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.
Maier, Thomas A. and Roberts, Chris Ph.D.
"Exploratory Analysis of ‘Other Revenue’ Impact on Full and Limited Service Hotel NOI,"
Perspectives in Asian Leisure and Tourism: Vol. 3, Article 4.
Available at: https://scholarworks.umass.edu/palat/vol3/iss1/4