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Owner pay and margins

Hotel profit margin: GOP and EBITDA margins for US hotels

Average hotel profit margin: about 35% to 38% gross operating profit and 23% EBITDA in 2025. Why labor decides it, and what housekeeping costs.

GOP margin
34.8% to 38.3%CBRE; HotelData.com, 2025
EBITDA margin
22.8%CBRE, 2025
Labor share
Over 50%Of operated department expenses, CBRE
Housekeeper median
$35,510BLS 2025, via O*NET
Hands folding white sheets on a hotel bed
Short answer

US hotels kept about 35% to 38% of revenue as gross operating profit in 2025 and about 23% as EBITDA. CBRE's sample reported a 34.8% GOP margin and 22.8% EBITDA margin, both slightly down from 2024, while HotelData.com reported GOP rising to 38.3%. Labor is the largest cost, at over half of operated department expenses.

  • CBRE 2025: GOP margin 34.8% and EBITDA margin 22.8%, both down slightly from 2024.
  • HotelData.com 2025: GOP margin 38.3%, up from 37.2%.
  • Labor is over half of operated department expenses; housekeepers earned a 2025 median of $35,510 (BLS).

What is the average hotel profit margin?

Hotels report margins at two levels. Gross operating profit (GOP) is what is left after running the rooms, restaurants and overhead; EBITDA also subtracts management fees, property taxes and insurance. In CBRE's 2025 sample, GOP margins fell from 35.1% in 2024 to 34.8% in 2025 and EBITDA margins from 23.3% to 22.8%. HotelData.com, via Actabl, reported GOP margin rising from 37.2% to 38.3% in 2025.

Neither figure is the owner's profit. Mortgage interest, depreciation and capital spending come out of EBITDA, so an owner with a large loan keeps much less.

Hotel margins by measure

The table sets the two 2025 samples side by side:

Measure20242025Source
GOP margin35.1%34.8%CBRE
EBITDA margin23.3%22.8%CBRE
GOP margin37.2%38.3%HotelData.com via Actabl

Source: LODGING magazine: CBRE on 2025 U.S. hotel profitability (May 2026)

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Illustrative, at about $10 per approved hour. Typical pay is $500 to $2,000 a month per recording employee; earnings vary and your agreement decides actual pay.

Why labor decides hotel margins

CBRE says labor represents over 50% of operated department expenses, and hotel labor costs per occupied room rose 2.9% in 2025. Housekeeping and maintenance are the biggest crews: the Bureau of Labor Statistics reports a 2025 median of $35,510 for maids and housekeeping cleaners and $49,590 for general maintenance workers. Lodging managers earn a median of $69,250.

What owners take home after debt is covered in hotel owner salary.

How can a hotel improve its margin?

Most levers sit in the rooms department:

  • Track rooms cleaned per housekeeping hour and schedule to forecast occupancy.
  • Review in-house versus outsourced laundry costs per occupied room.
  • Use preventive maintenance to avoid out-of-order rooms.
  • Push direct bookings to cut commission costs.
  • Add revenue that does not need more occupied rooms (below).

A new revenue line that uses work your crew already does

Amelia Robotics lists hotels among its priorities and pays businesses for approved first-person recordings of routine work, such as making beds, cleaning bathrooms, laundry and maintenance, used to train AI and robots. Amelia's typical pay is $500 to $2,000 a month per recording employee, assuming 12.5 to 50 approved hours a week; earnings vary, and your agreement and the approved recordings decide what is actually paid.

Illustrative example for six housekeepers recording part of their shifts: 6 housekeepers x 12.5 approved hours a week x 4 weeks x $10 = $3,000 a month, or $36,000 a year, at the typical rate. Amelia pays the business once a month with a statement, and you decide how much to share with the people who record.

Guests and guest belongings stay out of frame by agreement, for example by recording in vacant rooms and back-of-house areas. Results vary and depend on approval. See how this works for hotel housekeeping and maintenance.

Next step

Estimate your hotel's figure on the Physical AI hub.

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Common questions

What is the average profit margin for a hotel?

About 35% to 38% gross operating profit and about 23% EBITDA in 2025. CBRE reported 34.8% GOP and 22.8% EBITDA; HotelData.com reported 38.3% GOP.

What is a good GOP margin for a hotel?

Matching or beating the 2025 samples, roughly 35% to 38%, is solid. Compare against hotels of the same type, since full-service hotels carry more labor-intensive departments.

Why are hotel margins falling?

Mostly labor. CBRE reported hotel labor costs per occupied room up 2.9% in 2025, with labor over half of operated department expenses.

Is EBITDA the same as hotel owner profit?

No. Interest, depreciation and capital spending still come out of EBITDA, so an owner with a large loan keeps much less.

How much do hotel housekeepers make?

BLS reports a 2025 median of $35,510 for maids and housekeeping cleaners and $49,590 for general maintenance workers.

Sources and further reading

Origin Data Partners is independent. We may be paid by our partner when a business we introduce is paid; it never comes out of your earnings. How Origin is paid.

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