HVS published its annual recap of The Lodging Conference on Hospitality Net under the headline "Beyond Revenue Growth," redirecting operator attention from top-line metrics to expense control, net operating income and the operating fundamentals that drive hotel asset values.

The recap distills the conversations that hotel owners, brand executives, management companies and capital sources held at the multi-day industry event in Scottsdale, Arizona.

Why "Beyond Revenue Growth" now

The U.S. hotel industry's public conversation through 2023 and 2024 centered on RevPAR recovery. Operators credited demand strength and limited new supply for occupancy and average daily rate gains. The HVS editorial framing pushes owners to ask a harder question: did the revenue actually drop to the bottom line?

That question matters because cost structures have reset since 2019. Wages, property insurance, real estate taxes, brand programs, technology and food-and-beverage operations all carry higher unit costs than they did pre-pandemic. A property can post a record ADR and still run a tighter operating margin than it did five years ago.

What HVS's framing signals to owners

HVS, a hotel valuation and consulting firm, releases a written recap of The Lodging Conference each year for owners and investors. The recaps typically translate on-stage conversations into operator-level guidance on transactions, debt markets, brand economics and the operating fundamentals that move asset values.

This year's title choice is the editorial thesis. HVS analysts are saying that lenders, buyers and brand partners are starting to underwrite hotels on GOP margin, NOI per available room and expense ratios, not on RevPAR growth alone.

What it means for transactions in 2025 and 2026

For sellers working through 2025 and 2026 dispositions, the framing is a warning that buyers will price assets on NOI durability, not on post-pandemic revenue bounce. Properties that show labor productivity, energy management, food-and-beverage cost-of-goods discipline and consistent GOP margin should trade at tighter cap rates than those depending on rate growth to carry the deal.

For operators, the takeaway is sharper. Revenue management systems and brand standards optimize for top-line share. Asset returns are decided on the bottom line. HVS's message is that operators and owners need to be aligned on which number actually drives the business.

Food and beverage is part of the math

Hotel F&B has taken a particular hit. Banquet, minibar and restaurant margins compressed under labor and input cost inflation even as cover counts recovered. Owners that re-engineered menus, renegotiated supplier contracts and tightened labor scheduling are now posting the GOP margin recovery that the HVS recap implicitly rewards.

The bigger read

The Lodging Conference draws a buyer-heavy crowd each fall. Recaps that emphasize operating fundamentals rather than market euphoria tend to track with where capital is moving. HVS's choice to frame the takeaways around "Beyond Revenue Growth" suggests the firm's analysts see the next 18 months as a period when cost control and underwriting discipline, not demand, will determine which hotels trade and at what multiple.