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Hotel Owners Face 2027 Profit Squeeze as Cost Growth Outpaces RevPAR
Featuredfinanceasianhospitality.com··1 min·For: Owner, Investor, GM, Revenue

Hotel Owners Face 2027 Profit Squeeze as Cost Growth Outpaces RevPAR

A HAMA survey reveals that while 97 percent of asset managers anticipate 2027 RevPAR gains, rising labor and insurance costs will limit GOPPAR growth to just 1 percent. In response, over half of respondents are actively considering brand or management changes to protect operating margins.

Key Takeaways

  1. 161% of asset managers project modest 2027 RevPAR growth of 1% to 3%, while GOPPAR is forecast to rise only 1%.
  2. 2Top operational concerns include wage increases (44%), labor shortages (39%), and escalating insurance costs.
  3. 351% of surveyed owners are considering or executing brand or management changes to control fees and margins.

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Source: asianhospitality.com

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