Hotel Industry Shifts Focus to Profitability as Operating Costs Outpace Revenue Growth, According to Industry Leaders
💸 In January, at the Americas Lodging Investment Summit in Los Angeles, Elie Maalouf, CEO of IHG Hotels & Resorts, highlighted the challenges of an asset-light strategy. Hotel expenses above gross operating profit rose by 4.1% in 2024, while total revenue grew only 2.4%. From 2024 to 2025, TrevPAR increased by 3.6%, but costs for credit card commissions, IT systems, and other areas rose over 5%. Duetto emphasizes profit strategies, with RevPAR growth at 19% over six years against rising booking and labor costs.
Share
