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Sarah McCay Tams

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  • 5 min

U.S. Hotel Labor Costs Rose 1.8% in Q1 2026; Productivity Gains Offset Cost Pressure in Frontline Roles

🏨 U.S. hotel labor costs rose 1.8% in Q1 2026, with CPOR increasing from $45.96 to $46.79. HPOR decreased by 2.3%, from 2.154 to 2.105 hours. Wage increases: general managers 5.9%, room attendants 4.3%, maintenance engineers 3.6%. Room attendant CPOR declined 0.2%, general manager CPOR increased 4.1%. Select-service HPOR decreased 4.2%, full-service decreased 2.3%. Room attendant overtime increased 10.3%. ADR rose 6%, RevPAR 8.7%, GOP margin improved by 4 points.
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U.S. Hotels See Q1 2026 Increase in ADR by 6% and RevPAR by 8.7%, Forecast Cautious for Year-End

📈 U.S. hotels saw a robust start in 2026 with a 6% rise in ADR to $202.63 compared to Q1 2025. RevPAR grew 8.7%, TrevPAR 9.4%, and occupancy increased to 64.3%. Luxury hotels led with a 9.4% RevPAR increase, while economy hotels struggled with a 9.7% ADR drop. TrevPAR highlighted a 35% revenue premium over rooms alone. Forecasts for Q2-Q4 2026 anticipate a 1.3% decline in RevPAR and a 2.6% drop in TrevPAR.
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  • 4 min

HotelData.com Reports 21.1% Increase in Q4 2025 Wage Costs per Occupied Room, Highlighting Labor Cost Pressures

📈 In Q4 2025, Wages Cost per Occupied Room (CPOR) surged by 21.1% year-over-year, with the average labor CPOR rising from $42.82 in 2024 to $48.32 in 2025. Full-service hotels saw a 23.8% CPOR increase, while resorts reduced CPOR by 4.7%. Labor productivity fell, with Hours per Occupied Room (HPOR) increasing by 4.4% for the year. The GOP margin rose by 1.1 percentage points but dropped by 3.3 points in Q4.
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