Abstract
Hotel ‘Other Revenue’ category is often overlooked as a means to improve NOI through heightened profit margin contribution. This study investigated the impact of ‘Other Revenue’ on NOI profit margin in 3,271 full and limited service U.S. hotels. A decision tree analysis was conducted to gain insight of various departmental expense ratios (independent variables) to NOI (dependent variable). Results indicated room and undistributed expense ratios had a greater impact on NOI than ‘Other Revenue’ in limited-service hotels, while food and beverage, undistributed, and room expense ratios had a greater impact on NOI profit margin than ‘Other Revenue’ in full-service hotels.
Recommended Citation
Maier, Thomas A. and Roberts, Chris Ph.D.
(2018)
"Exploratory Analysis of ‘Other Revenue’ Impact on Full and Limited Service Hotel NOI,"
Perspectives in Asian Leisure and Tourism: Vol. 3, Article 4.
DOI: https://doi.org/10.7275/9ady-qj51
Available at:
https://scholarworks.umass.edu/palat/vol3/iss1/4
Doi
https://doi.org/10.7275/9ady-qj51