Why Flow-Through Matters More Than Record Revenue
Record revenue. Higher occupancy. Stronger RevPAR. And a shrinking operating margin. For a hotel celebrating its best sales year, those results seem difficult to reconcile. But a hypothetical scenario shows how easily it can happen. Revenue climbs from $14 million to $15.2 million, an increase of 8.6 percent. Occupancy beats budget, RevPAR outpaces the competitive set, and the restaurant serves more covers than ever. Every department arrives at the year-end review with its indicators in […]
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