Revenue Management

This article was written by Lodging Magazine. Click here to read the original article LAS VEGAS, Nevada—MGM Resorts International reported its financial results for the quarter ended June 30, 2026. “MGM Resorts once again demonstrated the strength of our diversified portfolio with record second-quarter consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best Regional Operations same-store quarterly revenue, and 20 percent year-over-year revenue growth at MGM Digital,” said Bill Hornbuckle, president and chief executive officer of MGM Resorts International. “Alongside this momentum in our existing…

⚽ Kansas City, MO, experienced the largest increase in Average Daily Rate (ADR) during the FIFA World Cup match days in US host markets. While ADR saw significant changes, occupancy rates fell short because corporate groups either held events elsewhere or rescheduled them for after the World Cup. This decline in corporate bookings was not completely compensated by leisure fans visiting the host cities on game days.

💼 "Who?" Global Business Travel Association and ALTOUR. "When?" 2026-2027. "Where?" Alexandria, Va. "What?" Business travel prices are expected to stay high until 2026, moderating in 2027. Airfares rise 4.7% in 2026; economy fares up 8.7%, premium 9.5%. Hotel rates increase 3.7% in 2026, 1.8% in 2027. Ground transportation rates rise 3.6% in 2026. Meetings and events costs rise 3% in 2026. "How?" Energy prices, labor costs, aircraft supply constraints drive price increases.

🏨 Aimbridge Hospitality EMEA's revenue rose by 4.7% with a 4.8% RevPAR increase in the first half of 2026, surpassing market benchmarks. They focused on maintaining room rates over occupancy and reduced payroll costs by 0.7 percentage points. Strategic energy pre-purchasing and data-driven insights helped counter economic challenges. Daniel Kemp and Will Bishop emphasized adaptability and corporate travel growth as key strategies in a volatile market, demonstrating resilience and effective cost management.

🏨 U.S. hotel performance in June 2026 showed significant year-over-year growth, driven by the World Cup. San Francisco/San Mateo recorded the highest occupancy increase (+7.9% to 80.5%) and RevPAR growth (+31.2% to $212.87), with ADR rising by 21.7% to $264.42. Miami saw the highest ADR jump (+23.2% to $218.37). CoStar’s global hotel sample includes 95,000 properties and 12.2 million rooms. CoStar Group, founded in 1986, is headquartered in Arlington, Virginia.

🍳 Food and drink prices increased by 1.8% in June, according to the latest Foodservice Price Index from NIQ and Prestige Purchasing. This rise comes after a decrease in May, highlighting ongoing procurement challenges. Structural supply issues and unpredictable weather are affecting costs, despite recent drops in global energy prices.

💸 Wyndham Hotels & Resorts reported a 2% U.S. RevPAR increase in Q2 2026. System-wide rooms grew by 4%, excluding Revo Hospitality. The development pipeline reached 261,000 rooms, with a 30% FeePAR premium. Net income rose 17% to $102 million, and adjusted EBITDA increased 9% to $212 million. $91 million was generated in operating cash, with $86 million returned to shareholders. Wyndham operates approximately 9,200 hotels in over 95 countries with 110 million loyalty members.

📈 Parsippany, New Jersey, Q2 2026: Wyndham Hotels & Resorts reports a 2% U.S. RevPAR growth, with system-wide room growth at 4%, excluding Revo Hospitality Group. Net income rose 17% to $102 million, and adjusted EBITDA increased 9% to $212 million. The development pipeline reached 261,000 rooms. Global RevPAR decreased by 1%, with international decline due to geopolitical and regional issues. The company returned $86 million to shareholders through buybacks and $0.43 dividends per share.

📈 Canada’s hotel industry faced its first decline in monthly occupancy since December 2025 as of June 2026. In Nova Scotia, ADR increased by 15.7% to CAD270.46 and RevPAR by 20.2% to CAD228.22, driven by the Canada Sail Grand Prix. Newfoundland and Labrador saw a 4.6% boost in occupancy (86.4%) due to the Iceberg Festival. Vancouver had a 21.3% ADR increase (CAD406.34), while Montreal had a 6.9% rise in occupancy (78.5%) but a 16% drop in ADR (CAD257.89). Toronto's RevPAR grew by 10.4% (CAD247.18) amidst World Cup matches.

📈 Costs in the U.S. hotels rise by 4% annually while GOP margins decline. With 10 hotels, diverse commission structures and marketing budgets create inconsistencies, hiding true acquisition costs per channel. Groups identifying and solving this issue focus on per-channel visibility, revealing unprofitable channels and adjusting strategies accordingly. Three recommended steps: calculate acquisition costs for one hotel manually, compare channel contribution with RevPAR, make data-driven channel decisions. CEOs can improve margins by optimizing existing demand.

🍴 Fine dining and hotels in the UK excelled in June by increasing productivity, generating higher revenue with fewer labor hours. This trend raises concerns about workforce wellbeing and service sustainability. The hospitality market showed polarization, with premium and experience-driven segments outperforming, unlike value-led dining and certain pub and bar operators.

🏨 A guest in Southern Spain, unaware of a spa, missed a booking opportunity, highlighting a 31% utilization rate. A 200-room hotel at 75% occupancy could boost ancillary spend from €50 to €100 per guest, yielding €4.1 million annually. Renaming "late checkout fee" to "relaxation extension" increased revenue by 30%. Bars closed at 22:00 while demand peaked at 22:30. Timing and language are crucial for transforming hotels into revenue platforms, emphasized by phases to enhance guest experience and revenue.

