In 2020, U.S. hotels suffered the worst year of operating performance since CBRE began tracking profitability in 1938. During the year, the average hotel in CBRE’s monthly survey of U.S. operating performance experienced a 78 percent decline in Gross Operating Profits (GOP) and achieve the lowest GOP margin (19.7%) over the past 82 years. While hotels may have earned enough revenues to cover their direct operating expenses, it is likely that the average hotel did not generate any cash from operations to cover their debt service.
