Los Angeles hotels are facing continued margin compression in 2025, as shown by the steady decline in both gross operating profit (GOP) and earnings before interest, taxes, depreciation and amortization (EBITDA) as a percentage of revenue. GOP margins have dropped to 20% year-to-date through April 2025, down from 22% during the same period in 2024 and 29% in the pre-pandemic benchmark year of 2019. EBITDA margins have followed a similar trajectory, falling from 21% in 2019 to just 11% in the latest 2025 snapshot.
Los Angeles hotel profit margins tighten
Rising labor costs and operational headwinds continue to erode hotel profitability
CoStar Analytics
July 17, 2025 | 7:04 P.M.
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