Ancillary Revenue In 2020: Resorts Benefit the Most

by Robert Mandelbaum | Oct 13, 2020

Last month CBRE Hotels Research analyzed the cost control measures U.S. hotel operators have implemented to mitigate the impact of the severe declines in revenue inflicting the lodging industry in 2020.  In short, the mostly controllable expenses within the operated departments were cut by 26.8 percent on a per-occupied-room (POR) basis in July 2020 compared to July 2019.  This trend continued into August 2020 when we observed operated department expenses decline by 30.6 percent compared to the same month of the prior year at the 1,800 properties in CBRE’s sample.