U.S. Hotel Revenue Reaches 50% of 2019 Level

Graphic - Source - STR - U.S. Hotel Revenues
U.S. Hotel Revenue Reaches 50% of 2019 Level

Gross operating profit for U.S. hotels reached 50% of the comparable 2019 level, according to STR‘s March 2021 monthly P&L data release.

GOPPAR, TRevPAR and EBITDA PAR came in higher than any month since February 2020.

  • GOPPAR: US$26.79
  • TRevPAR: US$86.61
  • EBITDA PAR: US$12.77
  • LPAR (Labor Costs): US$27.66

Amid hiring difficulties, total labor costs were just 60% of the figure reported for March 2019.

“We have seen continued improvement in room revenue, but with little coming in from F&B and other departments, industry TrevPAR is not gaining as much steam,” said Raquel Ortiz, STR’s assistant director of financial performance. “At the same time, however, the lack of F&B expenses is allowing profit margins to grow closer to normal. Though other revenues are up compared with recent months, we don’t expect to see a significant boost in those numbers until group demand resurfaces.

“Fortunately, not all hotels are struggling. Hotels with enough demand to achieve occupancy levels above 50% have been able to turn a profit. This is especially true for the limited-service segment, where 68% of hotels have remained profitable. These margins are of course at reduced operations in a lot of cases, so some full-service hotels are operating more like limited-service with far less F&B offerings, and some limited-service hotels are operating like extended-stay properties with less daily room cleanings. Overall, profitability is recovering at a slightly quicker pace than anticipated, although the industry has a long way to go.”

STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.