Hotel Profit Margins Hover Close To 2019 Peaks
Salary and Payroll Increased During Pandemic Despite Lower Staff Numbers
Over the last couple of years, hotel profit-and-loss accounts have undergone quite a change in how they are analyzed.
NASHVILLE, Tennessee - Over the last couple of years, hotel profit-and-loss accounts have undergone quite a change in how they are analyzed.
During a session at the Hotel Data Conference titled “Parsing the P&L: Analyzing Changes in Profit and Loss,” Audrey Kallman, operations analyst at STR, said revenues, costs and expenses have changed in order of importance across the pandemic months. STR is CoStar Group's hospitality analytics firm.
Kallman added they will continue to change as hoteliers head into budget season.
There's also a need to understand what profitability meant in the years before and during the pandemic, which will inform how to better measure profitability in the future, she said.
“Profitability peaked in 2019, but in that year all segments saw very limited [total revenue per available room],” Kallman said. “Over the past four years, labor costs have outpaced revenue growth, and as occupancy increases, you will see an additional rise in labor costs."