Hotel Profitability Improves, But Labor Costs Rise: STR 

Originally published on November 8, 2022, by Michael Tucker for the Mortgage Bankers' Association.

U.S. hotel gross operating profit per available room improved in September and now exceeds the pre-pandemic comparable, said STR, Hendersonville, Tenn. But the STR P&L data release for September noted the cost of labor per available room came in higher than the pre-pandemic comparable for the first time.

“[September] gross operating profit per available room was the strongest since June 2022, and profit margins came in higher than September 2019,” said Raquel Ortiz, STR Director of Financial Performance. “Profit margins have been strong for some time caused by lower employment levels and reduced services.”

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