U.S. hotel gross operating profit per available room improved from the month previous and exceeded the prepandemic comparable, according to STR's September 2022 profit and loss data release. Additionally, the cost of labor per available room came in higher than the prepandemic comparable for the first time.
- GOPPAR: $84.03
- Total revenue per available room: $222.97
- Earnings before interest, income tax, depreciation and amortization per available room: $60.71
- Labor costs per available room: $71.52
“Labor costs moved ahead of the 2019 comparable due to continued high levels of hospitality unemployment and more spending on contract labor,” said Raquel Ortiz, STR’s director of financial performance. “Total labor costs were up 5 percent year to date, with all departments reporting higher expenses, except [food and beverage], due to less group demand earlier this year.
“GOPPAR was the strongest since June 2022, and profit margins came in higher than September 2019. Profit margins have been strong for some time caused by lower employment levels and reduced services.”
Thirteen of the major markets realized both GOPPAR and TrevPAR levels higher than the 2019 comparables.
“Miami still remains the front-runner when it comes to both GOPPAR and TrevPAR recovery. Just three of the top 25 markets—Minneapolis, New Orleans and San Francisco—remained below 80 percent of 2019 GOPPAR levels. While San Francisco is showing some improvement, other business-centric markets, such as Chicago and New York City, saw GOPPAR that was higher than the prepandemic comparable,” Ortiz said.