In Revenue Management, we often focus on rates, segments, and distribution. But one of the biggest untapped revenue sources in many hotels is not found in the PMS or channel manager; it is right there, in plain sight: unused or underutilised square meters. Every piece of space within your property: from the lobby corner to the rooftop, the parking lot to the breakfast room after 10 AM holds potential to generate revenue or elevate guest experience. The smartest hotels are no longer thinking in terms of rooms only, but in terms of space optimisation.
The question every General Manager and Revenue Manager should ask today is simple: “Are we making the most out of every square meter of our property?”
Because when margins tighten, demand fluctuates, and costs increase, efficiency and creativity become your most profitable allies. Optimising your M² is not just an operational or design issue, it is a Revenue Management strategy.
Traditional Revenue Management has long focused on room revenue; optimising rates, forecasting demand, and maximising occupancy. But as guest expectations evolve and space becomes premium, the most forward-thinking hotels are redefining what “inventory” means. It’s no longer just rooms and suites; it’s everything within the property’s walls.
Consider this: your meeting room might only be used three hours a day, your terrace sits empty half the year, and your lobby becomes a quiet waiting area after check-out time. Each of these spaces could be turned into revenue-generating assets, with the right creativity and commercial mindset.
Think pop-up dining, yoga mornings, local art exhibitions, or coworking memberships. Even parking areas can host events or weekend markets in urban destinations.
By shifting perspective from rooms sold to space utilised, hotels unlock a new dimension of profitability.
The first step is understanding utilisation rates. How often are meeting rooms booked? What are the occupancy patterns of public spaces throughout the day? Pairing this operational insight with financial data allows hoteliers to calculate the true value of each area.
For example, converting a low-performing lounge into a rentable event venue might increase revenue while maintaining guest satisfaction, or even boosting it.
This is where Revenue Management steps in. The discipline’s analytical approach; demand forecasting, pricing elasticity, and segmentation, applies perfectly to space management. Each space can be treated like a micro-inventory with its own demand curve.
Optimising your property’s M² is not a one-person project. The Revenue Manager might identify the potential, but operations, marketing, and sales must execute it. The F&B manager can help design experiences that use existing areas creatively; marketing ensures visibility; and the GM supports the shift from static to dynamic space planning.
Hotels that succeed here often adopt a Total Revenue Management mindset, measuring not just room revenue but total income across outlets and spaces.
Repurposing space should not come at the cost of comfort. The goal is to enhance the guest journey. A business traveler might appreciate a quiet corner with power sockets and coffee service, while leisure guests love surprise weekend pop-ups or evening aperitivos in the lobby. When executed well, space utilisation enhances brand perception and guest loyalty, making it a win-win.
As hybrid work, localism, and experience-based travel continue to grow, flexible design and adaptive revenue models will dominate. Hotels that see their property as a platform rather than a building will have a competitive edge. Tomorrow’s most profitable properties will measure success not only in RevPAR but in Total Revenue per Available Square Meter, a metric that reflects true commercial creativity.
Maximising your hotel’s space is not about filling every corner with furniture or commercial activity. It is about understanding value, both financial and experiential. Revenue Management offers the tools to measure and price that value, while collaboration ensures it is delivered consistently. The more strategically you manage your square meters, the more resilient your business becomes.
At Taktikon, we help hotels unlock their full revenue potential, not just from rooms, but from every square meter of their property.
👉 Ready to discover your hidden M² opportunities? Let’s talk about how Revenue Management can turn space into profit!
