U.S. hotel GOPPAR declined in May

Decline primarily due to weak revenue growth coupled with substantial labor costs, according to STR‘s May 2023 data

Jul 7, 2023

In May 2023, GOPPAR declined by 2.6 percent to $83.86 compared to the same month in 2022, according to STR. TRevPAR increased by 4.1 percent to $222.78, while EBITDA PAR decreased by 7.1 percent to $61.16. Labor costs saw a significant rise, reaching $72.82, reflecting a 13.6 percent increase.

Key takeaways

  • Weak revenue growth tied with strong labor costs caused GOPPAR to decline year-over-year for the first time in 16 months;
  • The increase in labor costs was nearly three times that of revenue, but despite this, profit margins continue to rise due to higher total revenues and managing expenses through reduced services, lower employment levels and changes in operation;
  • Strong demand and revenue growth is expected for summer, likely to counter some of the expenses seen in late spring.

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