HP Patel is the incoming chair of AAHOA and president and CEO of Capital City Hospitality Group. As a hotel owner and industry leader, Patel shares his thoughts on how hoteliers can position themselves for a possible economic downturn.
Be ready and cash heavy.
“I expect that in the next few years, there will be a dip in our economy as far as the hotel industry is concerned. What’s critical here is that hoteliers prepare and be ready for the downturn. We’re making sure we’re cash heavy, not just asset heavy.”
“Thankfully, the tax reform that just passed will help a lot of hoteliers through the slump, especially if they use the returns wisely. We’re planning to reinvest in our existing hotels, hire more people, and make sure that we have a solid capital fund so that we can sustain a downturn even with low occupancy.”
Seize opportunities for growth.
“Even with the possibility of a downturn, the economy is looking up. I am especially looking forward to opening and acquiring more hotels this year, and hiring more employees.”