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

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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).

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