Skip to content

Search

Latest Stories

CoStar: U.S. hotels' GOPPAR declines in June due to labor cost

The agency reports 13 of the top 25 markets saw GOPPAR levels below June 2022

CoStar: U.S. hotels' GOPPAR declines in June due to labor cost

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

In June 2023, GOPPAR reached $91.37, showing a 1.4 percent decline from June 2022. TRevPAR stood at $237.12, indicating a 4.8 percent increase, while EBITDA PAR amounted to $66.78, experiencing a 5.6 percent decrease from June 2022. Labor costs surged to $75.48, reflecting a significant 13.4 percent increase compared to the same period last year.


“Labor costs continued to rise year-over-year, growing nearly three times the rate of total revenue,” said Raquel Ortiz, STR’s director of financial performance. “That increase, tied with higher growth in other expense types, caused a profit decline from last June. Despite the year-over-year decline, the GOPPAR level was improved from May, and with cooling inflation, real GOPPAR and TRevPAR were up month over month for the first time since March.”

Thirteen out of the top 25 markets experienced GOPPAR levels below those of June 2022, with San Francisco having the lowest index standing at 52 percent of the 2022 levels.

Las Vegas was the only other market to report a GOPPAR index below 80 percent, holding at 68 percent of the 2022 levels.

“Year to date through June, the top 25 markets were still $2 behind 2022 in GOPPAR and three percentage points behind the previous year’s GOP margin,” Ortiz said. “These major markets still have some ground to cover as the year progresses.”

In May, GOPPAR levels declined primarily due to weak revenue growth and substantial labor costs. Summer is expected to bring increased revenue to offset springtime expenses.

More for you

ExStay Washington DC

Third regional ExStay workshop set for D.C.

Summary:

  • ESLA and Kalibri will hold the third ExStay workshop on July 30 in Washington, D.C., following sessions in Atlanta and Dallas.
  • The event will feature experts from brands, operators, data firms and advisory groups.
  • Sessions will cover investment and include Q&As on developing, renovating, converting and operating extended stay assets.

THE EXTENDED STAY Lodging Association and Kalibri Labs will host the third quarterly ExStay workshop on July 30 in Washington, D.C., following earlier sessions in Atlanta and Dallas. The event will bring together extended stay lodging executives for networking.

Keep ReadingShow less
Deloitte value-seeking report 2025

Study: Consumers seek value over low prices

Summary:

  • Consumers are prioritizing value over low prices, pushing brands—including hotels—to adapt, Deloitte finds.
  • Economic uncertainty and inflation are driving caution and shifting views on pricing and spending.
  • Value-seeking by generations: 49 percent of Gen X, 43 percent of Boomers, 40 percent of Millennials and 44 percent of Gen Z.

AMID ECONOMIC UNCERTAINTY and inflation, U.S. consumers are prioritizing value over low prices, favoring brands with added benefits, according to a Deloitte study. This shift is reshaping the market as companies, including hotels, adapt to changing expectations.

Keep ReadingShow less
Red Roof partners with FreedomPay to streamline payments in 700+ U.S. hotels
Photo credit: Red Roof

Red Roof taps FreedomPay for 700+ hotels

Summary:

  • Red Roof is contracting with FreedomPay to provide payments across its 700+ U.S. hotels.
  • The company will gain an integrated solution, improved service, cost savings and efficiency.
  • The company is investing in people and technology to advance the brand, president Zack Gharib told Asian Hospitality.

RED ROOF IS contracting with FreedomPay to provide payments across its portfolio of more than 700 hotels in the U.S. The company will receive an integrated payment solution, upgraded service, cost savings and operational efficiency, according to a statement.

Keep ReadingShow less
Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less