Skip to content

Search

Latest Stories

STR: Hotel profitability in April exceeds pre-pandemic levels for second month

Rise in top-line metrics brings up bottom-line metrics as well

STR: Hotel profitability in April exceeds pre-pandemic levels for second month

THE PROFITABILITY OF U.S. hotel exceeded pre-pandemic comparable levels for a second consecutive month in April, according to STR. The GOPPAR, TrevPAR and EBITDA PAR levels were the highest since November 2019 during the month.

GOPPAR was $90.96 for the month, up by more than $7 reported in March. In February , GOPPAR stood at $58.88. EBITDA PAR was $68.37 for April, TRevPAR was $218.40 and labor costs per room were $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 of 41.6 percent 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.”

According to STR, nine of the major markets realized GOPPAR and TrevPAR levels higher than 2019.

“Miami continues to lead in both GOPPAR and TrevPAR recovery, hitting 178 percent 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.

More for you

Brooklyn: Panwala’s Hotel BPM to Reopen this Fall

Panwala’s Hotel BPM Brooklyn to reopen this fall

DJ BIJAL PANWALA’S Hotel BPM Brooklyn in Brooklyn, New York, is set to reopen in late fall following a multi-million-dollar renovation. The 70-room hotel will be managed by Hotel Equites.

Hotel BPM is also known as Hotel Beats Per Minute.

Keep ReadingShow less
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