Login

STR: US Hotel Profitability Surpassed 2019 Levels for Second Consecutive Month

Gross Operating Profit Margins Show Improvement
An employee works inside the kitchen at the New York Marriott Marquis in New York, U.S., on Tuesday, Nov 9, 2021. Marriott International Inc., which has more than 7,900 hotels around the world, is adding the Ritz-Carlton Yacht Collection to its loyalty program.  Photographer: Jeenah Moon/Bloomberg via Getty Images (Bloomberg via Getty Images)
An employee works inside the kitchen at the New York Marriott Marquis in New York, U.S., on Tuesday, Nov 9, 2021. Marriott International Inc., which has more than 7,900 hotels around the world, is adding the Ritz-Carlton Yacht Collection to its loyalty program.  Photographer: Jeenah Moon/Bloomberg via Getty Images (Bloomberg via Getty Images)
By HNN Newswire
June 2, 2022 | 2:00 P.M.

U.S. hotel gross operating profit per available room (GOPPAR) exceeded the pre-pandemic comparable for a second consecutive month, according to STR‘s April 2022 P&L data release.

The GOPPAR, TrevPAR and EBITDA PAR levels were the highest for the country since November 2019.

  • GOPPAR: $90.96
  • TRevPAR: $218.40
  • EBITDA PAR: $68.37
  • LPAR (Labor Costs): $64.22

“As the top-line metrics continue to progress toward full recovery, it is no surprise that the bottom-line metrics are coming in better than pre-pandemic times,” said Raquel Ortiz, STR’s director of financial performance. “GOPPAR and GOP margins continue to show incremental improvements month over month, with the GOP margin (41.6%) at its third-highest level on record and the highest since November 2018. F&B profits were up slightly from April 2019, mostly due to lower group demand lowering the cost of spend on F&B as well as the influences of inflation. Labor costs, on the other hand, remain slightly under the 2019 comparable due to lower employment levels and less available amenities.”

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

“Miami continues to lead in both GOPPAR and TrevPAR recovery, hitting 178% of 2019 GOPPAR. On the other hand, San Francisco and Minneapolis remain near the bottom in both metrics. The GOPPAR level for the Top 25 Markets combined was the highest of the pandemic and only $12 less than April 2019,” Ortiz said.

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.

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.

The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editorial Director Stephanie Ricca at sricca@hotelnewsnow.com.

Return to the Hotel News Now homepage.