Skip to content

Search

Latest Stories

CoStar: Corporate, group demand boosted U.S. hotel profitability in September

Thirteen of the top 25 markets saw double-digit GOPPAR growth through September

CoStar: Corporate, group demand boosted U.S. hotel profitability in September

U.S. HOTEL PROFITABILITY rose in September, driven by increased corporate demand and group bookings, according to STR's May 2023 Profit & Loss data. Meanwhile, this upward trend is complemented by a recent increase in U.S. hotel labor costs, indicating a shift towards a more balanced business mix and substantial growth in group demand.

In September, GOPPAR reached $75.74, showing a 6.2 percent increase compared to the same month in 2022. TRevPAR stood at $208.34, indicating an 8.6 percent increase, while EBITDA PAR amounted to $52.95, up 5.1 percent from September 2022. Labor costs experienced a notable rise, reaching $69.36, reflecting a 13.1 percent increase.


“September labor costs were higher than the summer months even though overall demand was lower," said Raquel Ortiz, STR’s director of financial performance. “This aligns with leisure travel subsiding and corporate travel peaking in the season.”

"Revenue metrics have fluctuated month to month, but labor costs have shown steady growth," Ortiz added. "On a per-occupied-room basis, F&B labor costs increased by 9.8 percent year to date, the highest among all departments. This nearly double-digit rise corroborates the uptick in group business we've been observing in the top-line metrics and correlates with weekday groups boosting the bottom line. Catering and banquet revenues surged by 20 percent year over year, further indicating the resurgence of corporate and group demand.”

Profit levels in major markets reflect increased business travel and group activity, CoStar data showed. Of the top 25 markets, 13 saw double-digit growth in GOPPAR through September, with New York City and Oahu leading the way.

“Roughly 60 percent of hotel industry revenue growth in the past six weeks is from weekdays, with the major markets leading the way,” said Ortiz. “Additionally, U.S. group demand has risen by an average of 3.1 percent year over year since Labor Day.”

According to CoStar’s June 2023 Profit & Loss data, GOPPAR for U.S. hotels experienced a year-over-year decline for a second consecutive month, primarily due to rising labor costs. Despite this, the GOPPAR level showed signs of improvement compared to May.

More for you

Trump reviewing 55 million us visas
Getty Images

Trump reviewing 55 million visas

Summary:

  • The Trump administration says it is reviewing more than 55 million visa holders.
  • Reviews cover a wide range of visas for law enforcement and overstay violations.
  • The administration also suspended worker visas for foreign commercial truck drivers.

THE TRUMP ADMINISTRATION is reviewing more than 55 million people who hold valid U.S. visas for potential violations. It is expanding a policy of “continuous vetting” that could result in revocation and deportation.

Keep ReadingShow less
Peachtree Funds Rio Las Vegas Renovations | $176M CPACE Loan
Photo credit: Hyatt Hotels Corp.

Peachtree originates retroactive CPACE loan for Rio Vegas

Summary:

  • Peachtree Group originated a $176.5 million retroactive CPACE loan for a Las Vegas property.
  • The deal closed in under 60 days and ranks among the largest CPACE financings in the U.S.
  • The company promotes retroactive CPACE funding for commercial real estate development.

PEACHTREE GROUP ORIGINATED a $176.5 million retroactive Commercial Property Assessed Clean Energy loan for Dreamscape Cos.’s Rio Hotel & Casino in Las Vegas. The deal, completed in under 60 days, is its largest credit transaction and one of the largest CPACE financings in the U.S.

Keep ReadingShow less
Global hotel construction pipeline reaches record 15,871 projects in Q2 2025, with U.S. and Dallas leading growth
Photo Credit: iStock

Report: Global pipeline hits 15,871 projects

Summary:

  • Global pipeline hit a record 15,871 projects with 2.4 million rooms in Q2.
  • The U.S. leads with 6,280 projects; Dallas tops cities with 199.
  • Nearly 2,900 hotels are expected to open worldwide by the end of 2025.

THE GLOBAL HOTEL pipeline reached 15,871 projects, up 3 percent year-over-year, and 2,436,225 rooms, up 2 percent, according to Lodging Econometrics. Most were upper midscale and upscale, LE reported.

Keep ReadingShow less
HAMA Launches 20th Student Case Competition in USA
Photo Credit: iStock

HAMA launches 20th student case competition

Summary:

  • HAMA is accepting submissions for its 20th annual student case competition.
  • The cases reflect a scenario HAMA members faced as owner representatives.
  • Teams must submit a financial analysis, solution and executive summary.

THE HOSPITALITY ASSET Managers Association is accepting submissions for the 20th Annual HAMA Student Case Competition, in which more than 60 students analyze a management company change scenario and provide recommendations. HAMA, HotStats and Lodging Analytics Research & Consulting are providing the case, based on a scenario HAMA members faced as owner representatives.

Keep ReadingShow less
Stonebridge hotel management expansion
Photo credit: Stonebridge Cos.

Stonebridge adds Statler Dallas to managed portfolio

Summary:

  • Stonebridge Cos. added the Statler Dallas, Curio Collection by Hilton, to its managed portfolio.
  • The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group.
  • The property is near Main Street Garden Park, the Arts District and the Dallas World Aquarium.

STONEBRIDGE COS. HAS contracted to manage the Statler Dallas, Curio Collection by Hilton in Dallas to its managed portfolio. The hotel, opened in 1956 and relaunched in 2017, is owned by Centurion American Development Group, led by Mehrdad Moayedi.

Keep ReadingShow less