After years of walking hotel floors and sitting with owners over their numbers across Kenya and East Africa, the same three leaks show up again and again — even in properties that look busy and “successful” on paper.
1. Occupancy is high. Profit isn’t.
A hotel can be running 70%+ occupancy and still be quietly losing money — because nobody’s asked what segment is filling those rooms. Volume from low-yield OTA channels or discounted corporate blocks can crowd out the guests who’d actually pay full rate. Full rooms ≠ full margin.
2. Procurement is where the money quietly disappears.
Portion control, supplier terms, forex exposure on imported F&B and amenities, informal buying habits — this is rarely one big theft, it’s a hundred small leaks. Most owners have never actually benchmarked their cost-per-cover or cost-per-occupied-room against what’s realistic for their category.
3. Payroll cost is treated as fixed. It isn’t.
Staffing levels often reflect history, not current demand. Add high turnover cost (recruitment, training, service dips during onboarding) and payroll becomes one of the biggest, least-examined line items on the P&L.