Thursday, December 9, 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 like- GOPPAR: US$62.75, TRevPAR: US$165.03, EBITDA PAR: US$44.14, and LPAR (Labor Costs): US$52.17.
Estimated industrywide gross operating profit was 89% of 2019 comparable, after coming in at 97% when using the same index comparison in September. Labor costs reached 91% of pre-pandemic comparables in October after reaching a high of 96% in September.
October data was important to analyze from multiple angles said Raquel Ortiz, STR’s assistant director of financial performance. The metrics were up quite a bit from September if you measure by available rooms, but that’s to be expected as October is usually a stronger revenue month due to conferences and group travel.
If we extrapolate and bring in the comparison to pre-pandemic times, performance was lower. Fortunately, even with the less corporate business this year, profit margins (38%) still came relatively close to what we saw in 2019 (40.9%).
Among major markets, Miami’s October year-to-date GOPPAR level surpassed the comparable 2019 level, while San Francisco moved into positive GOPPAR territory when averaging the first 10 months of the year.
Tags: October, Omicron, pandemic, U.S., u.s. hotel
Thursday, March 23, 2023
