STR: U.S. hotel profitability above 2019 levels in May for third month in a row

THE PROFITABILITY OF U.S. hotels was above 2019 level for the third consecutive month in May, but was lower compared to April, according to STR. The GOPPAR and EBITDA PAR levels were down in May compared to the month before.

GOPPAR was $88.63 for the month, down from $90.96 reported in April. In March, GOPPAR stood at $83.81. EBITDA PAR was $67.80 for May, TRevPAR was $219.58 and labor costs per room were $66.27.

“After the top-line metrics showed mixed results in May, it wasn’t a surprise that the bottom-line metrics came in a bit lower,” said Raquel Ortiz, director of financial performance, STR. “Regardless, each of the four key P&L metrics showed improvement when indexed to 2019, with GOPPAR and EBITDA PAR coming in higher than May 2019 levels. We continue to keep a close eye on F&B as group demand levels rise. F&B revenues are gradually moving closer to 2019 levels, but catering and banquet revenues continue to lag.”

According to STR, eight of the major markets realized both GOPPAR and TrevPAR levels higher than 2019 comparable.

“With increased business demand, the top 25 markets are showing improved profit levels. Miami, primarily because of higher room rates, continues to lead in both GOPPAR and TrevPAR recovery, reaching 240 percent of 2019 GOPPAR levels. Markets with the lowest GOPPAR index in May included San Francisco and Oahu Island,” said Ortiz.