Pre-COVID vs. post-COVID continues to be a key industry comparison. While a prior generation focused on the impact of 9/11, another industry black swan event imprinted on our industry’s psyche, today’s operators measure results against 2019, the pre-COVID high-water mark. The good news is that 23 of the top 25 U.S. markets have surpassed their 2019 RevPAR, according to CoStar, but simply relying on room revenue being back on track isn’t enough.
Though revenue has recovered, costs have risen sharply, including salaries and wages, construction and repair costs, real estate taxes and insurance premiums. One thing is certain: The post-COVID revenue peaks enjoyed at many hotels have been offset by costs increasing faster, wiping out potential income gains.
The challenge is clear, but what should be done when increasing expenses make it difficult to drive income despite strong revenue trends? One answer: Go beyond the rooms department and explore hidden or non-traditional sources of revenue that can help improve the bottom line.
The Usual Suspects
Some ancillary revenue sources are common in certain hotels. For example, guests expect to pay for parking at city hotels with shared garages or valet. However, suburban and rural hotels—even limited-service ones—might consider charging parking fees. These fees offer 100% flow-through to GOP and can be used as a negotiating point to be reduced or waived to help close the deal for groups and corporate accounts, potentially resulting in incremental room revenue. Resort fees, also known as destination or amenity fees, are another familiar source of added revenue in exchange for certain services appropriate to the situation. Hotels charging these should monitor competitors to ensure fees are appropriate and justified by value-added services. Those not charging can create amenity packages to support a fee in both resort and non-resort settings. A parking fee may be more palatable when presented to the guest as part of a destination fee. Other amenities might include upgraded Wi-Fi, a food-and-beverage credit, bicycle usage, bottled water or a cocktail upon check-in and tie-ins with the local community—anything that the guest perceives as adding value to the stay experience.
Food For Thought
Like parking and resort fees, F&B is a familiar revenue center for hotels. However, many hotels are leaving revenue on the table in this department, while creative operators have found new ways to drive revenue in their F&B spaces. Consider one example: A full-service hotel in a university market faced declining revenue when its largest group client, the local college, built on-site meeting spaces, reducing demand for meetings and accompanying meals at the hotel. The hotel invested in an insulated box truck to offer off-site catering to both the university and local community, enjoying a previously untapped source of revenue.
Like an unsold hotel room, a commercial kitchen that sits unused during off-meal periods is a missed opportunity. Food delivery services like DoorDash and Uber Eats present a revenue generating opportunity in the form of “ghost kitchens,” virtual restaurants without storefronts or dine-in options that operate solely through online orders. Multiple virtual brands can run from a single kitchen, generating revenue with the potential benefits of improving staff retention by virtue of additional steady hours available for scheduling.
Outside The Box
Beyond parking, destination fees and F&B opportunities, there are other creative revenue sources for hoteliers to explore. Although growth is slowing, electric vehicle (EV) sales in the U.S. reached about 7.5% of new-vehicle sales in Q1 2025, according to Cox Automotive. Turn-key EV charging solutions now let hotels offer on-site charging with minimal maintenance through shared revenue models.
Hotel sales teams have also found ways to monetize unique experiences, such as:
- Content creation studios equipped with custom tech, lighting and streaming tools for freelancers, influencers and remote workers to rent by the hour or day.
- Parking lot parties and group tailgates offering food, drinks and a festive atmosphere during major events. Hotels farther from venues can rent video boards to broadcast the action live.
- Using the hotel as a showroom where guests can purchase items in guestrooms, meeting spaces or lobbies via QR codes, generating revenue from direct sales or retail partnerships.
Whether through expansion of familiar sources like parking and resort fees, better utilization of existing facilities such as commercial kitchens during off hours or more outside-the-box ideas, there are areas of hotels waiting to be monetized. In the face of increasing costs, it is imperative that hoteliers uncover hidden revenue sources to enjoy higher income and better valuations while delivering stronger returns to investors.
Story contributed by Jay Burnett, chief investment officer, GF Hotels & Resorts, a Philadelphia-based hotel owner and operator.
