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All Eyes on Operating Costs: Lessons Learned in 2024 and Cost-Control Advice for 2025
Hotel profit margin, which measures profits as a percent of revenue, is considered a good indicator of the efficiency of hotel operations. In 2023 and 2024, hotel profit margins at both the gross operating profit (GOP) and earnings before interest, taxes, depreciation, and amortization (EBITDA) levels have declined, indicating that both operating and ownership expenses have increased at a greater pace than revenues. Based on CBRE’s February 2025 Hotel Horizons Investment Performance forecast, this trend is […] The post All Eyes on Operating Costs: Lessons Learned in 2024 and Cost-Control Advice for 2025 appeared first on LODGING Magazine.
Hotel profit margin, which measures profits as a percent of revenue, is considered a good indicator of the efficiency of hotel operations. In 2023 and 2024, hotel profit margins at both the gross operating profit (GOP) and earnings before interest, taxes, depreciation, and amortization (EBITDA) levels have declined, indicating that both operating and ownership expenses have increased at a greater pace than revenues. Based on CBRE’s February 2025 Hotel Horizons Investment Performance forecast, this trend is […]
The post All Eyes on Operating Costs: Lessons Learned in 2024 and Cost-Control Advice for 2025 appeared first on LODGING Magazine.
