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.
HENDERSONVILLE, TENNESSEE – 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: US$62.75
- TRevPAR: US$165.03
- EBITDA PAR: US$44.14
- LPAR (Labor Costs): US$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%).”
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.
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She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
