STR: June U.S. GOPPAR down more than 100% from 2019

According to STR‘s latest monthly profit and loss data, U.S. hotel gross operating profit per available room declined 105.4 percent to -$5.89 in June from the same month in 2019. 

That year-over-year percentage change showed continued improvement from April (down 116.9 percent) and May (down 110.1 percent). Additionally, some full-service properties broke even with occupancy at 50 percent, one month after limited-service properties showed positive profitability on average when surpassing 45 percent occupancy. 

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In a year-over-year comparison with June 2019, the industry reported total revenue per available room declined 81.3 percent to $46.95; earnings before interest, income tax, depreciation, and amortization per available room declined 124.6 percent to -$20.85; and total labor costs per available room fell 59.6 percent to $31.21. 

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“Aligned with the rise we’ve reported in demand and occupancy, the profitability metrics picked up further with improvements across all revenue departments except [food-and-beverage],” said Raquel Ortiz, STR’s assistant director of financial performance. “On a per-available-room basis, revenue for full-service properties almost matched the level of limited-service. Overall, full-service GOPPAR was still negative although we did see some properties in that segment break even at 50 percent occupancy.”

Among top markets, the highest TRevPAR and GOPPAR levels were recorded in Tampa/St. Petersburg, Fla. (TrevPAR: $116, GOPPAR: $35) and Anaheim/Santa Ana, Calif. (TrevPAR: $110, GOPPAR: $28).

“Given the trends we’ve seen in occupancy data, it is no surprise that two beach-access markets would lead in overall profitability for the month,” Ortiz said. “Fortunately, all the top markets showed improved revenues in June, but Tampa and Anaheim were the only ones with positive [earnings before interest, taxes, depreciation and amortization] margins.”