Labor Cost Per Available Room (LPAR)
LPAR is total labor cost divided by room nights available, providing a per-room measure of labor spend. STR's P&L reporting guidance describes LPAR and provides its formula.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Asset management; efficiency benchmarking
- Property types
- Hospitality
In practice
LPAR is a key diagnostic when RevPAR is stable but margins compress; it helps isolate cost-side drivers.
Related terms
Operating Performance Metrics
- Average Daily Rate (ADR)
- EBITDA Per Available Room (EBITDA PAR)
- Gross Operating Profit Per Available Room (GOPPAR)
- Load Factor (Common Area Factor / Loss Factor)
- Net Effective Rent (NER)
- Occupancy Cost
- Occupancy Cost Ratio
- Rentable Area
- Revenue Per Available Room (RevPAR)
- Sales per Square Foot
General information, not legal, tax or financial advice.