H otel profits have steadied worldwide, but for the Americas, the story is more complicated: Growth is slowing, costs are climbing, and margins are feeling the squeeze. HotStats data show that while the industry rebounded sharply from the pandemic lows of 2020, the latest figures reveal a clear plateau.
The Middle East currently leads the world in hotel gross
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operating profit per available room( GOPPAR) at $ 103.61, followed by the Americas at $ 92.78, Europe at $ 83.60 and Asia-Pacific trailing at $ 52.50, underscoring the uneven nature of the recovery. Although the Americas ranks second in profitability, it remains the only region yet to fully recover to 2019 levels, with growth showing clear signs of slowing.
Looking at year-to-date
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performance as of August 2025, both TRevPAR and GOPPAR increased across all regions and, in many cases, profitability outpaced revenue growth. The Americas, however, tell a different story, one of slowing growth and mounting costs. While total revenue rose 3.2 %, GOPPAR increased by only 1.9 %, with profit margins slipping 0.4 points.
The region’ s year-to-date
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flow-through sits at 20 %, meaning that for every additional dollar of revenue, only 20 cents translates into profit. Of the remaining 80 cents in expenses, 6 % went to cost of sales, 53 % to payroll and 21 % to other expenses, including a notable 4.8 % increase in utility costs.
SEGMENT TALK A closer look at U. S. brand scales shows that most are
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78 hotelsmag. com November 2025 |