HOTEL ® CASE STUDY Visit www.hoteleffectiveness.com for more on labor management. CHALLENGE One of Hotel Effectiveness ®’ clients—a 120-room select service hotel with strong RevPAR—was having issues with its gross operating profit (GOP) margins including overtime, labor costs and distribution expenses. Two years ago, the hotel began experiencing a steady uptick in overtime hours due to increases in occupancy combined with a tight labor market. Creating more of a challenge was the significant increase in hourly wages—some roles were up by 25%+. And, distribution costs have been on the rise. All these cost increases posed a problem for the hotel’s management company: How can it hit its targets to earn the incentive fees built into its contract while reducing costs? The staff is made up

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