While hotel revenues may be on the rise, actual profits are under serious pressure. Behind the scenes, inflation is silently eating away at margins, forcing operations teams to make difficult decisions. And nowhere is that pressure more visible than in the hotel laundry room.
The rising cost of labor, linen replacement, energy, and operational supplies means housekeeping teams are being asked to do more with less. In this article, we break down what inflation means for hotel profit margins and how you, as a housekeeping or procurement lead, can adapt to protect your operations.
1. Inflation Is Squeezing Hotel Profit Margins
According to STR and CoStar, U.S. hotels saw an increase in GOPPAR (gross operating profit per available room) of 3.2% in 2024. However, labor costs rose by 11.2% in the same period. That means the increase in hotel revenue is being outpaced by rising operational expenses.
CBRE reports that 2025 will continue this trend. Despite strong occupancy and rising ADR (average daily rate), inflation and increasing costs in utilities, amenities, and services are compressing hotel profit margins.
2. Why Hotel Housekeeping Is on the Frontline of Inflation
- Higher linen turnover due to low-quality products leads to more frequent replacements.
- Increased laundering cost per item due to rising energy and water prices.
- Guest expectations remain high — poor towel or bedding quality can result in negative reviews.
- Inflation in shipping, fabric, and raw materials is driving up supplier prices.
As a result, hotel housekeeping departments are being forced to stretch already tight budgets while maintaining high hospitality standards.
3. The Hidden Cost of Replacing Poor-Quality Hotel Linen
Trying to reduce costs by purchasing low-spec towels or bedsheets often leads to premature damage:
- Low GSM towels fray after just a few washes.
- Weak stitching causes seam failures.
- Inexpensive blends trap odors and discolor quickly.
Ultimately, hotels end up replacing linen more often, spending more, and damaging the guest experience. It’s a lose-lose situation.
4. How Smart Hotels Are Protecting Their Profitability
Leading hotels are responding to inflation pressures with smarter procurement strategies:
- Selecting linen based on hotel category, guest volume, and laundry cycle frequency.
- Requesting verified specs and wash test samples before confirming bulk linen orders.
- Partnering with hospitality-specialized suppliers that offer consistent quality.
- Investing in high-durability hotel linen collections that extend product lifespan.
Conclusion: Fight Inflation with Smarter Hotel Linen Procurement
Inflation is impacting hotels globally, but poor procurement decisions don’t have to follow. Housekeeping managers and procurement leaders can protect both the guest experience and their profit margins by making more informed linen sourcing choices.
At Cleamond Blue, we help hotels in over 20 countries source durable, high-performance hotel linen built to last — not just look good on paper.
Follow Cleamond Blue for hotel-grade linen sourcing tips and hospitality supply strategies.