Hotel Owners who Budget, Why Run a 1 Star Hotel?

Stop Budgeting Per Room: How Cheap Labor Tanks Your Hotel’s Star Rating

Hotel owners who budget by Expense Per Room instead of total operational costs often end up running a 1-star property, even if they dream of 3 stars or higher. This cost-cutting mindset leads to low-quality hires, shoddy maintenance, and unhappy guests—ultimately costing more than it saves.

Focusing solely on the lowest price per room sacrifices quality in critical areas like maintenance and housekeeping. Cheap contractors—charging as little as $11-$15 per room—may seem like a deal, but they deliver poor results that hurt your bottom line. Here’s how they backfire:

1. They Cause Damage: Mishandling equipment, like PTACs, leads to costly repairs.
2. They Take Shortcuts: Quick fixes fail to address root issues, leaving problems unresolved.
3. They Lack Expertise: Unskilled workers can’t troubleshoot issues like leaks or wiring.
4. They Create Messes: Housekeeping spends extra time cleaning up after them.
5. They’re Unreliable: No track record of quality means no accountability.
6. They Can’t Be Referred: Poor work won’t earn recommendations from peers.
7. They Require Oversight: You waste time micromanaging their subpar efforts.
8. They Lower Ratings: Guest complaints on Yelp, TripAdvisor, and Google drag down your star rating.

The result? Broken PTACs, stained carpets, leaking rooms, and a tarnished reputation. Discounts to appease guests and revenue lost from down rooms eat away at profits faster than any “savings” from cheap labor.

A Real-World Example of Cheap Labor Gone Wrong

Imagine hiring “AAA Cheap Labor” to clean PTACs and carpets. Their sweaty crew moves PTACs haphazardly, washes them poorly, and stuffs them back into sleeves. They use low-grade equipment and chemicals on carpets. The outcome:

• 7 PTACs stop working, requiring expensive repairs.
• Carpets smell better but stains remain, disappointing guests.
• 10 rooms leak water, damaging door frames and thresholds.
• The crew vanishes, leaving you unable to demand fixes.

You paid $2,200 for the job, but repairs cost $5,000, and 10 down rooms lose $5,500 in revenue. Total cost: $12,700—plus a hit to your star rating. The next year, you try hiring a full-time employee for $30,000, but they can’t keep up, and unforeseen expenses pile up. Your ratings continue to slide.

The Better Choice: Invest in Quality

Instead of chasing the lowest price, adopt a total cost-of-business approach. Hire a professional company that prioritizes quality and accountability. Yes, they may charge three times as much as “AAA Cheap Labor,” but their trained technicians:

• Fix problems proactively, addressing issues like sleeve repairs, wiring, or leaks.
• Use proper equipment and techniques, ensuring PTACs work and carpets look pristine.
• Deliver lasting results, reducing maintenance costs and downtime.

The payoff? Happier guests, higher star ratings, and a stronger brand reputation. Quality work boosts revenue by attracting repeat customers and glowing reviews. Plus, the savings from fewer repairs and complaints let you invest in maintenance more often, creating a virtuous cycle.

Hospitality Thrives on Quality, Not Cheapness

Budgeting per room may feel frugal, but it’s a trap that leads to 1-star outcomes. Switch to a holistic approach that values quality over cost-cutting. Your guests, your ratings, and your profits will thank you.

What’s your experience with budgeting for hotel maintenance? Share your tips or challenges below, and let’s discuss how to elevate your hotel’s star rating!

Now is a good time to change your deep cleaning to quarterly instead of annually, or just when you want to sell a building.

Cheap hotels seem to be on the way out, especially with the new expectations of cleanliness. Choose Quality.