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.
The Hospitality Newsletter
· TopicRevenue management news for hotels covering RevPAR and ADR performance, dynamic pricing, demand forecasting and market segmentation.
Hotel revenue managers must prioritize profit optimization over pure top-line gains as rising overhead erodes RevPAR growth globally.
Profit Squeeze ·97 percent of HAMA members expect 2027 RevPAR growth, but rising labor and insurance costs will restrict GOPPAR to 1 percent.
↓Luxury Pricing ·The Leela lifted RevPAR to $181.58 after a 30 percent ADR surge pushed room rates to $264.
↑Automated Pricing ·Hotel Des Arts Saigon boosted RevPAR 21.6 percent and RGI 13.5 percent after deploying the automated IDeaS G3 RMS.
↑Corporate Retrenchment ·Amex GBT forecasts sub-3 percent U.S. rate growth for 2027 as corporate travel programs trim hotel rosters.
◉Outlook
2027 corporate contract negotiations will test hoteliers' pricing power as managed travel programs aggressively consolidate preferred supplier rosters.
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.
Despite expected RevPAR gains of up to 3 percent in 2027, rising labor and insurance costs will limit GOPPAR growth to just 1 percent.
U.S. hotel performance continued its positive year-over-year momentum through early October, driven by strong group events and conventions.
Airbnb's rollout of dynamic pricing tools hints at a broader strategy to offer hotel-like franchise services to property hosts, according to Bernstein analysts.
HAMA's Fall 2026 survey reveals strong hotel optimism with 97% of asset managers expecting RevPAR growth into 2027, despite persistent margin pressures from labor and rising insurance costs.
Radisson Hotel Group plans to double its footprint in India to 500 properties by 2030 by forming strategic alliances with domestic operators rather than pursuing costly acquisitions.
U.S. hotel performance dropped week over week but showed strong annual gains for the week ending Oct. 3, buoyed by the Yom Kippur calendar shift.
Despite higher occupancy and room rates driven by major summer concerts, UK hotel profit margins declined due to escalating operating costs and energy pressures.
U.S. hotel performance surged for the week ending Sept. 19, driven by major market events that pushed national ADR to a record weekly high of $179.30.
U.S. hotels maintained positive year-over-year gains in August 2026, though growth slowed compared to July. Performance varied widely by market, led by strong gains in San Francisco and…
Newport Hospitality Group is partnering with Virginia Tech to offer hands-on, multi-departmental internships that convert students into full-time industry leaders.
Amex GBT forecasts modest U.S. hotel rate increases below 3% across most major markets in 2027, with San Francisco leading growth due to constrained supply.
Landingplace Hotels has launched the Borderless Hotel Alliance, signing Virginia Beach's 102-room Ambassadors Inn & Suites as its debut member.
U.S. hotel performance surged for the week ending September 19, driven by record-breaking national ADR and double-digit RevPAR growth.
Amex GBT projects global hotel rate increases in 2027 driven by inflation and resilient corporate travel demand, though growth rates will vary significantly by region.
U.S. hotel operating performance is setting records independent of Federal Reserve rate cuts, driven by resilient demand and tight supply.
European hotels in major markets like London and Paris are seeing revenue gains eroded by fast-rising operating costs, such as credit card fees and loyalty programs.
Modern hotel revenue strategy requires balancing occupancy with ADR, segment mix, and shrinking booking windows rather than just filling rooms.
A new Colliers report reveals a K-shaped recovery in H1 2026, where luxury and upper-upscale segments saw double-digit RevPAR growth while economy hotels struggled. Overall U.S.
A holiday calendar shift broke a 21-week growth streak for U.S. hotels, with nationwide RevPAR dropping 6.2% despite strong gains in New York City.
U.S. luxury and upper-upscale hotel brands drove overall market recovery in the first half of 2026, while economy properties faced drops in occupancy and rate.
A Labor Day calendar shift snapped a 21-week growth streak for U.S. hotels, driving weekly RevPAR down 6.2% despite strong gains in New York City.
Cloudbeds has unveiled Cloudbeds RMS, a built-in revenue management system that integrates property performance and market data for automated rate optimization.
Cloudbeds has rolled out Cloudbeds RMS, an integrated revenue management system that pairs real-time property data and market intelligence with automated pricing execution.
Hotel owners risk severe NOI erosion by choosing brands based on logos rather than underwriting complete operating systems, hidden labor mandates, and full fee stacks.
U.S. hotel performance saw mixed week-over-week results but experienced strong year-over-year growth, driven partly by the Labor Day calendar shift.
The U.S. hotel industry marked its 21st consecutive week of year-over-year gains, driven by a 16.1% RevPAR increase aided by the Labor Day calendar shift.
Expedia Group's Vrbo has launched its largest-ever product expansion, introducing 12 new tools spanning sponsored advertising, dynamic pricing, and property management integrations.
The U.S. hotel industry recorded its 20th consecutive week of year-over-year growth, driven by a 1.7% rise in RevPAR despite a calendar-shift slowdown.
The U.S. hotel industry recorded its 20th straight week of year-over-year growth through late August, with RevPAR up 1.7% to $100.69 despite a holiday-related slowdown.
Hotel asset managers anticipate RevPAR gains of up to 3 percent in 2027, according to HAMA's Fall 2026 survey. However, rising labor and insurance costs will limit GOPPAR growth to 1 percent. In response, over half of surveyed asset managers are actively considering brand or management changes to protect their operating margins.
Hotel Des Arts Saigon increased RevPAR by 21.6 percent and improved its Revenue Generation Index (RGI) by 13.5 percent after deploying the IDeaS G3 Revenue Management System. The luxury Ho Chi Minh City property used the automated software to replace manual legacy processes and optimize dynamic pricing alongside overbooking controls.
Amex GBT forecasts modest U.S. hotel rate increases below 3 percent across most major markets in 2027. San Francisco will lead rate growth due to constrained supply. Hoteliers are securing leverage in corporate rate negotiations by using AI-driven dynamic pricing tools and capitalizing on tighter development pipelines.
Lenders are scrutinizing net operating income and labor productivity because U.S. hotel owners face an $18.7 billion CMBS debt maturity wall in 2026 alongside projected industry labor expenses of $131 billion. Rising operating expenses reduce debt service capacity, making topline RevPAR an insufficient measure of refinancing viability.
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