Robert Mandelbaum John Pomposello and Adam Barry

📈 U.S. hoteliers in 2025 are managing expenses amid limited revenue growth, with IT department costs rising 4.6% from 2023 to 2024, outpacing the 4% increase in total hotel expenses. In 2024, IT labor costs grew by 3.8%, while phone and Internet service costs declined by 1.7% and 1%, respectively. With average hotel occupancy at 70.2% and ADR at $208.74, hoteliers are leveraging vendor consolidation to achieve savings, identifying $1 million in annual savings for a 120-hotel group.

💻 In 2023, U.S. hotels' operating efficiency dwindled as expenses outpaced revenue growth, averaging 216 rooms with 69.6% occupancy and $213.39 ADR. CBRE's study of 4,121 properties revealed IT costs at 1.4% of total operating revenue. IT expenses grew by 7.4%, with operated department system expenses up 16.9%, payroll-related up 14%, and salaries and wages up 10.8%. Phone service costs decreased by 13.2%. Resort and convention hotels had the highest IT costs due to guest-facing technologies and diverse services.