Le Cavalier is a French brasserie in the historic Green Room of the Hotel Du Pont in Wilmington, Del., which PM Hotel Group operates. Photo credit: Jason Varney |
||||||
|
room by 2.3 %, suggesting productivity improvements are helping offset wage pressure.
The expense crunch isn’ t likely to recede any time soon, but the revenue side could see a boost, according to CoStar, which in August made upward adjustments to its 2026 U. S. hotel forecast, which now shows occupancy reaching 63.1 % for the year, up eight percentage
Senna House Hotel Scottsdale, Curio Collection by Hilton is managed by Remington Hospitality.
|
points from 2025; ADR growth of 3.1 % YOY; and RevPAR growth of 4.4 % YOY.
“ The hotel industry sold a record number of room nights in the first half of the year, an increase of 11.4 million compared with 2025, while room revenue climbed by more than $ 5.4 billion,” said Amanda Hite, president of STR.“ The industry outperformed our expectations.” Its P & L forecast, meanwhile, showed an increase of 4 % YOY on GOP after a contraction in 2025.
NEVER A DULL MOMENT This is all to say that things change. And in the current epoch, that’ s almost assured. Still, the hotel management companies HOTELS spoke to struck an optimistic chord, mostly based on their ability to adapt and stay nimble to offset challenge.
Some, like Ben Perelmuter,
|
CEO of Remington Hospitality, are confident that the tables will turn on the revenue versus expense math.“ The biggest opportunity over the next 12 to 24 months is the potential for ADR growth to outpace expense growth again,” he said. One of the benefits of running hotels is selling what amounts to nightly leases, which allows for the recalibration of rates by the day.“ Rate growth has been thin and uneven for the past two years, but the forecasts we’ re watching now show revenue growth outpacing expense growth. That’ s the environment where discipline pays off.” Among management company executives, labor remains the big challenge.“ Labor continues to put the most pressure on the middle of the P & L,” said Peter Karpinski, EVP of operations for Pyramid Global Hospitality’ s Benchmark Resorts & Hotels |
INCREASINGLY, THE INDUSTRY WILL BE LOOKING BEYOND REVENUE PER AVAILABLE ROOM TO MEASURES LIKE EBITDA PER AVAILABLE ROOM
– PAUL SACCO, CHIEF GROWTH
AND DEVELOPMENT OFFICER,
PM HOTEL GROUP
Collection. Pyramid turned to technology to help alleviate some of the strain. It recently built and launched a suite of AI-powered labor intelligence tools to help its teams staff smarter and protect propertylevel profitability.“ We’ re seeing the most measurable impact across housekeeping and F & B,” Karpinski said.
Labor isn’ t the only P & L threat..“ The cumulative impact of insurance, utilities, property taxes, technology, distribution costs and other operating expenses has fundamentally changed the profitability equation,” said Paul Sacco, chief growth and development officer
|
|||
Oct / Nov 2026 hotelsmag. com 9 |