U . S . GOP Margin by Brand Scale - Jan-Jul : 2021 , 2022 and 2023
50
40
30
20
10 0
49.0 % 48.8 % 45.5 %
Midscale & Economy
38.9 % 42.6 % 41.3 %
Upper Midscale
32.6 % 39.4 %
Upscale
38.5 %
2021 2022 2023
27.6 %
GOPPAR , Total Labor Costs PAR and TRevPAR % Change Jan - Jul : 2023 vs 2022
Luxury
Upper Upscale
Upscale
Upper Midscale
Midscale & Economy -3.7%
0.8 %
2.9 %
9.5 %
9.6 %
9.0 %
13.1 %
15.2 %
17.3 %
17.6 %
17.8 %
39.8 % 38.9 %
Uppe Upscale
TRevPAR Total Labor PAR GOPPAR
TRevPAR % Change vs GOP Margin % Change Jan - Jul : 2023 vs 2019
40 %
30 %
20 %
10 %
0 %
-10 %
-20 %
-30 %
-40 %
MA
WA
PA
IL
CA
NY
GA
LA
OH
TX
FL
20.5 %
22.3 %
22.4 %
AZ
29.9 % 36.6 %
Luxury
-15 % -10 % -5 % 0 % 5 % 10 % 15 % 20 % 25 % 30 % 35 % TRevPAR % Change
33.7 %
28.2 % that tracks the percentage change in two key dimensions : TrevPAR ( measured on the horizontal x-axis ) and GOP margin ( measured on the vertical y-axis ). The results are based on state-level data for New York ( NY ), Pennsylvania ( PA ), Massachusetts ( MA ), California ( CA ), Texas ( TX ), Illinois ( IL ), Florida ( FL ), Georgia ( GA ), Ohio ( OH ), Louisiana ( LA ), Arizona ( AZ ) and Washington ( WA ). Our objective is to see not only how revenue and margins evolved as separate performance indicators , but also the interaction between revenue generation and conversion to profit .
Figure 3 shows the percentage difference in the two dimensions for the period January through July 2023 compared to 2019 , as a way to visualize where each state stands in terms of recovery to pre-pandemic levels . Only three states in the sample achieved a higher TRevPAR in 2023 than in 2019 : Texas , Florida and Arizona . The key difference between these three is that while Florida and Arizona were also able to grow their margins , Texas was not , which points to a flow-through problem in the Lone Star State . The rest of the sample is still below 2019 in terms of revenue generation , but New York stands out as a flex success : the only state in this group that managed to grow its profit margin despite the top-line contraction .
Figure 4 is the same matrix but using 2022 as the base year instead of 2019 . Notably , all the states achieved YOY TRevPAR growth , so the states are only divided by whether they were also able to increase their margins or not .
A closer look at the pattern of TRevPAR growth shows that most states that are behind when compared to 2019 exhibited the greatest YOY increase . Illinois , New York , Pennsylvania and Washington . This is propitious news for these relegated states , as 2023 is marking the start of the path towards top-line recovery . In the case of Florida , even though its TRevPAR growth is significant compared to its pre-pandemic level , the YOY increase was much more subdued and signals a plateauing of its
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