Labor costs reached highest growth rate of pandemic-era.
U.S. hotel gross operating profit per available room (GOPPAR) fell year over year for a second consecutive month, according to CoStar’s June 2023 P&L data release.
June 2023 per-available-room metrics (% change from June 2022)
- GOPPAR: US$91.37 (-1.4%)
- TRevPAR: US$237.12 (+4.8%)
- EBITDA PAR: US$66.78 (-5.6%)
- LPAR (Labor Costs): US$75.48 (+13.4%)
“Labor costs continued to rise year over year, growing nearly three times the rate of total revenue,” said Raquel Ortiz, STR’s director of financial performance.
“That increase, tied with higher growth in other expense types, caused a profit decline from last June. Despite the year-over-year decline, the GOPPAR level was improved from May, and with cooling inflation, real GOPPAR and TRevPAR were up month over month for the first time since March.”
Thirteen of the Top 25 Markets saw GOPPAR levels below June 2022, with San Francisco showing the lowest index (at 52% of 2022 levels). Las Vegas was the only other market to report a GOPPAR index below 80% (at 68% of 2022 levels).
“Year to date through June, the Top 25 Markets were still $2 behind 2022 in GOPPAR and three percentage points behind the previous year’s GOP margin,” Ortiz said. “These major markets still have some ground to cover as the year progresses.”
CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. For more information about the company and its products and services, please visit www.costargroup.com.
