US hotel profit improved to 70% from 2019 level, stable workforce
BROOMFIELD, Colorado – U.S. hotel gross operating profit reached 70% of comparable 2019 level, according to STR’s monthly P&L data from May 2021. As demand, revenues and GDP continue to rise, spending continues to grow. -of work remained stable compared to the previous month at 64%.
- GOPPAR: US $ 37.30
- TRevPAR: 102.52 USD
- BY EBITDA: $ 22.54
- LPAR (labor costs): US $ 30.96
“May was another step forward, as a more economical reopening and increased demand pushed the profitability of the entire sector upwards”, said Raquel Ortiz, associate director of financial performance at STR. âOverall, 95% of hotels have reached the breakeven point on the basis of GOP, while 73% have reached the breakeven point on the basis of net income. For context, these percentages were 98% and 85% in May 2019, so although the improvement is encouraging, many hotels are still experiencing financial difficulties, and even more are seeing staff issues as evidenced by the stagnation rate. labor costs.
âMany of the properties that are still experiencing significant difficulties are those of the major metros. These markets eventually each reached positive GOPPAR territory, with warm weather and beach markets like Miami, Phoenix, LA and San Diego performing the best. “
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Key profitability indicators:
- TRevPAR – Total revenue per available room
- GOPPAR – Gross operating income per available room
- EBITDA – Earnings before interest, income taxes, depreciation and amortization
- LPAR – Total labor costs per available room
STR provides benchmarking data, analysis and high-end market insights for the global hospitality industries. Founded in 1985, STR is present in 15 countries with a 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 online commercial real estate information, analysis and markets. For more information, please visit str.com and costargroup.com.
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