Heightened group demand drives hotel profits

New York City and Dallas, cities experiencing a resurgence in group travel, led U.S. hotel markets in gross operating profit and total RevPAR in October

The top 25 markets - the markets in the U.S. with the highest hotel room count - showed an 11% jump in GOPPAR year to date in October despite a 14% lift in labor costs, Audrey Kallman, research analyst at STR, said in the report. Eight of the markets experienced double-digit GOPPAR growth.

Key takeaways

• In October, the hotel industry saw its largest year-over-year increases in gross operating profit per available room and total RevPAR since March of this year, with GOPPAR up 3.7% and TRevPAR up 4%, according to a new report from CoStar.
• New York City led all other U.S. markets in GOPPAR growth, up nearly 60% in October, the report details. Minneapolis, Atlanta, Dallas and Boston followed NYC in GOPPAR growth. Dallas took the top spot for TRevPAR growth.
• Improvement in group demand across CoStar’s top 25 markets, also including Seattle, Denver, Nashville and Chicago, drove U.S. hotel revenue and profit growth in October, according to the report.

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