The U.S. hotel industry faces mounting financial pressures as operating costs continue to rise faster than revenue growth. According to CBRE(1) and the American Hotel & Lodging Association (AHLA)(2), insurance premiums have surged by over 15%, with economic and midscale properties seeing even sharper increases. Simultaneously, utilities, property maintenance, and labor expenses have escalated, forcing hoteliers to reconsider pricing strategies and implement tighter cost controls to protect margins in a persistently inflationary environment.
These pressures are compounded by ongoing labor shortages and high wage demands, which strain operations across many hotel segments. Reports suggest that while demand fundamentals are stabilizing, particularly in urban markets, the cost side of the equation remains volatile. Due to construction and financing challenges, margin erosion remains a concern, especially for independent operators and distressed assets.
Download the full report for detailed insights on the Travel and Leisure Industry in Ankura's May update:
Sign up to receive all the latest insights from Ankura. Subscribe now
© Copyright 2025. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
