U.S. Hotel Profit Improved To 60% Of 2019 Level, Labor Remains Stagnant
Gross operating profit for U.S. hotels reached 60% of the comparable 2019 level, according to STR‘s April 2021 monthly P&L data release. While GOP in comparison with 2019 improved from 50% in March, labor spending was up to just 64% in April after coming in at 60% the previous month.
BROOMFIELD, Colorado — Gross operating profit for U.S. hotels reached 60% of the comparable 2019 level, according to STR‘s April 2021 monthly P&L data release. While GOP in comparison with 2019 improved from 50% in March, labor spending was up to just 64% in April after coming in at 60% the previous month.
Each of the key profitability metrics, on a per-available-room basis, came in higher than any month since February 2020 except for labor, which was down slightly from March.
- GOPPAR: US$28.67
- TRevPAR: US$87.34
- EBITDA PAR: US$14.12
- LPAR (Labor Costs): US$26.76
“April was an encouraging month as more of the top-line improvement we’ve been reporting on flowed through to the bottom line,” said Raquel Ortiz, STR’s assistant director of financial performance. “On a GOP basis, 92% of our sample hotels were profitable, which is similar to pre-pandemic levels. Also of note, F&B venue revenue, the restaurants and bars, is recovering right in line with room revenue. Overall F&B of course continues to be bogged down by a lack of group demand and the subsequent spending on catering.”
“There is a long way to go, but if demand surges as expected this summer, we should continue to see accelerated profitability and improved margins around the industry,” Ortiz said. “Labor is the hot topic and we’ll continue to monitor that as demand increases and there is even greater competition for workers to service properties.”
Industry stakeholders interested in Monthly P&L participation should contact [email protected]. Those interested in subscribing to reports should contact their account manager or [email protected].
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
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia’s leading property marketplaces. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 139 million average monthly unique visitors in the fourth quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
Media Contact
Haley Luther
Senior Communications Manager [email protected] +1 (216) 278 0627