US hotel profitability gains led by full-service chains, major markets
Thursday, 8th February 2024
Source : CoStar Group

Improvement in group business, especially across the Top 25 Markets and upper-upscale chains, drove growth in US hotel revenues and profits.

2023 per-available-room metrics (% change from 2022)

  • GOPPAR: US$75.83 (+8.2%)
  • TRevPAR: US$211.49 (+9.6%)
  • EBITDA PAR: US$53.05 (+7.6%)
  • LPAR (Labor Costs): US$71.56 (+13.2%)

“Total industry revenues and profits were well beyond 2022 levels as pricing power continued to outweigh the impact of softer leisure demand,” said Claudia Alvarado Cruz, senior analytics manager at STR.

“A lift in corporate demand made improvements especially notable across the upper-upscale brands and major markets. New York City was the shining example with 47% growth in GOPPAR.”

Overall, 14 of the Top 25 Markets reported double-digit increases in GOPPAR.

“F&B labor costs on a per-occupied-room basis showed the largest growth of any department in 2023,” said Alvarado Cruz.

“Year over year, F&B revenues on the same basis were up 9.1% but remained down compared to 2019 when adjusted for inflation. Further evidence of the improvement in group business, banquet and catering per occupied room showed an increase of 13% this year.”

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.

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