💰 Spain vs. Argentina marks the finale of a series on pricing strategies. Key takeaway: focus on profit, not just revenue. Since 2019, the industry's revenue per room rose 19%, but costs surged 25%. Up to 40% of revenue growth now comes from non-room sources like food and events. RevPAR can mislead if acquisition costs outweigh gains. To succeed, score what you keep, considering total guest spend, akin to goals in football. Aim for profit, not just revenue.

🍴 In Longyearbyen, Svalbard, Huset is the world’s northernmost fine dining restaurant, originally built in 1951. It features a 14-course Arctic tasting menu and a wine cellar with over 1,000 titles. Recently transformed by Snøhetta, the interior blends stained oak and Swedish pine. Head chef Alberto Lozano emphasizes local ingredients and Nordic preservation techniques, offering dishes like Reindeer charcuterie and Ptarmigan pâté.

📅 Minor Hotels saw a 143% rise in Middle East bookings in late June, mainly for Q3 2026. International demand from the UK, Germany, and Russia surged by 575%. The ADR for Q3 is up 17.1% year-on-year. Room revenues during Eid Al Adha increased by 23% compared to 2025. The group, with 26 properties, is expanding with seven new locations in the UAE’s Sharjah Collection, reflecting strong regional tourism prospects.

🏨 21-27 June 2026: Miami hotel ADR surged 51.1% to $267.87 and RevPAR rose 51.6% to $196.87, aided by three World Cup matches. Occupancy slightly increased by 0.3% to 73.5%. San Diego's occupancy jumped 13.1% to 91.9%, driven by the 2026 BIO International Convention. San Francisco, hosting two World Cup matches, saw occupancy rise 10.9% to 82.5% and RevPAR surge 40.7% to $211.19. CoStar’s data includes 94,000 properties and 12 million rooms globally.

🏨 Selected Marriott hotels in London are offering day use rooms, catering to hybrid workers, commuters, and travelers needing a quiet space. This option enhances daytime inventory use, generating additional revenue. Guests access rooms, Wi-Fi, and private bathrooms in central London locations such as County Hall, Kensington, Maida Vale, Marble Arch, and Regent’s Park. Anne Legrand, Area General Manager, highlighted the shift in guest needs for privacy and workspaces over traditional overnight stays.

💸 In Q1 2026, UK hotels saw a 2% increase in TRevPAR, yet payroll costs rose nearly twice as fast, pressuring margins. RevPAR, the prevalent revenue metric, often fails to account for profitability variances, especially in full-service hotels. Profitability depends on labor cost ratios, F&B margins, distribution costs, and other expenses. Revenue benchmarking measures occupancy, ADR, and RevPAR against competitors, while profit benchmarking focuses on profitability, costs, margins, and GOPPAR. RevPAR and GOPPAR serve distinct but crucial roles.

📈 U.S. hotel sector gains momentum with weekly RevPAR growth averaging 4.0% year-to-date through May, exceeding 5.0% recently. National RevPAR increased by 4.9% in the 28-day period ending June 13. A 3.0% RevPAR growth is forecasted for 2026. Travel trends, including more domestic trips due to international conflicts, boost growth. Key factors include favorable convention calendars, demand surge in Minneapolis, and Bay Area's A.I. rebound. Oil prices may ease with Middle East ceasefire talks.

💰 A room sold at $150 through Booking.com nets $120-$127 after a 15-20% commission, compared to $150 from a direct sale. RevPAR doesn’t show the $23-$30 revenue gap. Occupancy-driven growth yields 30% profit flow-through, while rate-driven growth delivers 50-60%. GOP Index benchmarks profitability against competitors. TRevPAR accounts for total revenue, including ancillary services. Benchmarking infrastructure now supports full P&L metrics. Performance engineering focuses on overall hotel profitability, aligning team decisions with profit impact.

💸 Revenue management faces a measurement issue. RevPAR is outdated, as rising booking, labor, and OTA costs cut into profits. Revenue leaders now focus on total revenue and profit per guest, requiring a new commercial team approach. Alise Deeb from Dragonfly Strategists, Marlene Cazares from Duetto, and Mylene Young discussed this in a webinar. Personalization at scale is a goal, with casino operators leading in CRM and loyalty. True individual-level pricing remains aspirational.

📅 U.S. hotels in May 2026 reported a 0.6% rise in occupancy, reaching 65.7%. The average daily rate (ADR) increased by 3.4% to $168.51, and revenue per available room (RevPAR) rose by 4% to $110.76. Philadelphia led with a 4.3% occupancy increase to 74.4%. Las Vegas saw significant gains in ADR (13.5% to $238.40) and RevPAR (17.9% to $188.69) due to a strong event calendar. Overall, 20 of the top 25 markets experienced RevPAR growth.

🏨 Canada, May 2026: Record hotel industry growth with ADR at CAD233.40 (+9.5%) and RevPAR at CAD165.02 (+10.5%). Quebec leads with occupancy at 72.1% (+5.9%), ADR at CAD276.62 (+20.0%), and RevPAR at CAD199.49 (+27.1%). Montreal achieved the highest market gains, influenced by the Canadian Grand Prix. In June, Toronto's ADR increased by 47.6%, while Vancouver's ADR jumped by 54.0%. Vancouver’s booking for June 24 was at 64%, a decrease of 8.6% year-over-year.

📊 July's revenue rose 6% from last year, but be cautious: a higher average daily rate (ADR) might not signify effective pricing, but rather a shift in booking mix. Separating volume, mix, and rate reveals true gains. Misinterpreting mix gains as pricing victories can lead to strategic errors. Use three checks: analyze monthly variance, segment share shifts, and identify lost segments. Proper analysis prevents costly misreads and ensures accurate decision-making for future quarters.