STR: Improvements in U.S. Hotel Profitability Slow in August

Profit decline

BROOMFIELD, Colorado—Improvements in U.S. hotel profitability metrics slowed in August 2020, according to STR‘s latest monthly P&L data release.

In a year-over-year comparison with August 2019, the industry reported a 91.3 percent decline in gross operating profit per available room (GOPPAR) to $6.90 in August 2020, a 74.5 percent fall in total revenue per available room (TRevPAR) to $55.72, a 112.1 percent drop in earnings before interest, income tax, depreciation, and amortization per available room (EBITDA PAR) to -$6.96, and a 64.4 percent decrease in labor costs per available room (LPAR) to $27.19.

U.S. Hotel Profitability Metrics

August 2020 vs. August 2019

 

GOPPAR: -91.3% to $6.90
TRevPAR: -74.5% to $55.72
EBITDA PAR: -112.1% to -$6.96
LPAR: -64.4% to $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 percent of what it was last August, while limited-service properties came in at 38 percent of last year’s value.”
STR August profitability

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STR August profitability

 


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