Accordign to STR’s October 2021 data, U.S. hotel profitability increased from the previous month on a per-available-room basis but was down compared to 2019 levels
All of the key profitability metrics increased compared to September. It is important to note that October is historically a higher revenue month:
EBITDA PAR: US$44.14
LPAR (Labor Costs): US$52.17
“October is usually a stronger revenue month due to conferences and group travel. When you extrapolate and bring in the comparison to pre-pandemic times, performance was lower. Fortunately, even with less corporate business this year, profit margins (38%) still came relatively close to what we saw in 2019 (40.9%),” Raquel Ortiz, STR’s assistant director of financial performance.
Dubai Hospitality October Performance Surpasses 2019 Figures:
Dubai hospitality has been making rapid strides towards complete recover, with its October 2021 figures surpassing 2019 figures.
Estimated gross operating profit per available room (GOPPAR) for October 2021 in Dubai came in at 159% of the 2019 comparable according to STR‘s October 2021 monthly P&L data release.
The things that may have contributed a great deal to the impressive October performance were Expo 202 and ICC Men’s T20 Cricket World Cup 2021. Dubai’s GOPPAR reached $178, while total revenue per available room (TrevPAR) was $316.
The other two key markets in the Middle East and Africa region, Saudi Arabia and Qatar, did not reach 2019 GOPPAR levels, but still realized strong profits. Saudi Arabia’s October GOPPAR (US$42) came in at 80% of October 2019 levels, while Qatar (US$49) was at 79% using the same time comparison.