Skip to content

Search

Latest Stories

U.S. hotels’ profits drop nearly 85 percent in 2020, per STR

HotStats reported profit loss of 93.7 percent for the year v. 2019

U.S. hotels’ profits drop nearly 85 percent in 2020, per STR

U.S. HOTELS’ PROFITS dropped 84.6 percent in 2020, according to STR. The industry also went another month little to no profit in December, according to STR and HotStats.

The annual dip in GOPPAR includes a 100.6 percent decline in December, according to STR. The December decline is the worst for any month since June, and in November it dropped 97.5 percent from November 2019.


TRevPAR for the year was $88.90, down 63.7 percent from $245.10 in 2019. It dropped 75.4 percent in December. EBITDA for the year was negative $2.34, down 103.3 percent from $70.01 in the previous year. It declined 113.3 percent in December. Labor cost for 2020 was $42.52 per room, down 49.7 percent from 2019’s $84.57. It fell 63.8 percent in December.

“Lower demand in December coupled with fixed expenses for hotels meant profit declines on par with early in the pandemic,” said Raquel Ortiz, assistant director of financial performance for STR. “That only worsened the overall 2020 figures, which showed an average profit level less than $15 per room after coming in at almost $95 in 2019. As noted in our revised forecast, this year is off to a slow start amid a worsening pandemic situation, so the pattern of dwindling profitability will likely continue in the coming months.”

STR also said six major markets reported GOPPAR declines worse than 100 percent in 2020. They included New York City with the steepest decline, down 136.5 percent, and Minneapolis/St. Paul with the largest decrease in TRevPAR, down 83.8 percent.

HotStats had somewhat more positive results for the global market, in which GOPPAR for the year was $15.76, down 77.6 percent from 2019. TRevPAR for the year was recorded at $91.87, a 53 percent decrease over 2019, while in December it reached $126.25, the first time it hit triple digits since February but still down 42 percent year over year.

For the U.S. alone, GOPPAR for 2020 was down 93.7 percent from 2019 to $6.20, and in December it dropped 98.9 percent to $0.89, according to HotStats. TRevPAR was down 68.3 percent to $84.85 for the year and down 76.3 percent to $57.55 for December. Labor for the year dipped 52.4 percent to $45.67 and went down 68 percent to $29.91 for the month.    -

“The U.S. popped back to break-even profit in December, and at $0.89, it was only the second time since February that the country achieved positive GOPPAR,” HotStats said in its report. “Efficiencies that hoteliers found and implemented in the face of the pandemic are likely to carry forward in 2021 and, potentially, beyond. Think labor structure and changes in F&B service and procurement.”

More for you

Choice Hotels campaigns

Choice launches campaigns for extended-stay brands

Summary:

  • Choice launched two campaigns to boost bookings across its four extended-stay brands.
  • Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
  • They will run through 2026 across social media, Connected TV, digital display and online video.

CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.

Keep ReadingShow less
BWH Hotels expands with AI-driven strategy and outdoor lodging focus

BWH sticks to growth plan despite headwinds

Summary:

  • BWH Hotels is staying the course on long-term growth, investing in AI and developer support.
  • A new insurance program has saved some BWH hoteliers $50,000 to $60,000 annually.
  • It aims to reach 5,150 hotels in five years, with 300 deals signed last year and 200-plus in the pipeline.

BWH HOTELS IS maintaining its long-term growth strategy despite market uncertainties, with President and CEO Larry Cuculic citing momentum across core markets. The company is investing in AI, supporting developers and focusing on long-term goals.

Keep ReadingShow less
Amex GBT & Chooose Launch Hotel Emissions Tracker

Amex GBT, Chooose to launch hotel emissions tracker

Summary:

  • Amex GBT and Chooose are launching a hotel emissions tracking tool to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
  • Emissions data in Amex GBT’s Global Trip Record and Data Lake ensures consistency across travel programs.
  • In January, Finland-based Bob W found hotel carbon emissions are five times higher than HCMI estimates.

SOFTWARE FIRMS AMERICAN Express Global Business Travel and Chooose are launching a hotel emissions tracking tool in the third quarter of 2025. The new tool, integrated into Amex GBT’s platforms, will provide standardized hotel emissions data to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.

Keep ReadingShow less
Marriott
Photo Credit: Marriott

Marriott closes $355M acquisition of citizenM

Summary:

  • Marriott International completed its $355 million acquisition of citizenM, a Netherlands-based select-service brand.
  • Integration into Marriott’s systems is underway.
  • Founded in 2008 by Rattan Chadha, citizenM targets travelers seeking smart room design, shared spaces.

MARRIOTT INTERNATIONAL COMPLETED its $355 million acquisition of citizenM, a Netherlands-based select-service brand founded by Rattan Chadha, as announced in April. CitizenM’s portfolio includes 37 hotels with 8,789 rooms across more than 20 cities in the U.S., Europe and Asia Pacific.

Keep ReadingShow less
Hilton

Hilton posts unit growth as Q2 RevPAR slips

Summary:

  • Hilton reported 7.5 percent net unit growth in the second quarter while systemwide RevPAR declined 0.5 percent year-over-year.
  • Net income and adjusted EBITDA for the first half of 2025 were $742 million and $1.8 billion, up from $690 million and $1.67 billion YoY.
  • For the third quarter of 2025, Hilton expects systemwide RevPAR to be flat to slightly down.

HILTON WORDLWIDE HOLDINGS reported 7.5 percent net unit growth in the second quarter of 2025, however systemwide RevPAR declined 0.5 percent year-over-year. The company said economic fluctuations are being felt but not hindering performance.

Keep ReadingShow less