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U.S. Hotels Struggle: Rising Costs Threaten Profitability

12/13/2025

25 2 Full Breakdown

Summary

Story summary

A 2025 HotelData.com report shows U.S. hotels face rising costs and declining revenue.
Wages rose up to 5.9% and labor costs per occupied room increased 2% to 11.2%.
To preserve profitability, hotels reduced hours per occupied room by 7% to 15% and improved forecasting and scheduling.
The HotelData.com report notes non-union hotels convert 25% of incremental revenue into profit, while union hotels incur a loss due to higher labor costs.

History

Historical Context

The Taft-Hartley Act of 1947 emerged from rising tensions between labor and business, following the National Labor Relations Act of 1935 and the Little Steel Strike of 1937. It restricted union activities, allowing states to enact right-to-work laws and diminishing union power, which dropped from over 80% victories in elections to around 70% post-enactment. This shift continues to influence labor relations in today's hotel industry.

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Story summary

A 2025 HotelData.com report shows U.S. hotels face rising costs and declining revenue.
Wages rose up to 5.9% and labor costs per occupied room increased 2% to 11.2%.
To preserve profitability, hotels reduced hours per occupied room by 7% to 15% and improved forecasting and scheduling.
The HotelData.com report notes non-union hotels convert 25% of incremental revenue into profit, while union hotels incur a loss due to higher labor costs.

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