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Automatic

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  • 2 min

Labor Cost per Occupied Room in U.S. Hotels Rose 12.8% in 2025, Outpacing Revenue Growth

📈 Mar 2026, U.S. hotels faced a labor cost increase, impacting profitability. Labor Cost per Occupied Room (CPOR) rose 12.8% in 2025, from $42.82 to $48.32. In Q4, CPOR increased 21.1% year-over-year, highlighting rapid cost escalation as demand declined. Hours per Occupied Room rose 4.4%. Wage pressures are structural, affecting profit margins. Housekeeping and engineering roles significantly boosted CPOR. Demand-aligned staffing is crucial for cost control. Source: HotelData.
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  • 7 min

Corporate Hotel RFPs Yield Low Success Rates, with Most Hotels Retaining Existing Contracts, Industry Analysis Reveals

🏨 Hotels face a daunting corporate RFP cycle every April, winning only 5-7% of bids compared to 44% in other sectors. They spend $40,100 annually on these processes, with sales teams dedicating 2-4 hours per RFP. In 2024, GDS surpassed direct channels for corporate bookings, while corporate travel spending reached $1.47 trillion. Despite handling $16.5 billion in sourcing volume, many RFPs go unanswered, highlighting inefficiencies and a preference for fixed rates over flexible pricing.
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