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As demand returns, costs complicate bottom line

The hotel industry is rebounding, but expense creep, especially labor-related costs, and still trailing business travel, are having a bigger impact on bottom line results, according to an analysis of May global data from HotStats. In the U.S., RevPAR in May was up 539% versus the previous year but still 51% lower than May 2019. Total revenue in May 2021 increased to US$127 per available room, a 541% increase over last year. However, labor costs are up nearly US$20 per available room since last May, a cost that is unlikely to subside considering the tight labor market in the U.S.…
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