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EOS Hospitality owns and manages the 22-story William Vale hotel in the Williamsburg neighborhood of Brookyln.
at PM Hotel Group.
A shift in operational mentality has become one way PM and its peers are combating expense creep. Management companies in the past leaned heavily on RevPAR: produce high doses of it and everything else takes care of itself. That works fine when revenue consistently outpaces costs.“ Historically, we’ ve focused heavily on RevPAR— and
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appropriately so,” Sacco said.“ However, we need to pay equal attention to the quality of revenue and how much reaches the bottom line.”
In other words, not all revenue is created equal— particularly revenue generated via intermediaries that comes with heavy commission payouts, which is one reason why hoteliers are more inclined to focus on net RevPAR that
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A BETTER EXPERIENCE AND BETTER CAPTURE CAN GO HAND IN HAND
– ERNEST LEE, CHIEF
COMMERCIAL OFFICER, EOS
HOSPITALITY
considers the cost of customer acquisition.“ We prioritize direct-booking channels and profit metrics that maximize bottom-line flow-through,” Remington’ s Perelmuter said. Hoteliers, as Sacco pointed out, that put a premium on channel mix and business mix will have better profit outcomes.“ Increasingly, the industry will be looking beyond revenue per available room to measures like EBITDA per available room,” Sacco said.“ That’ s a much clearer indication of how effectively we’ re converting demand into value for hotel owners.”
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OWNER APPEASEMENT It’ s owners that operators answer to. And since the former are remunerated on the bottom line, profitability is king; RevPAR, it’ s been |
said, doesn’ t pay the rent. It’ s why conversations are frequently geared toward profit optimization rather than revenue management.“ RevPAR and market share matter, but ultimately owners want to know how revenue converts to NOI,” said Ernest Lee, chief commercial officer for EOS Hospitality, which owns and manages a portfolio of mainly independent hotels.“ We train our teams to think like owners and are comfortable with management agreements that reward GOP performance rather than simply gross revenue.”
Focusing attention beyond room sales is one way to grow profitability. EOS puts considerable attention on total revenue spend that encompasses such profit centers as F & B, spa, meetings and events, golf and more.“ We’ re focused on the guest’ s total spend, not just the room rate,” Lee said. He cited everything from F & B packages to programming and activities that give guests more reasons to stay longer and spend more on property.“ A better experience and better capture can go hand in hand,” Lee further said.
At Brittain Resorts & Hotels, another management company that primarily operates independent hotels, a large focus is put on each guest’ s total revenue potential, inclusive of strategic pre-arrival upselling, room and view upgrades, resort amenities and experiences, ancillary fee structures and targeted food-and-beverage offerings. Brittain is also
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10 hotelsmag. com Oct / Nov 2026 |