Clever New Way Hotels Will Charge More For The Same Room

Thanks to new 'attribute based' technology, there’s no escaping that the sales process for hotel rooms will change more in the next two years than in the last 25.

U.S. hotel GOPPAR highest since October 2022

U.S. hotel gross operating profit per available room (GOPPAR) exceeded the pre-pandemic comparable and was the highest since October 2022, according to STR‘s February 2023 P&L data release. EBITDA was the only key bottom-line metric on a per-available-room basis to come in lower than February 2019.

• GOPPAR: US$77.37 (+1.6%)
• TRevPAR: US$217.20 (+3.7%)
• EBITDA PAR: US$51.63 (-0.6%)
• LPAR (Labor Costs): US$73.70 (+2.9%)

STR: U.S. hotel results for week ending 1 April

Aligned with normal spring break patterns, U.S. hotel performance showed mix comparisons from the previous week, according to STR‘s latest data through 1 April.

• Among the Top 25 Markets, Washington, D.C., saw the highest year-over-year increase in occupancy (+18.2% to 78.7%), while Dallas saw the highest occupancy lift over 2019 (+6.2% to 73.0%).
• Houston showed the most substantial ADR growth year over year (+25.8% to US$133.50), while Phoenix reported the highest ADR increase over 2019 (+49.4% to US$232.54).
• Las Vegas reported the highest RevPAR increase when measuring against 2019 (+49.8% to US$168.41), while Washington, D.C., registered the largest year-over-year increase in the metric (+44.1% to US$165.44).
• The steepest RevPAR declines from 2019 were seen in Minneapolis (-37.4% to US$66.73) and San Francisco (-27.5% to US$123.96). New Orleans reported the largest RevPAR decrease year over year (-26.4% to US$125.83).

25 March - 1 April 2023 (percentage change from comparable weeks in 2022, 2019):

• Occupancy: 66.2% (+3.4%, -3.5%)
• Average daily rate (ADR): US$158.40 (+7.3%, +19.9%)
• Revenue per available room (RevPAR): US$104.78 (+10.9%, +15.7%)