Research Article

Exploratory Analysis of "Other Revenue" Impact on Full and Limited Service Hotel NOI

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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.

How to Cite:

Maier, T. A. & Roberts, C., (2018) “Exploratory Analysis of "Other Revenue" Impact on Full and Limited Service Hotel NOI”, Perspectives in Asian Leisure and Tourism 3(1). doi: https://doi.org/10.7275/9ady-qj51