Profit levels in the major markets are further evidence of business travel and groups. Overall, 13 of the Top 25 markets posted double-digit growth in GOPPAR through September, led by New York City and Oahu.
WASHINGTON – A recent increase in U.S. hotel labor costs reflects a normalizing business mix and significant gains in group demand, according to September year-to-date P&L data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
September 2023 YTD per-available-room metrics (% change from September 2022 YTD)
- GOPPAR: US$75.74 (+6.2%)
- TRevPAR: US$208.34 (+8.6%)
- EBITDA PAR: US$52.95 (+5.1%)
- LPAR (Labor Costs): US$69.36 (+13.1%)
“September labor costs were higher than the summer months even though overall demand was lower. That is consistent with leisure travel subsiding and corporate travel in peak season,” said Raquel Ortiz, STR’s director of financial performance.
“Revenue metrics have wavered month to month, but growth in labor costs has remained consistent,” Ortiz said. “On a per-occupied-room basis, F&B labor costs were up 9.8% year to date, which was the most of any department. That nearly double-digit increase supports the improvement in group business we have been reporting in the top-line metrics and aligns with weekday groups lifting the bottom line. Catering and banquet revenues jumped 20% year over year, another measure of the return of corporate and group demand.”
“Roughly 60% of hotel industry revenue growth in the past six weeks is from weekdays, with the major markets leading the way,” said Ortiz. “Additionally, U.S. group demand has risen by an average of 3.1% year over year since Labor Day.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
