U.S. Hotel Profits Per Room Cratered to Losses in March
Photo Credit: Down 203 percent, New York City saw the steepest decline in hotel gross operating profits in March. The U.S. average was a 102 percent decline. Wikimedia / Fred Hsu
Skift Take
Gross operating profits tanked in March, and it could take until 2021 for them to get to levels where owners can satisfy operational costs and mortgage payments.
Gross operating profit per available room at U.S. hotels dropped nearly 102 percent in March, translating to an average 2 percent in losses, according to STR.
Coronavirus hotspots saw some of the worst drops in hotel profits. New York City had the steepest profit decline, with a 203 percent drop, followed by Chicago, at 201 percent, and Seattle, at 158 percent. Upper-upscale properties were the worst performing sector with a 108 percent decline in profits. The cratered performance comes as coronavirus precautionary measures keep travelers at home and hotel occupancy levels at record lows.
“The data is ugly, as to be expected. March is k
