Back To Press Releases

U.S. hotel profitability hits pandemic high

Comments 0

BROOMFIELD, Colorado—U.S. hotel gross operating profit per available room (GOPPAR) reached its highest absolute level since February 2020, according to STR‘s February 2021 monthly P&L data release.

GOPPAR had come in no higher than US$12.69 for any month since the pandemic’s initial impact on industry performance last March. In addition to improved absolute levels in the profitability metrics, year-over-year comparisons were less steep.

  • GOPPAR: US$17.35 (-83.3%)
  • TRevPAR: US$85.11 (-67.4%)
  • EBITDA PAR: US$0.14 (-99.8%)
  • LPAR (Labor Costs): US$34.26 (-60.2%)

“Year-over-year percentage changes will turn positive in future P&L data releases due to comparison with pandemic low months last year,” said Raquel Ortiz, STR’s assistant director of financial performance. “Additionally, the industry’s top-line metrics have been trending at their highest levels in more than a year, as shown in our recent weekly data releases for March, and the uptick should extend to the bottom line as properties generate more room revenue while still maintaining operational efficiencies developed this last year. Roughly 50% occupancy is the still the general break-even point for turning a profit, but only 44% of properties reached positive GOP territory in February—the percentage was lower on a net income level. With most of the demand in the marketplace being leisure-driven, the major markets, most dependent on business and group demand, continue to struggle the most even with some improvement last month.”

Markets chartBreakeven chart

Industry stakeholders interested in Monthly P&L participation should contact MonthlyPnL@STR.com. Those interested in subscribing to reports should contact their account manager or info@STR.com.

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 global hospitality sectors. 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.

North America Media Contact
Haley Luther
Communications Manager
hluther@str.com
+1 (615) 824-8664 ext. 3500

General Media Inbox:
media@str.com

0 Comments