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Log In / Register | Jul 21, 2017

Hotel Management Fees, A Growing Expense

The U.S. lodging industry recovery from the depths of the great recession was characterized by strong growth in rooms revenue (RevPAR), concurrent with strict cost controls.  This combination resulted in double-digit growth rates for profits from 2010 through 2014.  Starting in 2015, market conditions changed. 

Paying the Intermediaries: An Analysis of Hotel Commissions

The increasing incidence of intermediaries selling hotel rooms and other services is a major topic of discussion among U.S. hotel owners and operators.

Select-Service Hotels: Efficient and Profitable

The definition of "select-service" within the lodging industry may vary from person to person, but there is no doubt that properties in this segment are the most popular among developers.

Hotel Rooms Departments Struggle to Control Expenses

Changes in rooms revenue per available room (RevPAR), and RevPAR penetration receive much attention from hotel managers. This is because the money hotels receive from renting guest rooms is the major revenue source across all U.S. property types.

Hotels Give to Get an Analysis of Complimentary Services and Rooms

The offering of complimentary services and amenities by U.S. hotels is on the rise.

Hotel Retail Outlets Are Growing in Profit

Historically hotels have offered retail outlets primarily for guest convenience and satisfaction. In general, the revenue generated by hotel retail outlets represents only a small part of total hotel revenue.

Labor Is Laborious

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 attention of developers and therefore the threat of new competition.

Hoteliers Beat Budgeted Revenues and Control Costs

Hotel managers achieved the winning formula in 2015 – they exceeded their budgeted revenue projections while concurrently spending less than expected to operate their hotels. The result was a 2.2 percent profit surplus compared to budget.

USALI Changes Offer New Benchmarks

Every ten 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). The USALI serves as the industry standard for reporting hotel revenues and expenses.

Hotel Attrition and Cancellation Revenue

Historically, if a guest notified the hotel at 6 p.m. on the day of arrival that they would not be checking in, that was usually sufficient to waive any cancellation fees.