hotel operating costs
What Hoteliers Need to Know About Rising Insurance Costs: Leave No Stone Unturned
Terri Stanganelli | September 12, 2023
By Terri Stanganelli Hotel operators can combat rising rates with audits, accountability, and awareness of post-pandemic challenges Just as ensuring hotel safety requires leaving no asset or process unexamined, the quest for affordable property coverage requires casting a wide net. Property insurance is probably the biggest insurance-related concern for all hotel operators this year. It is a very difficult market. Brokers tell us they have not seen a property market like this in 30 years. Thanks largely to an active 2022 hurricane season, reinsurance rates for 2023 have risen 25% to 30%. Carriers are passing on those increases, in th...
Hotel Insurance – A Largely Uncontrollable Cost
Robert Mandelbaum | April 19, 2022
To analyze recent changes in hotel insurance costs, and the factors that influence those changes, we examined the operating statements of 3,156 U.S. hotels that reported insurance expenses for the Trends® survey each year from 2015 through 2021 (estimated). By Robert Mandelbaum & Tom Cleary In 2020 and 2021, U.S. hotel operators did a praiseworthy job controlling expenses to offset the significant declines in revenue. Based on data from CBRE’s Trends® in the Hotel Industry survey of annual operating statements from thousands of properties across the U.S., not only have we seen a reduction in the variable expenses associated wi...
