According to STR’s P&L data, hotel revenues, profits, and labor costs in the United States reached all-time highs in 2022. Because of increased market supply, key profitability metrics were each lower than 2019 figures 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 exceeded 2019 levels driven by robust demand, strong pricing power boosted by inflation and increased revenues from other departments, STR said. The metrics also improved on a per-available room basis as the year continued.
“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, 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 and banquets as the laggard due to the gap in group and corporate demand,” said Raquel Ortiz, STR’s director of financial performance.
Seven major markets reported both GOPPAR and TRevPAR levels higher than the pre-pandemic comparables.
GOPPAR and TRevPAR have seen continuous improvements in all major markets, Ortiz said. Those at the top and bottom ends of the recovery scale have remained the same, with beach/warmer destinations at the top while more urban/business-centric markets remain at the bottom.