May 5. In the strongest indication about the recovery of the domestic US hotel sector, STR, Inc released data indicating that total revenue for U.S. hotels reached 50 percent of the comparable 2019 level, according to STR‘s March 2021 monthly profit and loss data release. (STR is a division of the CoStar Group that provides market data about the performance of the hotel industry worldwide),
Gross operating profit per available room; total revenue per available room; and earnings before interest, income tax, depreciation and amortization per available room came in higher than any month since February 2020:
Labor costs, meanwhile, reached $27.66—60 percent of the figure reported for March 2019. The report noted “hiring difficulties” in the industry.
“We have seen continued improvement in room revenue, but with little coming in from [food-and-beverage] and other departments, industry TrevPAR is not gaining as much steam,” said Raquel Ortiz, STR’s assistant director of financial performance.
Fortunately, not all hotels are struggling, according to Ortiz.
“Hotels with enough demand to achieve occupancy levels above 50 percent have been able to turn a profit. This is especially true for the limited-service segment, where 68 percent of hotels have remained profitable,” she said.
Source: Hotel Management