The middle of summer brought better hotel performance data than STR has recorded since the COVID-19 pandemic started in the U.S.
(STR is the parent company of Hotel News Now.)
Gross operating profit margin was positive for the first time since March, and more U.S. hotel markets are now realizing positive gross operating profit per available room (GOPPAR).
Full-service hotels finally able to break-through to profitability
For the first time since February, full-service hotels were able to show positive GOPPAR in July. Although this was only GOPPAR of $3, it’s a long way from the days of -$25 GOPPAR. Moreover, full-service hotels started to break even at around 40% occupancy, and 46% of these hotels showed positive GOPPAR. In terms of net income, 30% of full-service hotels were profitable. Limited-service hotels do continue to outpace full-service in terms of GOPPAR, but both continue to show incremental improvements each month.