STR reported some positive news on the domestic hotel front in its monthly P&L data release, noting that the September gross operating profit (GOP) margin of 11.9 percent and rose to 17. 9 percent in October, STR said.
"There were positives in the profitability data even as occupancy flattened and the extension of the summer leisure lift came to an end," said Audrey Kallman, operations analyst at STR. "GOP margin increased 6 percentage points from September, and certain location types reported encouraging data - GOPPAR [gross operating profit per available room] for airport hotels was nearly three times higher than the previous month, and interstate properties drew close to pre-pandemic levels.
"On the negative side, a lack of group business continued to stand out with Upper Upscale hotels showing the lowest GOPPAR among the classes. October is usually a strong month for conferences and events, but without those significant demand generators, GOPPAR for Upper Upscale properties came in more than $100 lower than this time last year."
Henderson, Tenn.-based STR provides market data for the global hotel industry.
While 2020 has been a challenging year, it's encouraging to see a positive sign like this for hotels and the travel industry.
As the holiday travel season continues, it will be interesting to see what results come from November and December to finish out the year.
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