Hotels pivot to profit discipline as revenue underperforms
📈 U.S. hotels faced a challenging 2025 with RevPAR averaging 9% below budget due to weaker ADR and slower recovery. But GOP margin stood at 37.7%, just 1.2 points under budget, thanks to better labor controls and frequent forecasting. Upper midscale and upscale hotels led in GOP, with Hawaii, California, New York, and D.C. outperforming in RevPAR. In 2026, operators will focus on real-time forecasting and labor-flex models for improved accuracy and profitability.
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