Labor costs kept U.S. hotel GOPPAR down in June
U.S. hotel gross operating profit per available room (GOPPAR) fell year over year for a second consecutive month
Labor costs continued to rise year over year, growing nearly three times the rate of total revenue,” said Raquel Ortiz, STR’s director of financial performance. “That increase, tied with higher growth in other expense types, caused a profit decline from last June.
Key takeaways
- Thirteen of the Top 25 Markets saw GOPPAR levels below June 2022, with San Francisco showing the lowest index (at 52% of 2022 levels). Las Vegas was the only other market to report a GOPPAR index below 80% (at 68% of 2022 levels);
- Year to date through June, the Top 25 Markets were still $2 behind 2022 in GOPPAR and three percentage points behind the previous year’s GOP margin;
- Despite the year-over-year decline, the GOPPAR level was improved from May, and with cooling inflation, real GOPPAR and TRevPAR were up month over month for the first time since March.
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