.