STR: March 2022 GOPPAR Reaches Highest Level Since November 2019

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HENDERSONVILLE, Tennessee—U.S. hotel gross operating profit per available room (GOPPAR) reached its highest level since November 2019, according to STR‘s March 2022 P&L data release.

The GOPPAR level was less than $10 shy of reaching the pre-pandemic comparable from March 2019.

U.S. Hotel Performance

GOPPAR: $83.81
TRevPAR: $204.84
EBITDA PAR: $62.68
LPAR (Labor Costs): $61.45

EBITDA PAR (earnings before interest, taxes, depreciation, and amortization per available room) was the industry’s highest since November 2019, while TRevPAR (total revenue per available room) and LPAR (labor costs per available room) were the highest since March 2020.

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“Aligned with jumps in top-line performance that have continued into April, each of the bottom-line metrics showed drastic improvement in March due to spring break travel and increased room rates,” said Raquel Ortiz, STR’s director of financial performance. “Overall, the metrics indexed at roughly 90 percent of pre-pandemic levels. Also reaching pandemic-era indexed highs were meeting space rentals (96), A/V rentals (85), and catering and banquets (72), which are connected to an uptick in group travel. Of course, some of the growth is inflationary, and much of the group demand is leisure-based at this point in the recovery, but there have been gains from the corporate sector as well.”

Eight of the major markets realized GOPPAR levels higher than 2019 comparables.

“Beach destinations continued to lead in both GOPPAR and TrevPAR recovery, with Miami hitting 141 percent of 2019 levels. On the other hand, San Francisco, which has improved recently, is still trekking behind other markets in terms of both GOPPAR and TrevPAR. Overall, eight of the Top 25 Markets saw GOPPAR surpass March 2019 levels,” Ortiz said.

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