Finance, Op Planning & Forecasting

Prior research conducted by CBRE Hotels Research revealed that hotel management companies were rewarded handsomely as the U.S. lodging industry recovered from the COVID-19 pandemic. An analysis performed by CBRE in April 2023 found that total hotel revenue increased by 153% from 2020 to 2022, while Gross Operating Profits (GOP) grew by 437%. This resulted in a 68% increase in the fees paid to management companies and brought management fees back to pre-pandemic levels. The increases in fees were largely due to the improved performance of U.S. lodging properties, which in turn triggered the payment of incentive management fees.

With nearly 20 years in hospitality sales, I’ve had the pleasure of working alongside many talented leaders, teams, and clients. If there’s one lesson I’ve learned along the way, it’s this: creating an environment where employees can thrive is paramount to having happy clients.

As the hospitality industry undergoes a significant period of transformation, we’re thrilled to announce that we’ve raised an additional $110m of funding, led by existing investor Kinnevik, alongside Revaia, Goldman Sachs Asset Management, Notion Capital, and new investor LGVP.

Effective financial management is paramount for the success of a hotel business. One of the critical aspects of financial management is budgeting, a process that traditionally involves significant time, effort, and coordination among various departments within a hotel organization. However, with the advent and adoption of modern budgeting technology, hoteliers can streamline their annual financial budgeting processes and dedicate fewer resources toward building an accurate budget.

As renowned author Maya Angelou once said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” This sentiment is at the core of what most hoteliers strive to achieve for guests during their stays, with a keen focus on guest satisfaction remaining an essential element of any successful property’s operations. However, with technology’s growing role in hospitality optimization, the companies providing systems and solutions to hotel organizations may not always share the same mindset. Although artificial intelligence (AI) and automation are continuing to enhance the speed and efficiency of many hotel processes, customer service has often suffered, and personal interactions are increasingly hard to come by. Especially in an industry grounded in hospitality and personalization, this approach seems counterintuitive.

More consumers are prioritising social values, the environment, and health and wellness in their purchasing decisions than ever before—and travellers are no exception. To stay competitive, hotels not only need to make these values a priority but also ensure that their claims can be substantiated by real actions and evidence.

In the ever-evolving hospitality industry, the question of how to effectively compensate hotel operators remains crucial. While the basic premise of paying managers for their management skills holds true, the prevalent incentive fee structures may no longer adequately align with market realities, particularly for owners.

On May 18, Otelier is once again asking hotel leaders to come together to shine a spotlight on the dedicated overnight crews that keep our establishments running seamlessly through the night. We have several ways you can recognize their hard work this year, including nominating exceptional team members for 2024 Night Auditor of the Year.

Mews Unfold 2024 takes place on 29th May at Amsterdam’s stunning Muziekgebouw. It’s a day of hospitality innovation, designed to inspire hoteliers in the pursuit of remarkable hospitality.

In a recent conversation I had with an asset manager who was underwriting a hotel in the metro Atlanta area, it was determined that for each incremental 50k of profit achieved, the hotel asset value went up approximately 600k. Imagine if your revenue team fully understood this.