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Author

Robert Mandelbaum

Director of Research Information Services at CBRE Hotels

Robert MandelbaumRobert Mandelbaum is the Director of Research Information Services for CBRE Hotels Americas Research. He is based in the firm’s Atlanta office, where he is in charge of Research Information Services. Research Information Services produces the annual Trends® in the Hotel Industry statistical report, along with customized financial and operational analyses for client projects. On a quarterly basis, CBRE Hotels produces five-year forecasts of performance for six national chain-scales, six national location categories, and 55 major U.S cities using its proprietary Hotel Horizons® econometric forecasting model. Mr. Mandelbaum began his hospitality industry career with Holiday Inns, Inc. in Memphis, Tennessee. He started his career with the firm in 1983 in the Memphis office of Pannell Kerr Forster, where he conducted market and financial feasibility studies and operational analyses for hotel, restaurant, club, and conference center clients. Prior to moving to Atlanta in November 1997, he also worked in PKF’s San Francisco office. Mr. Mandelbaum holds a Bachelor of Science degree from Cornell University. He serves on the American Hotel and Lodging Association’s (AH&LA) Financial Management Committee that is responsible for preparing the Uniform System of Accounts for the Lodging Industry (USALI). In addition, he is a member of the Hospitality Financial and Technology Professionals (HFTP) association. He is on the executive board of the Cornell Hotel Society, the author of articles for industry trade publications, a guest lecturer at college and university hotel school programs, and a speaker at industry forums.

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Insights by Robert Mandelbaum (146)

Labor Cost Trends in 2020

Based on CBRE’s survey of monthly operating performance, U.S. hotels experienced a 58 percent decline in total hotel revenues from 2019 to 2020. This resulted in a decrease of 78 percent in profits at the Gross Operating Profit (GOP) level, along with a 107 percent fall off in Earnings Before Interest, Taxes, Depreciation, and Amortization.

Controlling Telecommunication Costs

Although telecommunications costs account for a small percentage of expenses, data during 2015 through 2019 revealed a significant upward trend in telecom related expenditures. To achieve more efficient hotel operations and survive the changing landscape, hotel owners and operators are finding new ways to control telecommunications expenses.

The Growth In Management Fee Expense

In 2019, 86% of the hotels that participated in CBRE Hotels Research's annual Trends® in the Hotel Industry survey of property-level operating statements reported the payment of a management fee. On average, these hotels paid management fees equal to 3.

Operating Observations From 2020

In 2020, U.S. hotels suffered the worst year of operating performance since CBRE began tracking profitability in 1938. During the year, the average hotel in CBRE's monthly survey of U.S. operating performance experienced a 78 percent decline in Gross Operating Profits (GOP) and achieve the lowest GOP margin (19.

How can hotel companies curb losses after the toughest year 2020?

2020 has been possibly the worst year of operating performance in the last five decades. A year-over-year GOP decline of over 70%, placed the GOP margin at the lowest levels in recent history. All hotel companies put forth initiatives to curb the losses.
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