STR March P&L Data: GOPPAR Fell 101.7 Percent

BROOMFIELD, Colo. — U.S. hotel gross operating profit per available room (GOPPAR) fell 101.7 percent during March 2020, according to the first-ever monthly P&L data release from STR.

In a year-over-year comparison with March 2019, GOPPAR fell 101.7 percent to negative $2.10, total revenue per available room (TRevPAR) fell 64 percent to $104.93, EBIDTA earnings before interest, income tax, depreciation, and amortization per available room (EBIDTA PAR) fell 116.8 percent to negative $15.44, and total labor costs (LPAR) fell 31.2 percent to $66.16.

March 2020 vs. March 2019

 

GOPPAR: -101.7% to -$2.10
TRevPAR: -64.0% to $104.93
EBIDTA PAR: -116.8% to -$15.44
LPAR: -31.2% to $66.16

“Our first U.S. monthly P&L release really could not have been timelier, given the unprecedented crisis the industry is facing amid the coronavirus pandemic,” said Joseph Rael, STR’s senior director of financial performance. “As reported via our traditional metrics, occupancy, room rates, and RevPAR have plummeted at alarming rates with the virtual standstill of business, travel, and leisure activity. As expected, this profitability data is very much aligned with the developing trend in RevPAR.

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“Just a few months ago, we were talking about 2020 being a challenging year for profitability given flattening occupancy levels and a lack of hotelier pricing power. Now we’re at a point where thousands of properties have closed around the country due to their inability to operate at any level of profitability,” Rael added.

Among top markets, New York reported the steepest GOPPAR decline (down 203 percent), followed by Chicago (down 201.4 percent) and Seattle (down 158 percent).

At a class level, upper-upscale properties saw the worst decrease in GOPPAR (down 108.1 percent).

STR March 2020
Credit: STR

“We’ve partnered with the industry for more than three decades, and this next-generation solution from STR is going to arm hoteliers with an added benchmarking tool for this unprecedented period, as well as for when performance recovery ramps up,” Rael said. “With the world’s largest hotel performance database, we are uniquely positioned to scale this product globally across the industry. Our STAR reports have set an industry standard for the key performance metrics, now we’re working to provide hoteliers with a STAR report for their entire P&L.”

 


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