U.S. hotel total revenue per available room (TRevPAR) was the highest for any month on record, according to STR‘s March 2023 P&L datarelease.
March 2023 per-available-room metrics (% change from March 2022)
- GOPPAR: US$95.12 (+14.5%)
- TRevPAR: US$238.22 (+17.5%)
- EBITDA PAR: US$71.07 (+14.4%)
- LPAR (Labor Costs): US$74.43 (+23.4%)
“Revenues and profits improved for a second consecutive month with each of the key profit-and-loss metrics showing double-digit growth year over year,” said Raquel Ortiz, STR’s director of financial performance. “The increase in TRevPAR prevented labor costs from placing further pressure on GOPPAR. Profit margins continue to be strong even with those increased labor costs as total revenues are growing and other expenses are being managed through reduced services, lower employment levels and adjusting operations.”
While each of the Top 25 Markets saw GOPPAR levels above March 2022, Los Angeles was the only major market to realize a TRevPAR level lower than that comparable.
“The strongest performing markets when compared to 2019 are now realizing less improvement year over year,” Ortiz said. “Group-dependent markets are now at the top, with New York City showing the highest GOPPAR gain on March 2022. Overall, there are no longer any top markets with negative TrevPAR or GOPPAR comparables.”
Key profitability metrics:
TRevPAR – Total revenue per available room
GOPPAR – Gross operating profit per available room
EBITDA – Earnings before interest, income tax, depreciation, and amortization
LPAR – Total labor costs per available room
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets. For more information, please visit str.com and costargroup.com.