WASHINGTON—Improvement in group business, especially across the Top 25 Markets and upper-upscale chains, drove growth in U.S. hotel revenues and profits, according to 2023 P&L data from CoStar.
U.S. Hotel Performance
2023 per-available-room metrics
Percentage change from 2022
GOPPAR: $75.83 (up 8.2 percent)
TRevPAR: $211.49 (up 9.6 percent)
EBITDA PAR: $53.05 (up 7.6 percent)
LPAR: $71.56 (up 13.2 percent)
“Total industry revenues and profits were well beyond 2022 levels as pricing power continued to outweigh the impact of softer leisure demand,” said Claudia Alvarado Cruz, senior analytics manager at STR. “A lift in corporate demand made improvements especially notable across the upper-upscale brands and major markets. New York City was the shining example with 47 percent growth in GOPPAR.”
Overall, 14 of the Top 25 Markets reported double-digit increases in GOPPAR.
“F&B labor costs on a per-occupied-room basis showed the largest growth of any department in 2023,” said Alvarado Cruz. “Year over year, F&B revenues on the same basis were up 9.1 percent but remained down compared to 2019 when adjusted for inflation. Further evidence of the improvement in group business, banquet, and catering per occupied room showed an increase of 13 percent this year.”
