Hotels tracked in the Hospitality Sector Index took in 15.16% less revenue in August 2026 than in July[1]. Labor hours at the same hotels went down by just 3.05% over that month, so revenue per labor hour fell 12.49%[2]. The index is published by the accounting firm Moore Kingston Smith[2].
Why hours lagged behind revenue
The index explains the gap with staffing that stays fairly fixed in housekeeping, reception, food and beverage, and maintenance[2]. Because of that base, hotels cannot trim labor costs as quickly as occupancy moves[2].
The year-over-year view is calmer. August 2026 revenue was 0.83% below August 2025, while labor hours were 3.44% lower[2]. That left revenue per labor hour 2.71% higher than a year earlier[2]. In other words, the sharp monthly drop reflects the end of the summer peak, not a weaker year overall.
How the index is built
The index compares revenue and hours worked with both the previous month and the same month a year before[1]. Moore Kingston Smith's own unit, WMT Troncmaster Services Limited, collects the data[1], and the data set draws on the UK Employment (Allocation of Tips) Act, in force since 1 October 2024[1].
Hotel figures run one month behind the restaurant figures because of a reporting lag in the industry[2]. Hotels often pay these distributions to staff in arrears[1]. That is why the September update carries hotel data for August.
Keep in mind that the hours cover hotel staff across departments, not housekeeping alone. The index does not show how much of the fixed base sits in housekeeping.
What it means on the housekeeping floor
Housekeeping is the department most directly tied to room counts. When stays drop after the summer, the work of cleaning occupied and checkout rooms drops with them. If rosters stay at peak levels, cost per cleaned room goes up even though nobody is working harder.
For cleaning contractors the gap depends on the contract. Where a contractor bills per room but pays staff per hour, hours that do not follow room counts cut into margin. Where the hotel pays for hours, the cost lands on the hotel. Check your contract terms and, where needed, talk to your advisor before changing rates or rosters.
ARPCLEAN take
What does this mean for housekeeping?
For cleaning contractors
- Hours versus rooms: Put August paid hours next to the rooms you cleaned and billed, week by week, to see where hours stayed flat.
- Fall rosters: Plan October and November shifts from forecast occupied and checkout rooms, not from summer staffing.
For hotels
- Department check: Compare housekeeping hours with occupied and checkout rooms for July and August to see whether the department flexed.
- Contract review: Check whether your housekeeping contract pays per room or per hour, and who carries the cost when demand falls.
Staff, minutes per room and cost per room in one calculation.
Calculate cost per room →Sources
- 1Hospitality Sector Index: September hospitality updateMoore Kingston Smith ·
- 2Trading slows after summer, but productivity remains resilientHOSPA ·
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About this story
ARPCLEAN Editorial
Archie Grey is the pen name of the ARPCLEAN editorial team for English-language news. This story was prepared with AI assistance, checked against the linked sources and approved by our editors before publication. Spotted a mistake? Write to [email protected].
No corrections since publication.
