While the industry actually saw decreases in the cost of Insurance during the last several years of the 1990�s, HOST data shows a less dramatic increase the previous year.  Between 2000 and 2001 insurance cost rose 14 percent. Now, for the first time, STR offers a five-year HOST Summary which demonstrates the trends in both departmental revenues as well as swings in departmental and fixed expenses. While the 2003 Study indicates that the real dollar value of Insurance costs for Limited Service hotels is less than its Full Service counterparts, Limited Service hotels experienced the same trend in price increases over the past year, and throughout the Five-Year Summary.

Mark Lomanno, President of STR, commented: �Insurance costs are more difficult to manage as the changes to this expense are not always immediately reflected in the bottom line.  So, even though most operators were diligent in cutting expenses, by analyzing these expense trends, hoteliers can plan for the long term changes they may wish to implement to sustain improved financial performance.� 

The HOST Study is a publication of Smith Travel Research (STR), and is based on data assembled and compiled solely by STR.