information and telecommunications
Assessing the Digital Infrastructure of Your Hotels
CBRE Hotels | July 3, 2024
By Robert Mandelbaum, John Pomposello, and Adam Barry In 2023, U.S. hotels faced rising operating expenses outpacing revenue growth, resulting in declining profit margins. To combat this, hotels are leveraging technology to enhance efficiency and guest satisfaction. Key areas of technological investment include employee productivity tools, automated guest services, and improved cybersecurity. Analyzing IT expenditures from 4,121 properties, CBRE found that IT costs represented a relatively controlled 1.4% of total operating revenue, despite a 7.4% increase in 2023. Higher IT spending was noted in Resort and Convention hotels due to their e...
Information and Telecommunications Costs
Robert Mandelbaum | June 27, 2022
By Robert Mandelbaum and Adam Barry Just as technology has become more ubiquitous throughout our lives, it is now impacting guest service and hotel operations throughout all departments in a hotel. To provide more exposure to the growing costs associated with hotel information and technology systems, the 11th edition of the Uniform System of Account for the Lodging Industry added a discrete undistributed department to capture these expenses. Prior to the 11th edition the costs for phone and internet service, payroll for telephone operators and computer technicians, and charges related to information systems were allocated to multiple depar...
