Skip to content

Search

Latest Stories

Blog: Focus on assets and labor during recovery

Labor costs alone were up 68.1 percent in April, data gathering firm HotStats said

Blog: Focus on assets and labor during recovery

AS OCCUPANCY AND costs are gradually increasing for hotels, they should focus now on asset navigation and labor models, according to HotStats.

During the pandemic, asset managers had asked service providers to renegotiate contracts, and advise others to do the same, according to a HotStats blog post.


“If you never ask, you never know. Clients aren’t afraid to ask for lower rates or better services, so put yourself in their position, and if the answer is no, you’re where you were when you started,” the blog quoted Michael Doyle, managing director and executive vice president for hotel asset management company CHMWarnick. “Look at your contract terms with third-party providers, like cleaning services, and see where you can negotiate while taking a fair approach. We still have fairly suppressed demand so if you expect your property’s rebound to come in 2023, try backloading the agreement. Dangling contract extensions gets [suppliers] to open their eyes. That’s been very effective for us.”

In the U.S., labor costs per available room in April were $41.76, up 68.1 percent over the same time a year ago, when COVID-19 dug in. The blog quoted Michelle Russo, CEO and founder of asset manager and advisory firm hotelAVE, saying that properties should reconsider and make changes to the labor model.

“Our operational efficiency division built a dynamic staffing model, where occupancy defines staffing,” she said. “At every five-point increment [in occupancy], we review levels.”

According to Russo, costs can be easily cut in F&B staffing using technology.

“You can have guests order and pay with QR codes and other touchless tools, and then use runners, instead of servers, who take orders, bring food or even drop requested items, like ketchup,” she said. “Closer examination of labor forces hotels to consider whether they really need full-time managers in an area, such as a small restaurant for 20-30 guests, or if someone else on staff oversee it. I would rather be way more conservative about how I’m reintroducing cost, versus overdoing it.”

Doyle also suggests part-time labor.

“Part-timers can be more loyal and more qualified because you can run into teachers or other professionals looking for more working hours. It’s an important strategy long-term, given the cost of benefits,” he said.

Providing internships is another cost-saving device, and can be a source for future employees, if proper training is provided, he added.

In another recent report, HotStats said that profits for U.S. hotels continued to see some small improvements in March, one year after the beginning of the pandemic.

More for you

Extended Stay America survey 2025

Study: Extended-stay hotels feel more like home

What makes extended-stay hotels better than vacation rentals?

EXTENDED-STAY HOTELS OUTPERFORM vacation rentals and apartments in comfort, value and sense of home, according to a survey by Extended Stay America. About 79 percent of respondents said extended-stay hotels are like a home away from home, while 82 percent said they offer a stronger sense of home than vacation rentals or apartments.

In the national survey by ESA and Wakefield Research, respondents preferred extended-stay hotels over other options, citing amenities at 34 percent, comfort and familiarity at 33 percent and personalization at 30 percent.

Keep ReadingShow less
Analyze competitive set data to boost revenue in the USA hospitality market

HotStats: Updated comp sets boost revenue

Why U.S. Hotels Must Regularly Update Their Competitive Sets

HOTELS SHOULD USE an updated competitive set to maximize revenue, control costs and maintain market position, according to HotStats. Those that fine-tune their comp sets consistently outperform others by using real-time insights to guide pricing, labor and revenue strategies.

The comp set should be reviewed at least once a year, HotStats wrote in a recent blog post.

Keep ReadingShow less
Two best friends reunite on a Days Inn trip for social media ambassador campaign

Days Inn launches $10K bestie contest

How Can You Win $10K with Days Inn’s Best Friends Contest?

WYNDHAM HOTELS & RESORTS’ Days Inn brand is launching a nationwide search to reunite five pairs of long-distance friends as brand ambassadors. The pairs, named “Days Inn-siders,” will spend a weekend highlighting a destination on the brand’s social media and receive $10,000, accommodations, flights and a daily stipend.

The initiative aligns with National Best Friends Day on June 8, and applications are open online through July 1, Wyndham said in a statement.

Keep ReadingShow less
Ameyalli Park City by Appellation resort

Appellation, Chopra launch Utah retreat

Introducing Ameyalli Park City by Appellation

APPELLATION HOTEL BRAND co-founders Charlie Palmer and Christopher Hunsberger are working with wellness expert Deepak Chopra to launch a new branded hospitality concept, “Ameyalli Park City by Appellation”, near Park City, Utah. The 78-acre retreat, set to open in 2026 in Midway, will include an 80-key hotel, a wellbeing center and multiple dining venues.

The resort will feature the Ameyalli Center of Excellence, offering health and longevity programming based on Chopra’s seven pillars of wellbeing: emotional regulation, sleep, mindfulness, movement, relationships, nutrition and laughter. Appellation will operate the property.

Keep ReadingShow less
Hyatt CEO Mark Hoplamazian receives Cornell Icon Award and renews RiseHY youth hiring initiative in the hospitality sector

Hyatt’s Hoplamazian is Cornell Hospitality Icon

Who is the CEO of Hyatt and why was he honored?

Mark Hoplamazian, president and CEO of Hyatt Hotels Corp., received the Cornell Hospitality Icon of the Industry Award on June 3 in New York, recognizing his 18 years of leadership. The company also renewed its RiseHY commitment to hire 5,000 additional opportunity youth across the company and its hotels by the end of 2028.

The program provides employment access for individuals disconnected from the economy and supports their workforce participation through ongoing investment, Hyatt said in a statement.

Keep ReadingShow less