U.S. hotel profits fell 84.6% in 2020
Including a 100.6% decline in December, U.S. hotel profitability fell 84.6% in 2020, according to STR's latest monthly P&L data release.
December gross operating profit per available room (GOPPAR) came in worse than any month since June in both absolute terms and year-over-year comparisons.
Six of the major markets reported GOPPAR declines worse than 100% in 2020. Among those markets, New York City reported the steepest decline in the metric (-136.5%). Minneapolis/St. Paul showed the largest decrease in total revenue per available room (TRevPAR: -83.8%).
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Key profitability metrics:
- TRevPAR - Total revenue per available room
- GOPPAR - Gross operating profit per available room
- EBITDA - Earnings before interest, income tax, depreciation, and amortization
- LPAR - Total labor costs per available room
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.