PHOENIX — Hoteliers are naturally optimistic people, and often they don't want to admit that the economy or the overall demand environment might be souring on them until they absolutely have to.
And while that happened to a degree earlier during The Lodging Conference, as hoteliers admitted business travel hasn't returned the pace they once hoped for, the whispers grew to a roar on the conference's final day during the Lodging Industry Investment Council meeting.
During that gathering of dozens of high-ranking hotel industry executives, the majority of the group acknowledged the broader economy is now in the midst of a recession. But many are still holding out hope that what is now a technical recession won't grow into the type of deep recession that will keep consumers and corporations from spending on travel.
"Is it a recession? Technically, yes, but I don't think it feels like it to the vast majority of people in the U.S.," said First Hospitality President and CEO David Duncan. "Maybe I've been spending time in different places, but it certainly doesn't feel like it."
Questions remain on just how long hoteliers and travelers will continue to feel good in the midst of recession though, and some felt the Federal Reserve's persistence with driving up interest rates would likely lead to greater economic pain by early 2023.
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“I think we have to start looking at our hotels a bit like alternative accommodations where we can do things like bachelorette parties, bachelor parties, little family reunions. I think there's a lot of things around what we do for a living and what our assets consist of that really allows us to be just as competitive as alternative accommodations.”
—Joseph Berger, president and CEO, BRE Hotels & Resorts
“I think the best technology out there is fake grass. It looks better than real grass. It doesn't take any maintenance whatsoever. It is the future. You know, we've seen the fake wood in the hotel rooms, stuff is amazing, decreases your maintenance costs massively. It's better for the environment. You don't have to water fake grass. It's easy to clean that dog poop off of fake grass. It's just a better product. Everybody likes to talk about the phone and you know with deference to people who like their phone and stuff like that: fake grass, it is the future.”
—Tyler Morse, chairman and CEO of MCR Hotels, talking about what new technology could propel the hotel industry forward.
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When will leisure, corporate and group meeting demand return to pre-pandemic levels? Leaders from Women in Hospitality Leadership Alliance, @JLL, @Island_Hosp, @DavidsonHospGrp & @IHGhotels discussed this & more in a #LodgingConference session today. pic.twitter.com/rlSDnbmFI2
— American Hotel & Lodging Association (@AHLA) September 21, 2022