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U.S. hotel profitability improved in May, limited-service properties break even at 45% occupancy

Among top markets, Phoenix reported the most improvement from April to May in TrevPAR ($18.52).

Among top markets, Phoenix reported the most improvement from April to May in TrevPAR ($18.52), while Los Angeles/Long Beach showed the largest gain in GOPPAR ($28.33).

BROOMFIELD, COLORADO – STR‘s latest monthly P&L data release shows U.S. hotel gross operating profit per available room down 110.1% in May. That percentage change was a slight improvement from April’s decline of 116.9%. Additionally, limited-service properties showed positive profitability on average when surpassing 45% occupancy. 

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

  • GOPPAR: -110.1% to US$-10.26
  • TRevPAR: -88.3% to US$28.62
  • EBIDTA PAR: -130.9% to US$-24.14
  • LPAR (Labor Costs): -69.5% to US$24.30

“Make no mistake, profits are still down significantly, and in many cases, open hotels are struggling to turn a profit,” said Joseph Rael, STR’s senior director of financial performance. “However, consistent with the occupancy and RevPAR trends shown in our weekly data releases, hotels opened up more in May and saw improved business compared with the previous month. As we have noted, the lower end of the market has seen less severe performance declines throughout the time of the pandemic, and in May specifically, we saw limited-service properties begin to turn a profit when crossing the 45% mark in occupancy.”

Among top markets, Phoenix reported the most improvement from April to May in TrevPAR ($18.52), while Los Angeles/Long Beach showed the largest gain in GOPPAR ($28.33).

Tatiana Rokou

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

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.

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