Skip to content
Search

Latest Stories

STR: U.S. hotels’ May GOPPAR declines from previous month

The agency reports 10 of the top 25 markets saw lower GOPPAR levels than May 2022

STR: U.S. hotels’ May GOPPAR declines from previous month

GOPPAR FOR U.S. hotels declined compared to the previous month, primarily due to weak revenue growth coupled with substantial labor costs, according to STR‘s May 2023 Profit & Loss data. Summer is expected to bring even more revenue to offset springtime expenses.

In May 2023, GOPPAR reached $83.86, representing a 2.6 percent decline compared to the same month in 2022. TRevPAR stood at $222.78, indicating a 4.1 percent increase, while EBITDA PAR amounted to $61.16, down 7.1 percent from May 2022. Labor costs experienced a significant rise, reaching $72.82, reflecting a 13.6 percent increase.


“Weak revenue growth tied with strong labor costs caused GOPPAR to decline year-over-year for the first time in 16 months,” said Raquel Ortiz, STR’s director of financial performance. “The increase in labor costs was nearly three times that of revenue, but despite this, profit margins continue to rise due to higher total revenues and managing expenses through reduced services, lower employment levels and changes in operation. With summer upon us, we can expect stronger demand and revenue growth that will likely counter some of the expenses seen in late spring.”

Among the top 25 markets, 10 experienced GOPPAR levels below those of May 2022, with Las Vegas having the lowest index, standing at 63 percent of the levels seen in 2022.

"Leisure destination Oahu Island demonstrated exceptional performance, surpassing other major markets in terms of the GOPPAR index," Ortiz added. "Additionally, business-centric markets like Chicago showcased strength in this metric. Furthermore, group-dependent markets have continued to perform well year-to-date, with New York City reporting a remarkable GOPPAR index of 231 percent against May 2022."

In February, GOPPAR exceeded the levels of the pre-pandemic comparable time period and was the highest since October 2022, STR said.

More for you

Peachtree Group , celebrating their 2024 ranking as the 8th largest U.S. CRE lender with $1.6B in investments.
Photo credit: Peachtree Group

Peachtree ranked eighth-largest CRE lender in the U.S.

Peachtree Group Ranks 8th in U.S. CRE Lending for 2024

PEACHTREE GROUP IS the eighth-largest commercial real estate lender in the U.S., according to the Mortgage Bankers Association’s 2024 loan origination rankings. The company deployed $1.6 billion in commercial real estate credit investments.

The MBA also ranked Peachtree seventh among U.S. CRE hotel lenders for the fourth consecutive year and recognized it across the office, multifamily, retail, and industrial sectors, Peachtree said in a statement.

Keep ReadingShow less
stayAPT Suites Lancaster hotel by Destiny Partners in 2025

Destiny, stayAPT to franchise five PA hotels

Why stayAPT Suites and Destiny Partners Are Redefining Extended Stays

DESTINY PARTNERS LLC and stayAPT Suites signed a franchise deal for five Pennsylvania locations: Lancaster, Reading, York, Bethlehem, and Allentown. Construction begins this spring on the first 94-room, four-story property in Lancaster.

Destiny Partners co-founder Shakher Patel leads the firm, while Gary DeLapp is stayAPT Suites' president and CEO.

Keep ReadingShow less
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