US hotel P&L turned positive in July

U.S. hotel gross operating profit per available room (GOPPAR) reached positive territory for the first time since February, according to STR‘s latest monthly P&L data release.

In a year-over-year comparison with July 2019, the industry reported the following:

• GOPPAR: -93.3% to US$5.74
• TRevPAR: -74.1% to US$60.04
• EBITDA PAR: -115.1% to US$-9.24
• LPAR (Labor Costs): -64.8% to US$28.46

The industry had registered negative GOPPAR values for four consecutive months: March (US$-2.10), April (US-$17.98), May (US$-10.26) and June (US$-5.89).

“As the industry inched closer to 50% occupancy, we saw continued incremental improvement in the subsequent profitability metrics,” said Raquel Ortiz, STR’s assistant director of financial performance. “We are of course nowhere near pre-pandemic levels, but there were additional encouraging signs in positive GOPPAR for full-service hotels and six major markets.”

All of the above insights are outlined in July profitability slides HERE. Industry stakeholders interested in Monthly P&L participation should contact MonthlyPnL@STR.com. Those interested in subscribing to reports should contact their account manager or info@STR.com.

Key profitability metrics:

TRevPAR - Total revenue per available room
GOPPAR - Gross operating profit per available room
EBITDA - Earnings before interest, income tax, depreciation, and amortization
LPAR - Total labor costs per available room