Skip to content

Search

Latest Stories

STR: Hotel GOPPAR for 2021 at 52 percent of 2019 level

Holidays made November and December particularly strong

STR: Hotel GOPPAR for 2021 at 52 percent of 2019 level

IN 2021, GOPPAR for U.S. hotels reached 52 percent of the comparable 2019 level, according to STR‘s full-year 2021 P&L data release. The holiday period was particularly profitable last year.

GOPPAR for the year was $40.48, TRevPAR was $124.36 and EBITDA PAR was $23.96. Labor costs were $41.82.


November and December saw strong holiday demand that helped overall profitability levels, with December showing 2021’s highest recovery index in each of the key metrics. GOPPAR was $46.98 for that month, TRevPAR was $154.50, EBITDA PAR was $29.76 and labor cost was $56.30. In November, GOPPAR was $50.07 for that month, TRevPAR was  $153.74, EBITDA PAR was  $34.55 and labor was $53.55.

October also was a strong month, with GOPPAR at $62.75, up from $46.29 in September. TRevPAR for the month was $165.03, compared to $140.94 the month before, and EBITDA PAR was $44.14, up from $30.47 in September. At the same time, labor costs also rose from $47.50 the previous month to $52.17 in October.

“Though the industry still has a way to go on the path to full recovery, a lot of headway was made in 2021,” said Raquel Ortiz, STR’s assistant director of financial performance. “Each passing month we saw revenues and profits continue on a positive, upward trend. Profit margins were relatively strong throughout the year, remaining close to pre-pandemic levels. Better margins largely stemmed from lower expenses, due to lower demand and a lack of groups and meetings, while other lifts came from cuts in room service, more online customer service, and lower employment levels. Labor costs, which were a large concern even before the pandemic, will continue to put pressure on the bottom line.”

All major markets saw positive GOPPAR for the year, particularly beach destinations such as Miami and Tampa. Markets that rely heavily on business demand, such as San Francisco/San Mateo, still have more ground to cover in terms of reaching pre-pandemic GOPPAR and TrevPAR levels.

More for you

AHLA members meet with U.S. lawmakers to discuss key hospitality legislation impacting hotel owners and workers

AHLA shares priorities with lawmakers

AHLA Members Unite on Capitol Hill to Advance Hospitality Legislation

MORE THAN 250 American Hotel & Lodging Association members met with lawmakers in the U.S. Senate and House to discuss legislative priorities critical to the hospitality industry. They raised concerns about tax and trade policies impacting hotel operating costs and travel demand amid ongoing budget reconciliation and tax negotiations.

Members also discussed expanding and upskilling the hospitality workforce through measures such as adjusting the H-2B visa cap and protecting the franchise model, which supports more than half of all U.S. hotels and 2.8 million jobs, the association said in a statement.

Keep ReadingShow less
CBRE: US Hotel RevPAR to Grow 1.3 Percent in 2025

CBRE: RevPAR to grow 1.3 percent in 2025

U.S. HOTEL REVPAR is expected to grow 1.3 percent in 2025, supported by urban markets from group and business travel and increased demand for drive-to and regional leisure destinations, according to CBRE. Occupancy is forecast to rise 14 basis points and ADR 1.2 percent year-over-year.

This represents slower growth than CBRE’s February forecast, which projected 2 percent RevPAR growth based on a 21-basis-point increase in occupancy and a 1.6 percent rise in ADR, the commercial real estate and investment firm said.

Keep ReadingShow less
Palette Hotels to Transform DoubleTree by Hilton in Washington, PA

Palette to manage Washington, PA, DoubleTree

Palette’s Expertise in Hospitality Management

SUNRISE GOLD HOSPITALITY recently selected Palette Hotels to manage its 140-room DoubleTree by Hilton Washington Meadow Lands Casino Area in Washington, Pennsylvania. Palette will oversee renovations, including Hilton Connected Rooms technology upgrades, new signage, landscaping, building systems and updates to the lobby, guestrooms, bathrooms, meeting spaces, restaurant, bar and lounge.

Sunrise Gold Hospitality is led by owner Ramesh Pandya, and Palette Hotels by Founder and CEO Richard Lou.

Keep ReadingShow less