U.S. hotel industry profitability continued at a steady pace in July, as both total revenue per available room and gross operating profit per available room surpassed 2019 levels, with an index of 102% and 105% over July 2019, respectively.
For the U.S. top 25 markets, these metrics were slightly higher — at 103% and 108% of 2019 levels, respectively.
The stronger top 25 performance was driven by 13 markets that reported TRevPAR indexes over 100% for July, of which 11 also reported GOPPAR to be higher than in July 2019. As reported in previous months, the leading markets include Orange County and San Diego, California; Miami and Tampa, Florida. Given the weather conditions, it comes as no surprise that Orlando, with a TRevPAR index of 114%, has taken the “top-five seat” away from Phoenix, which now has a TRevPAR index of 104%.
With the steady return of group and business travel and being one of the main air travel hubs, Atlanta's hotel market reported TRevPAR and GOPPAR above 2019 levels, at 101% and 115%, respectively, in July. In previous months, the market had been in the bottom in terms of recovery in both metrics.
San Francisco and New York continue to report the lowest TrevPAR indexes, while San Francisco and Minneapolis reported the lowest GOPPAR indexes.
While Oahu used to lead in terms of actual GOPPAR, San Diego has taken the lead in July 2022, with GOPPAR of $214, up from $156 in July 2019. The market also has taken the lead in terms on GOP margin at 48%. Previously close to average among the top 25 markets, Orange County has broken away from the pack in July, recording the third-highest GOPPAR at $157, up from $114 in 2019.
Nashville, despite being more middle-of-the-pack in terms of GOPPAR at $80, reported the second-highest GOP margin for July at 47%, only 1 percentage point behind the leader. Another relevant improvement came from Miami, as it used to be among bottom performers in terms of GOPPAR and margin, but as of July 2022 has increased GOPPAR to $95 from $41, and GOP margin to 22% from 20%.