Examining Changes in RevPAR, Profit in Past Recessions
A look at recession profitability during the last 11 recessions in the U.S. gives some context behind the expected profit declines during 2020 due to the coronavirus pandemic.
REPORT FROM THE U.S.—The U.S. hotel industry was prepared for a slowdown in performance entering 2020.
Resort Fees: A Growing Source of Revenue
While first introduced at resort properties, resort fees have become more prominent at non-resort hotels, drawing the ire of consumers. But just how much revenue do these fees contribute?
REPORT FROM THE U.S.—The 11th edition of the Uniform System of Accounts for the Lodging Industry (USALI) defines resort fees as “mandatory fees charged at either a flat amount or a...
Hotel Revenue Changes Suggest New Guest Preferences
Changes in guest preferences have evolved hotel stays and changed hotel revenue beyond rooms revenue, according to an analysis of hotel spending since the Great Recession.
REPORT FROM THE U.S.—From the high-tech preferences of Generation Z to the experiential fondness of millennials and the health and wellness realities facing baby boomers, hotels co...
Managing RevPAR for Profits
Hotel revenue managers have mastered the science of maximizing revenue. However, they are still learning to master the maximization of profits.
REPORT FROM THE U.S.—Per the name, the historical role of revenue managers has been to maximize revenue—specifically rooms revenue or revenue per available room. RevPAR growth is a...
Revenue Is Rising, but Collecting Is More Challenging
Hoteliers are losing out on revenue as more and more guests use credit cards when they travel.
REPORT FROM THE U.S.—According to STR, U.S. hotels achieved all-time high occupancy, average daily rate, and revenue per available room in 2018. While a record number of guests are...
Premium Performance Affects Flow-through in Boutiques
An analysis of 2017 performance data shows the occupancy and ADR premiums boutique hotels have over the rest of the hotel industry.
REPORT FROM THE U.S.—While boutique hotels comprised just 3.2% of the total U.S. lodging supply in 2017, boutique projects represented 17.8% of the rooms in the development pipelin...
Charting the Hotel Industry’s Recovery After 10 Years
An analysis of nominal and real rates shows when the hotel industry’s recovery started to occur and which hotel segments saw the biggest recovery.
REPORT FROM THE U.S.—Lodging is a cyclical industry, meaning that it passes over time through four distinct phases: peak, contraction, trough and expansion.
Contract, Non-management Employee Payrolls Rise in 2017
Total hotel operating revenue increased by 2% in 2017 while payroll costs increased by 1.8%, according to a CBRE study.
REPORT FROM THE U.S.—As the pace of revenue growth continues to decelerate for U.S. hotels, the capability of hotel operators to control costs will determine the ability of a prope...
How Investment in Training Varies by Hotel Department
Labor is the largest expense in the hotel industry, and that cost continues to grow. CBRE recently took a look at how much hoteliers invest in training to extract the most value out of the workforce.
REPORT FROM THE U.S.—In 2016, the average property in our “Trends in the Hotel Industry” survey sample spent 31.3% of its total revenue—or 42.8% of its total operating expenses—on ...
The Hotel Revenue Impact of Other Operated Departments
Miscellaneous revenue-generating sources have shown to be decreasing the size of their contributions to a hotel’s overall revenue since 2010.
REPORT FROM THE U.S.—In hotel industry jargon, other operated departments are frequently referred to as minor operated departments. Based on recent trends in other operated departm...
Revenue, Expense Shifts Improve F&B Profits
Changes in how hoteliers approach food and beverage, and consumer usage of those services, have altered the economics of hotel F&B.
REPORT FROM THE U.S.—Consumer dining trends tend to be more volatile than lodging trends. Recognizing this, hotel managers have made some significant changes in the way they offer ...
The Components of Hotel Payroll
With today’s political and economic landscape, there might be more pressure put on the components of labor costs rather than the benefits.
REPORT FROM THE U.S.—According to the Bureau of Labor Statistics, the average hourly compensation for a hospitality industry employee increased by 3.6% in 2016.
The Growing Expense of Hotel Management Fees
Management and incentive fees have been on the rise since 2010. Here’s how that has affected hotels’ bottom lines during that period.
REPORT FROM THE U.S.—The U.S. hotel industry’s recovery from the depths of the Great Recession was characterized by strong growth in rooms revenue (revenue per available room), con...
Paying the Intermediaries: A Look at Hotel Commissions
Commissions paid to third-party groups are a rising expense for the hotel industry. CBRE research takes a look at this as a percentage of rooms department costs.
REPORT FROM THE U.S.—The increasing incidence of intermediaries selling hotel rooms and other services is a major topic of discussion among U.S. hotel owners and operators.
Are Select-service Hotels With F&B More Profitable?
Select-service properties distinguish themselves by providing food-and-beverage services, but do the benefits outweigh the costs?
REPORT FROM THE U.S.—The definition of “select service” within the lodging industry might vary from person to person, but there is no doubt that properties in this segment are the ...
Controlling Rooms Department Expenses Is a Struggle
The cost per room, from labor to supplies, must be factored into any hotel profitability study.
REPORT FROM THE U.S.—Changes in rooms revenue per available room and RevPAR penetration receive a lot of attention from hotel managers. This is because the monies hotels receive fr...
A Look at Cost, Benefit of Comp Services, Rooms
As rates climb, hotel guests’ expectations for freebies go up, too. But what do the hotels get in return for offering complimentary rooms and services?
REPORT FROM THE U.S.—The offering of complimentary services and amenities by U.S. hotels is on the rise. From 2007 to 2015, hotel expenditures on complimentary food, beverages, in-...
Shopping for Profits: Retail Outlets Are More Efficient
Profits from retail sales operations represent just a small, but efficient, piece of overall hotel revenue.
REPORT FROM THE U.S.—Historically hotels have offered retail operations primarily for guest convenience and satisfaction, but an analysis of revenue from those operations shows the...
How Hoteliers Are Combating Rising Cost of Labor
One thing isn’t changing in the hotel industry: Labor is the largest expense. But hoteliers may have to change how they approach controlling that expense.
REPORT FROM THE U.S.—There a lot of “double-edged sword” issues on the minds of hotel operators these days. Hotel occupancy levels are at record levels, but that is attracting the ...
USALI Changes Show New Benchmarks
The latest changes to the Uniform System of Accounts for the Lodging Industry reflect new line items for reporting labor costs, a new place for resort fees and a new IT department.
Every 10 years or so, the Financial Management Committee (FMC) of the American Hotel & Lodging Association revises the Uniform System of Accounts for the Lodging Industry (USALI). ...