Labor, Inflation Challenged Hotel Operators in 2024, and Some Worry They Will Persist in 2025

Rising costs of goods and wages tightened margins

by Trevor Simpson
CoStar

Hotel management companies overcome different sets of challenges each year, but the main ones from 2024 were a continuation of lingering issues from years past: labor and inflation.

Those two challenges play hand in hand with each other — high inflation leads to higher wages, which has only accentuated existing staffing problems, hoteliers said.

Gregg Forde, president and chief operating officer at West Palm Beach, Florida-based Island Hospitality, said that on a macro level, inflation was the key driver of operational challenges for the hotel industry this year.

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