Regardless of whether the hotel industry has reached the peak of the cycle, fundamentals remain healthy. Here’s what owners should prepare for as they look ahead to the next 12 months, according to five CEOs who spoke at the Hunter Hotel Conference last week in Atlanta.
“As owners, we’re focused on operating our hotels. We’re saying let’s get back to basics and worry about the top-line, hiring good employees, and taking care of the guests. New supply is increasing, but the fundamentals for ’16 and ’17 still look very healthy.” —Dave Johnson, President and CEO, Aimbridge Hospitality
“After four or five years of rapid growth and expansion, it’s a good time to focus on your properties and key strategic investments you can make in technology, the guest experience, and renovation to put yourself in a strong position for when things might slow down a bit.” —Elie Maalouf, CEO, the Americas, InterContinental Hotels Group
“We see very steady growth through 2018. This is a great time to get your projects done and open or to make investments in your existing hotels. If you look at the fundamentals—GDP, employment, supply and demand, consumer confidence, housing—all of those metrics are green lights.” —Steve Joyce, President and CEO, Choice Hotels International
“It’s choppy out there. It’s harder to underwrite a deal when construction costs are going wild in some markets. We must be more cautious just because the math points in that direction. When construction is inflating in some markets by over a percent per month against a market that might be giving us RevPAR at 6 or 7 percent, we’re going backward in terms of that real return on our new investment.” —Mark Laport, Cofounder, President and CEO, Concord Hospitality Enterprises
“We’re still in the upcycle, so I would suggest owners consider upping their investment in sales and marketing, and take as much market share as we can. And also invest in the product and service experience so we can build guest loyalty. When the downturn comes, you want a much broader customer base and also more loyal customers.” —David Kong, President and CEO, Best Western Hotels & Resorts
