U.S. Hotel Management Company Compensation Slows in 2023 & By Robert Mandelbaum and Tim Dick

As U.S. lodging industry performance decelerated in 2023, so did the amount of fees paid by owners to their management companies. Preliminary results from CBRE's annual Trends in the Hotel Industry survey find that total hotel revenue growth slowed to 6.9% in 2023, while GOP inched up by 3.5%. As a result, total management fee payments rose by just 1.2% during the year, well below the double and triple&digit growth rates seen in the previous two years.