“The top 25 markets have shown an 11 percent jump in gross operating profit per available room year-to-date, despite a 14 percent lift in labor costs,” said Audrey Kallman, research analyst at STR. “That double-digit GOPPAR growth was more than 10 times the level seen in all other markets.”
Across all markets, GOPPAR was up 3.7 percent year over year, and total revenue per available room shot up by 4 percent — the highest increases seen by the U.S. hotel industry since last March. Labor costs also were up — by 5.9 percent from a year ago.
On a per-room basis, F&B labor costs went up more year-to-date than any other department — providing further evidence of corporate demand, according to Kallman. "This aligns with weekday group performance rebounding," she added.
Market Performance
Eight of the top 25 markets reported double-digit GOPPAR increases, led by New York City, on both a year-to-date and monthly basis. Profit among Big Apple properties was up more than 50 percent year-over-year.
The eight major markets to experience double-digit GOPPAR growth in October were, in order:
- New York City
- Minneapolis
- Atlanta
- Dallas
- Boston
- Oahu, Hawaii
- Seattle
- Denver
