Hotel GOPPAR profit

Hotel Profitability In The U.S. Hits Pandemic High

According to the STR’s February monthly P & L data release of 2021, U.S. hotel gross operating profit per available room (GOPPAR) has reached its highest absolute level so it’s a great reset for the hospitality world.

Since the COVID pandemic’s initial impact on the hotel industry performance, GOPPAR has see no higher than $12.69 any month. Additionally, year-over-year comparisons were less of steep with improved absolute levels in the metrics of profitability.

  • GOPPAR: $17.35% (-83.3%)
  • TRevPAR: US$85.11 (-67.4%)
  • EBITDA PAR: US$0.14 (-99.8%)
  • LPAR (Labor Costs): US$34.26 (-60.2%)

Source: www.hospitalitynet.org

The STR’s assistant director of financial performance stated that, year-over-year the percentage changes will turn pretty much positive in the future P & L data releases due to the comparison with pandemic low months last year.

He then added, additionally, the industry’s top-line metrics have been trending at their highest levels in more than a year, as shown in their recent weekly data releases for March, and the uptick should extend to the bottom line as properties generate more room revenue while still maintaining operational efficiencies developed this last year.

Roughly 50% occupancy is the still the general break-even point for turning a profit, but only 44% of properties reached positive GOP territory in February—the percentage was lower on a net income level. With most of the demand in the marketplace being leisure-driven, the major markets, most dependent on business and group demand, continue to struggle the most even with some improvement last month.

While, the damage correction is being taken care hoteliers much embrace technology and welcome advancements to transform themselves to stay ahead of the curve when demand returns.

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