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WASHINGTON—Improvement in group demand across the Top 25 Markets drove U.S. hotel revenue and profit growth, according to October P&L data from CoStar.
October 2023
Per-available-room metrics
Percent change from October 2022
GOPPAR: $97.45 (up 3.7 percent)
TRevPAR: $240.74 (up 4.0 percent)
EBITDA PAR: $69.60 (down 1.2 percent)
LPAR (Labor Costs): $74.48 (up 5.9 percent)
The industry saw its largest year-over-year increases in GOPPAR and TRevPAR since March 2023.
“The Top 25 Markets have showed an 11 percent jump in GOPPAR 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. New York City, an obvious business-centric market, led growth in the metric across the major markets on both a year-to-date and monthly basis.”
Overall, eight of the Top 25 Markets reported double-digit increases in GOPPAR.
“Further evidence of the improvement in corporate demand, F&B labor costs on a per-occupied-room basis showed the largest year-to-date growth of any department,” said Kallman. “This aligns with weekday group performance rebounding across the topline.”