The Margin Defense Strategy: Why Operational Efficiency is Your Competitive Advantage
💸 At The Lodging Conference in Phoenix last month, leaders highlighted stagnant revenues and rising expenses. ADR lagged inflation in 23 of the last 36 months, with GOP per available room down 3.6% year-to-date, per CBRE. Utility costs are a major concern; water conservation can reduce consumption by 25%-40%, natural gas by 15%-25%, and electricity by 20%-30%. Rebate programs like SoCalGas Hotel Program offer $250 per guestroom. Federal tax deductions can cut implementation costs by over 50%.
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