U.S. hotel industry profits grew in 2024, but increased labor costs and inflation limited growth, according to P&L data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
2024 per-available-room metrics (% change from 2023)
- GOPPAR: US$73.60 (+3.2%)
- TRevPAR: US$209.67 (+7.2%)
- EBITDA PAR: US$51.88 (+2.5%)
- LPAR (Labor Costs): US$72.44 (+11.2%)
“Growth in total operating expenses, especially labor, has had the biggest impact on profits,” said Raquel Ortiz, senior manager of financial performance at STR. “GOPPAR continued to slow at the end of the year with growth below the rate inflation. On the positive side, demand growth has been key to driving total revenues, which have been the best defense against high expenses and allowed for hotels to increase profits, albeit minimal. An increase in groups have helped improve F&B revenues, but not enough to mitigate the labor cost growth that has impacted margins.”
Among the Top 25 Markets, Miami posted the greatest difference in GOPPAR (+$12) and TRevPAR (+$27). Oahu realized the largest drops in both metrics, likely due to lower demand caused by the labor strikes.
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