While brand managers are eager to enhance their brands with all the latest and greatest amenities, owners are reluctant to pay for amenities that don't pay off. Debates often arise between owners who pay for amenities and brand managers who mandate these amenities as brand standards.
New Research, Underscores Economic Benefits of Hotel Industry Across U.S.
The U.S. hotel industry reported performance declines during the week of 5-11 February, according to STR. Occupancy fell 4.4% to 59.6%, ADR decreased 1.6% to $121.43 and RevPAR dropped 5.9% to $72.41.
The offering of complimentary services and amenities by U.S. hotels is on the rise. From 2007 to 2015, hotel expenditures on complimentary food, beverages, in-room media, services, and gifts just within the rooms department increased at a compound annual growth rate (CAGR) of 3.6 percent. For comparison purposes, all hotel operating expenses rose at a 1.1 percent CAGR during the same time period.