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Hotels lock in productivity gains, make do with fewer workers even as room demand rises

To support elevated revenue, hotels pay higher wages to smaller staffs
Despite the staffing challenges, the hotel industry has continued to drive ADR and room demand, thereby increasing total revenue. (Jeffrey Greenberg/Universal Images Group via Getty Images)
Despite the staffing challenges, the hotel industry has continued to drive ADR and room demand, thereby increasing total revenue. (Jeffrey Greenberg/Universal Images Group via Getty Images)
CoStar Analytics
June 17, 2026 | 9:37 P.M.

The U.S. hotel industry has steadily increased revenue per employee over the last year by retaining smaller staff sizes and resorting to paying higher wages and increasing the average daily rate.

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