Channel cost assumptions. The net rate and channel mix simulators use City Shift Finance illustrative cost ranges: Direct 4–8% of rooms revenue; OTA 15–25%; GDS 18–22%; Voice 8–14%. These represent the combined effect of commissions, transaction fees, loyalty charges, and direct-booking incentives. Actual costs vary by property, contract terms, chain scale, and negotiated rates.
Blended cost calculation. Blended cost rate equals the sum of each channel's share multiplied by its midpoint cost rate. Net revenue per available room equals ADR multiplied by one minus the blended cost rate, at 68% illustrative occupancy.
ADR and cost growth data. CBRE Hotels Research, Trends in the Hotel Industry, preliminary sample of 2,600 U.S. hotels. Rooms Department revenue increased 2.2% from 2023 to 2024. Agency commissions increased 6.0% in 2024. Complimentary food and beverage increased 3.9% in 2024. The 2019 to 2024 comparison uses the same-store sample of 1,343 U.S. full-service hotels reporting in both years.
Net contribution context. Net room contribution equals rooms department revenue less all direct rooms costs including acquisition, labor, guest service, and fixed rooms expense. This Readout isolates the acquisition cost component. The Hotel Rooms Revenue and Department Profit Readout covers the full cost structure.
Reporting standard. The Uniform System of Accounts for the Lodging Industry, 12th Revised Edition, adopted January 1, 2026, is the lodging industry reporting standard. Actual property results depend on market, chain scale, service level, union status, channel mix, loyalty economics, and cost allocation.
