PERSPECTIVE
Into the Shift
THE IMPLICATIONS OF A SEA CHANGE IN HOSPITALITY .
Contributed by MICHAEL P . HUNTER , INTEGRA REALTY RESOURCES
The hospitality sector , much like the broader global economy , continues to experience significant fluctuations . Such fluidity makes it crucial to stay informed about the evolving trends and key factors shaping the industry ’ s economic landscape .
TOP-LINE GOOD , BOTTOM-LINE BAD One of the central themes is the ongoing struggle between revenue growth and rising expenses . Though inflation is something that can be managed in an industry that adjusts rates daily , it ’ s clear that present growth in room revenue is being driven primarily by increases in average daily rate ( ADR ) as occupancy remains below pre-pandemic levels . Unfortunately , this limited revenue growth is compounded by rising costs of insurance , taxes and other operational expenses , which continue to erode profitability .
Many operators find it increasingly difficult to maintain margins with wage growth
22 hotelsmag . com Mar / Apr 2025