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Log In / Register | Mar 28, 2017

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.

Boutique Hotels Buck Trends with Food and Beverage

For the past several years, limited- and select-service hotels have been extremely popular among hotel developers. According to STR, Inc. 80 percent of the properties (70 percent of the rooms) that opened in 2015 did not offer a restaurant.

Credit Cards: Greater Risk, Greater Use

The use of credit cards has increased dramatically over the past few years. Not only are transient guests using credit cards to pay for their guest rooms and incidentals, but group and event planners are now paying their master bills for conventions and banquets with a credit card.

Hotel Spa Departments Follow Industry Trends

Coming out of the great recession, U.S. hotel operators struggled to earn revenue from sources other than the rental of guest rooms. However, in 2014, we began to see guests spend their money in other areas of the hotel. According to the 2015 edition of Trends® in the Hotel Industry, rooms revenue increased by 7.3 percent in 2014. Concurrently, revenue within the food and beverage and other-operated departments grew by 6.2 percent.