U.S. hotel profitability hit double figures for the first time since February and year-over-year comparisons improved slightly from the previous month, according to STR‘s October monthly profit and loss data release.
In a year-over-year comparison with October 2019, the industry reported that gross operating profit per available room dropped 88.3 percent to $12.69, while total revenue per available room fell 72.2 percent to $70.96. Earnings before interest, taxes, depreciation and amortization per available room were down 103.8 percent to -$3.24 while labor costs dropped 61.1 percent to $31.28.
The industry’s GOPPAR was in single digits for the previous three months, including a level of $8.14 in September.
“There were positives in the profitability data even as occupancy flattened and the extension of the summer leisure lift came to an end,” said Audrey Kallman, operations analyst at STR. “GOP margin increased six percentage points from September, and certain location types reported encouraging data—GOPPAR for airport hotels was nearly three times higher than the previous month, and interstate properties drew close to prepandemic levels.
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“On the negative side, a lack of group business continued to stand out with upper-upscale hotels showing the lowest GOPPAR among the classes. October is usually a strong month for conferences and events, but without those significant demand generators, GOPPAR for upper-upscale properties came in more than $100 lower than this time last year.”