HENDERSONVILLE, Tenn. — U.S. hotel profitability increased from the previous month on a per-available-room basis but was down when indexed to 2019, according to STR‘s October 2021 monthly P&L data release.
All of the key profitability metrics increased from September as October is historically a higher revenue month. GOPPAR (gross operating profit per available room) was at US$62.75, TRevPAR (total revenue per available room) was at US$165.03, EBITDA PAR (earnings before interest, income tax, depreciation, and amortization) came in at US$44.14 and LPAR (total labour costs per available room) were US$52.17.
Estimated industry-wide gross operating profit was 89 per cent of the 2019 comparable, after coming in at 97 per cent when using the same index comparison in September. Labour costs reached 91 per cent of pre-pandemic comparables in October after reaching a high of 96 per cent in September.
“October data was important to analyze from multiple angles,” says Raquel Ortiz, STR’s assistant director of Financial Performance. “The metrics were up quite a bit from September if you measure by available rooms, but that’s to be expected as October is usually a stronger revenue month due to conferences and group travel. When you extrapolate and bring in the comparison to pre-pandemic times, performance was lower. Fortunately, even with less corporate business this year, profit margins (38 per cent) still came relatively close to what we saw in 2019 (40.9 per cent).”
Of note among major markets, Miami’s October year-to-date GOPPAR level surpassed the comparable 2019 level, while San Francisco moved into positive GOPPAR territory when averaging the first 10 months of the year.