Top 5 Labor & Cost Statistics Every Hotel Operator Needs to Know (And What to Do About Them)
Top 5 Labor & Cost Statistics Every Hotel Operator Needs to Know
(And What to Do About Them)
The hospitality industry is in a defining moment.
Labor shortages, rising wages, and operational complexity are pushing hotel operators to rethink how they manage their frontline teams. According to the latest CBRE Trends® in the Hotel Industry report (March 2024), based on data from 2,456 U.S. hotels, labor continues to be both the biggest cost driver and the greatest operational challenge.
Here are the top 5 statistics, and what they mean for your hotel’s success in 2025 and beyond.
1. Labor now represents 51.7% of all operating expenses
In 2023, labor as a percent of revenue rose from 31.4% to 32.4%, while as a percent of total expenses, it jumped from 50.9% to 51.7%.
Why it matters: Labor is now the single largest line item in your operating budget. With margins tightening, managing labor efficiently isn't optional, it's survival.
How Command Center helps:
Digitally transform your standard operating procedures (SOPs) with real-time, audit-proof data. Gain visibility across departments and use execution data to build accurate budgets and optimize staffing.
2. Average hourly compensation grew by 29.4%
Over the last few years, hospitality staff have seen significant wage increases. And that trend isn’t slowing down.
Why it matters: You're paying more per employee but are you getting more in return?
How Command Center helps:
Ensure frontline teams consistently follow best practices. Optimize resource use with digital SOPs and data-driven workflows to do more with less, without compromising service quality.
3. Hotels are running with 5.9% fewer employees than in 2019
Despite increased demand, hotels still haven’t returned to pre-pandemic staffing levels.
Why it matters: With leaner teams and more guest expectations, service quality can suffer and that impacts loyalty, reviews, and revenue.
How Command Center helps:
Monitor real-time execution of tasks, spot issues before they escalate, and automate follow-up actions. Command Center gives managers the situational awareness to keep operations running smoothly even with fewer hands.
4. Manager salaries increased 15.6%, outpacing frontline wage growth
From 2022 to 2023, management salaries jumped faster than non-management pay, at 15.6% vs. 12.6%.
Why it matters: Leadership is more expensive than ever. You can’t afford to have them buried in administrative tasks.
How Command Center helps:
Free your managers from the burden of chasing paper checklists and manually verifying compliance. With real-time dashboards and alerts, they can focus on leading, not logging.
5. Group and F&B demand pushed labor costs up by 13–14.5%
Labor costs rose sharply in departments most affected by group bookings and food service:
13.6% in convention operations
13.7% in full-service properties
14.5% in Food & Beverage departments
Why it matters: The demand is back, but the labor gap remains, and any execution failure can be costly.
How Command Center helps:
Train new staff faster. Standardize service delivery. Automate follow-ups. Whether it’s banquet prep, guest room readiness, or clean-up, Command Center ensures every task is tracked, completed, and visible.
Final Thoughts: Rethinking Hotel Operations from the Frontline Out
With more than half of your operating budget going to labor, your team is not just a cost; it’s your most valuable asset. But only if they’re equipped to deliver.
Command Center is the tool that helps your frontline deliver the service that drives your bottom line.
📱 Mobile-first
📍 Location-aware with smart NFC tags
📊 Real-time dashboards & audit proof data
🔔 Instant alerts via app, email, SMS, voice
🔁 Cross-department visibility
Ready to modernize your frontline operations?
