BROOMFIELD, COLORADO - U.S. hotel gross operating profit per available room fell 116.9% during April 2020, according to the latest monthly P&L data release from STR.
In a year-over-year comparison with April 2019, the industry reported the following:
- GOPPAR: -116.9% to US-$17.98
- TRevPAR: -92.9% to US$17.39
- EBIDTA PAR: -140.2% to US-$32.30
- LPAR (Labor Costs): -72.8% to US$20.80
“Whereas only the later portion of March was affected, April was the country’s first full month in the COVID-19 world, and the impact on U.S. hotel profitability was historic,” said Joseph Rael, STR’s senior director of financial performance. “As we have reported, occupancy levels hit the floor near the middle of the month, leaving many properties positioned to lose money by keeping their doors open. That led to more than 5,100 temporary closures around the country.”
Among top markets, Houston reported the steepest year-over-year GOPPAR decline (-135.3%), followed by Chicago (-134.6%) and San Francisco/San Mateo (-133.6%).
At a class level, luxury properties saw the worst decrease in GOPPAR (-124.5%).
“As we’ve noted in our weekly performance releases, occupancy and ADR levels have trended upward over the last six weeks into late May,” Rael said. “It will be interesting to monitor how much revenue outside of room sales will come in when we process profitability metrics next month.”
Tags: STR
