STR: ’22 U.S. hotel revenues, profits and labor costs reached record-highs

 Total U.S. hotel revenues, profits and labor costs reached an all-time high, according to STR‘s P&L data for 2022. With more supply in the market, the key profitability metrics each came in lower than their pre-pandemic comparable on a per-available-room basis.

2022 estimated totals
Revenue: $239.7 billion
GOP: $101.3 billion
EBITDA: $74.8 billion
Labor: $70.9 billion

2022 per-available-room metrics (% change from 2019)
GOPPAR: $73.70 (-5.5%)
TRevPAR: $202.23 (-4.3%)
EBITDA PAR: $52.20 (-5.6%)
LPAR (Labor Costs): $65.94 (-7.6%)

“Total revenues and profits surpassed 2019 levels due to strong demand, tremendous pricing power influenced by inflation and increased revenues from other departments,” said Raquel Ortiz, director, financial performance, STR. “The metrics also improved on a per-available room basis as the year went on. Labor costs grew at a compound monthly rate of 3.7% as hotels maximized their staffing hours and paid out more to contract workers. At the same time, that contract labor played into profit margin growth because of the savings realized in benefits. F&B revenues have yet to recover to 2019 levels, with catering & banquets as the laggard due to the gap in group and corporate demand.”

Seven of the major markets realized both GOPPAR and TrevPAR levels higher than the 2019 comparables.

“GOPPAR and TRevPAR have continuously improved across all major markets. Those at the top and bottom ends of the recovery scale have also stayed the same, with beach/warmer destinations at the top while more urban/business-centric markets remain at the bottom,” Ortiz said

 Tags: Raquel Ortiz, STR