The IT spend paradox in hotels: more technology, same overheads.

Across the assets we work with, technology spend has become one of the fastest growing line items in the P&L - PMS upgrades, RMS platforms, CRM and loyalty tools, cybersecurity compliance, channel and distribution tech, cloud hosting fees. Individually, each investment is easy to justify. Collectively, they're reshaping cost structures in ways owners aren't seeing reflected in GOP.

The uncomfortable question asset managers need to keep asking operators, where is the labour efficiency this was supposed to buy us?

A few disciplines we push on behalf of owners:

• Tech stack audits, not tech stack additions. Before approving new spend, map what's already licensed and underused. Most hotels are paying for capability they've never activated.
• ROI thresholds, not "best practice" justifications. Every system should be tied to a measurable outcome, labour hours saved, RevPAR uplift, distribution cost reduction, not a vendor's case study from another market.

KPI-linked vendor agreements. If a platform promises efficiency, build that promise into the contract terms.
Technology should be increasing productivity and reducing cost per key over time. When it isn't, that's an asset management conversation, not an IT conversation.

Curious how other owners and hotel asset managers are approaching this. Are you seeing the same disconnect between IT investment and operational return?