Heightened group demand drives hotel profits

New York City and Dallas, cities experiencing a resurgence in group travel, led U.S. hotel markets in gross operating profit and total RevPAR in October

Dec 11, 2023

The top 25 markets - the markets in the U.S. with the highest hotel room count - showed an 11% jump in GOPPAR year to date in October despite a 14% lift in labor costs, Audrey Kallman, research analyst at STR, said in the report. Eight of the markets experienced double-digit GOPPAR growth.

Key takeaways

  • In October, the hotel industry saw its largest year-over-year increases in gross operating profit per available room and total RevPAR since March of this year, with GOPPAR up 3.7% and TRevPAR up 4%, according to a new report from CoStar.
  • New York City led all other U.S. markets in GOPPAR growth, up nearly 60% in October, the report details. Minneapolis, Atlanta, Dallas and Boston followed NYC in GOPPAR growth. Dallas took the top spot for TRevPAR growth.
  • Improvement in group demand across CoStar’s top 25 markets, also including Seattle, Denver, Nashville and Chicago, drove U.S. hotel revenue and profit growth in October, according to the report.

Get the full story at STR

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