Skip to content
Search

Latest Stories

STR: U.S. hotel profitability highest since February 2020

Labor remains the highest cost, metro areas are struggling

STR: U.S. hotel profitability highest since February 2020

U.S. HOTELS REPORTED higher profitability on a per-available-room basis in June 2021 when compared to any month since February 2020, according to STR. But labor costs were at the highest level since March 2020.

Gross operating profits reached 84 percent of 2019 levels, according to STR‘s June 2021 monthly P&L data release. Labor costs also rose in June when compared to May this year.  In comparison with 2019, a similar trend has been witnessed in people cost, the report added.


However, New York City, San Francisco and Oahu Island are still realizing negative GOP, and most top markets are reporting less than 50 percent of 2019 revenues, according to STR.

GOPPAR for June was $50.67, the profitability metrics was $37.30 for May. TRevPAR was $131.81 and EBITDA PAR was $33.10 during the months. Labor costs was $37.39 during June this year. It was $30.96 a month ago.

U.S. hotel profits rose between April and May and crept closer to 2019 levels in May, an earlier STR report said.

“After the industry recorded its highest top-line metrics since October 2019, it is no surprise that profitability followed suit,” said Joseph Rael, STR’s senior director for financial performance. “Market leisure demand is driving profitability, as F&B revenues remain weak due to the continued lack of group travel. While profits have improved immensely, levels still remain well below 2019 comparables. We can expect to see profits return at accelerated levels as demand and revenues rebound.”

Rael said that many hotels are still being hit hard financially, and labor costs remain depressed when compared with pre-pandemic levels as hotel staffs are doing a lot more with a lot less help.

“One monthly trend that is still ongoing is that properties in the major metros are still struggling. New York City, San Francisco and Oahu Island are still realizing negative GOP, and most top markets are reporting less than 50 percent of 2019 revenues. Beach destinations such as Miami, Norfolk/Virginia Beach, and Tampa, on the other hand, are experiencing better overall performance,” he said.

The U.S. hotel industry recorded its highest monthly occupancy and RevPAR since October 2019 in June, a recent report said. Oahu Island recorded the highest ADR, $227.22, and RevPAR, $171.40. Overall, the top 25 markets showed lower occupancy but higher ADR than all other markets.

More for you

હન્ટર કોન્ફરન્સ 2025: નવું સ્થળ, આર્થિક ચર્ચા

હંટર હોટેલ કોન્ફરન્સે મોટા પગલાની જાહેરાત કરી

હન્ટર હોટેલ ઇન્વેસ્ટમેન્ટ કોન્ફરન્સે આ અઠવાડિયે તેની 2025 મીટિંગની શરૂઆત એવા સમાચાર સાથે કરી હતી કે તે આવતા વર્ષે નવા સ્થાને જશે. ઉપરાંત, કોન્ફરન્સમાં વક્તાઓએ યુ.એસ.ની અર્થવ્યવસ્થાને અસર કરતી વર્તમાન અશાંતિ અંગે તેમના મંતવ્યો આપ્યા હતા.

આ વર્ષની કોન્ફરન્સની થીમ હતી “એલિવેટ યોર ગેમ,”, કોન્ફરન્સ ચેરમેન અને પ્રાયોજક હન્ટર હોટેલ એડવાઈઝર્સના સીઓઓ લી હન્ટરે ડાઉનટાઉન એટલાન્ટામાં મેરિયોટ માર્ક્વિસ હોટેલ ખાતે મંગળવારે તેમની શરૂઆતની ટિપ્પણીઓમાં જણાવ્યું હતું. કોન્ફરન્સમાં 2,200 થી વધુ લોકોએ હાજરી આપી હતી.

Keep ReadingShow less
AAHOACON25 ન્યૂ ઓર્લિયન્સમાં 15-17 એપ્રિલ 2025 દરમિયાન યોજાશે

AAHOACON25 ન્યૂ ઓર્લિયન્સમાં 15-17 એપ્રિલ દરમિયાન યોજાશે

AAHOA 2025 AAHOA કન્વેન્શન એન્ડ ટ્રેડ શો માટે તૈયારી કરી રહ્યું છે, જે 15 થી 17 એપ્રિલના રોજ ન્યૂ ઓર્લિયન્સમાં નક્કી કરવામાં આવ્યું છે. "નવા વિચારો, નવી તકો, ન્યુ ઓર્લિયન્સ" થીમ આધારિત આ ઇવેન્ટમાં ત્રણ દિવસનું શિક્ષણ, નેટવર્કિંગ અને ટ્રેડ શો છે.

આધ્યાત્મિક નેતા ગુરુદેવ શ્રી શ્રી રવિશંકર AAHOACON25 ના જનરલ સેશનમાં મુખ્ય વક્તા હશે, એમ AAHOA એ એક નિવેદનમાં જણાવ્યું છે.

Keep ReadingShow less
David Wahba, Stonebridge Cos. VP of Sales, at a luxury resort property in 2025
Photo credit: Stonebridge Cos.

Wahba is Stonebridge’s VP of sales luxury, lifestyle

David Wahba to Lead Stonebridge’s Luxury Sales Strategy

David Wahba is now vice president of sales for luxury, lifestyle and resort properties at Stonebridge Cos. In this role, he will oversee sales strategy for the company’s luxury portfolio.

Wahba brings more than 25 years of hospitality experience, Stonebridge said in a statement.

Keep ReadingShow less
G6 Hospitality CEO Sonal Sinha at franchisee meeting discussing Motel 6 and Studio 6 growth in 2025
Photo credit: G6 Hospitality

G6 Hospitality plans nationwide franchisee engagement

G6 Hospitality’s 2025 Franchisee Meetings Drive Collaboration

G6 HOSPITALITY, PARENT company of Motel 6 and Studio 6, aims to hold more than 15 franchisee meetings nationwide as part of its franchisee engagement initiative. The company began the initiative earlier this year and plans to hold one meeting in each region before year-end.

The company engages owners to strengthen relationships and gather insights for growth, G6 said in a statement.

Keep ReadingShow less