Managers Surveyed on Hotel Industry Profitability
The Hospitality Asset Managers Association polled members on revenue trends and ongoing operational cost pressures.
Updated on Oct. 12, 2026 in Hospitality
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In a survey conducted during the fall of 2026, the Hospitality Asset Managers Association found that 57% of members expect to exceed their full-year revenue per available room budget. Meanwhile, 51% of respondents projected they would meet their gross operating profit targets for the year.
Why it matters
Rising labor and insurance expenses continue to compress margins, impacting how much revenue ultimately flows into owner profits. These rising costs are currently at the center of financial strategy for asset managers focused on the bottom line.
A survey of Hospitality Asset Managers Association members shows 44% identify wage growth as a top concern, while 21% cite rising insurance costs. Industry-wide, CoStar projects a 2.1% increase in RevPAR for 2027.
The players
Hospitality Asset Managers Association
This is a professional organization that represents individuals responsible for maximizing the value of hotel properties.
CoStar
This is a commercial real estate information and analytics firm that provides data on property performance.
The details
Hotel brands frequently offer fee reductions to properties that maintain high guest service scores to offset rising operational expenses. Operators are also actively maintaining control over food and beverage costs to preserve profitability.
Timeline
In 2025, 33% of members identified wage growth as a top concern.
During spring 2026, members reported 58% confidence in revenue and 55% in profits.
On October 9, 2026, HAMA board members held a call.
The Hospitality Asset Managers Association conducted its latest survey in fall 2026.
The hotel industry expects RevPAR growth in 2027.
Market Landscape
This data reflects a broader shift where hospitality firms must navigate rising operational overhead to maintain investor returns. The industry is currently moving toward a model where owners prioritize bottom-line profitability while brands focus on fee-based revenue streams.
Travelers may see hotels tightening operational expenses, which can impact the availability of certain guest services or food and beverage options. These cost-saving measures reflect the broader effort by operators to keep rates stable despite rising labor and insurance overhead.
The takeaway
Asset managers are balancing revenue growth with significant pressure from labor and insurance costs. Property owners should focus on maintaining high guest service scores to qualify for fee reductions from major brands.
Further reading
For more on industry performance trends, visit the Hospitality section.
Source note: This article includes information reported by CoStar.
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Do you expect the rising costs of goods and services to continue impacting your household budget?
