US hotel profitability improvements slow in August
 
US hotel profitability improvements slow in August
25 SEPTEMBER 2020 9:06 AM

Overall hotel profitability was positive for the second consecutive month, according to STR's August P&L report.

BROOMFIELD, Colorado—Improvements in U.S. hotel profitability metrics slowed in August, according to STR‘s latest monthly P&L data release.

In a year-over-year comparison with August 2019, the industry reported the following:

• GOPPAR: -91.3% to US$6.90
• TRevPAR: -74.5% to US$55.72
• EBITDA PAR: -112.1% to US$-6.96
• LPAR (Labor Costs): -64.4% to US$27.19

“Overall profitability (GOPPAR) remained in positive territory for a second straight month, but the incremental improvements we had seen over the previous two months slowed,” said Raquel Ortiz, STR’s assistant director of financial performance. “Even though August produced the industry’s lowest year-over-year demand decline since March, revenue was stagnant. TRevPAR for full-service hotels was only 25% of what it was last August, while limited-service properties came in at 38% of last year’s value.”

Full, complimentary August profitability slides are available HERE. Industry stakeholders interested in Monthly P&L participation should contact MonthlyPnL@STR.com. Those interested in subscribing to reports should contact their account manager or info@STR.com

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 STR
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.
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