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HOW HOTELS CAN MONETIZE NON-ROOM SPACES.
Contributed by JAY BURNETT, CIO, GF HOTELS
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Pre-COVID vs. post- COVID continues to be a key industry comparison. While a prior generation focused on the impact of 9 / 11, another industry black swan event imprinted on our industry’ s psyche, today’ s operators measure results against 2019, the pre-COVID high-water mark. The good news is that 23 of the top 25 U. S. markets have surpassed their 2019 RevPAR, according to CoStar, but simply relying |
on room revenue being back on track isn’ t enough.
Though revenue has recovered, costs have risen sharply, including salaries and wages, construction and repair costs, real estate taxes and insurance premiums. One thing is certain: The post-COVID revenue peaks enjoyed at many hotels have been offset by costs increasing faster, wiping out potential income gains.
The challenge is clear, but what should be done when
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increasing expenses make it difficult to drive income despite strong revenue trends? One answer: Go beyond the rooms department and explore hidden or non-traditional sources of revenue that can help improve the bottom line.
THE USUAL SUSPECTS Some ancillary revenue sources are common in certain hotels. For example, guests expect to pay for parking at city hotels with shared garages or
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40 hotelsmag. com Sept / Oct 2025 |