U.S. hotel profits grew in 2024 but were limited by inflation and labor costs

ARLINGTON, Va. – 14 February 2025 – 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. 

For more information about the company and its products and services, please visit www.costargroup.com. 

Industry stakeholders interested in Monthly P&L participation should contact MonthlyPnL@STR.com. Those interested in subscribing to reports should contact their account manager or info@STR.com.

Key profitability metrics:

TRevPAR - Total revenue per available room
GOPPAR - Gross operating profit per available room
EBITDA - Earnings before interest, income tax, depreciation, and amortization
LPAR - Total labor costs per available room

Additional Performance Data
CoStar’s world-leading hotel performance sample comprises more than 86,000 properties and 11 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.

News Media Contact
Haley Luther
Senior Communications Manager – STR 
(216) 278-0627
hluther@str.com 

About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, and online marketplaces. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. 

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands include STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.