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Recovery of US Hotel Profitability Stalled in October

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U.S. hotel profitability increased from the previous month on a per-available-room basis but was down when indexed to 2019, according to STR‘s October 2021 monthly P&L data release.

All of the key profitability metrics increased from September as October is historically a higher revenue month.

  • GOPPAR: $62.75
  • TRevPAR: $165.03
  • EBITDA PAR: $44.14
  • LPAR (Labor Costs): $52.17

Estimated industrywide gross operating profit was 89% of the 2019 comparable, after coming in at 97% when using the same index comparison in September. Labor costs reached 91% of pre-pandemic comparables in October after reaching a high of 96% in September.

“October data was important to analyze from multiple angles,” said Raquel Ortiz, STR’s assistant director of financial performance. The metrics were up quite a bit from September if you measure by available rooms, but that’s to be expected as October is usually a stronger revenue month due to conferences and group travel. When you extrapolate and bring in the comparison to pre-pandemic times, performance was lower. Fortunately, even with less corporate business this year, profit margins (38%) still came relatively close to what we saw in 2019 (40.9%).”

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Of note among major markets, Miami’s October year-to-date GOPPAR level surpassed the comparable 2019 level, while San Francisco moved into positive GOPPAR territory when averaging the first 10 months of the year.

Industry stakeholders interested in Monthly P&L participation should contact [email protected] Those interested in subscribing to reports should contact their account manager or [email protected]

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STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.

The above is a news release written by a third party. While HNN’s editorial mission is to produce unique content, it occasionally publishes timely, newsworthy news releases to complement in-house reporting efforts. All news releases are clearly marked as such. For questions and clarification, please contact Editorial Director Stephanie Ricca at [email protected]

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