PHOENIX — As the end of 2024 approaches, hoteliers are turning their eyes to what 2025 will bring.
Many discussions during the second day of the Lodging Conference mentioned getting through the next several months to have better clarity on the new year. This last quarter is the final hump to get over, and everyone’s eager to see what’s on the other side.
It means being beyond the U.S. presidential election. It means knowing how much further the Federal Reserve will cut interest rates. It means more data on the industry’s performance, giving a clearer picture what’s ahead.
Podcast recap of day
Photo of the day
Quotes of the day
“You put all of those things together, and I think it's going to be an incredibly active, maybe I can say explosive time for the industry. So, get your contractors and your project managers lined up now. Buckle up. It's going to be an amazing ride in 2026, 2027, no matter where you sit in this industry.”
—Greg Juceam, president and CEO of Extended Stay America, on the combination of post-election clarity, lowering interest rates, debt maturities and refinancings.
“Some argue that some people are born as leaders. For me, it's not the case. Leadership is learned, cultivated, it's practiced — until it becomes a habit. We’re in the people business. To me, that's the mantra — people. So it's the way we connect with people, listen to them — really actively listening, not just listening — and making sure to create a sense of connection and awareness.”
—Zack Gharib, president of Red Roof, on building leadership skills in the hospitality industry.
Editors' takeaways
I’ve heard a lot of discussions about the Federal Reserve’s September interest rate cut of 50 basis points. It was more than expected, but also maybe not enough and it definitely arrived too late. The cut by itself isn’t going to do anything to spur deals or refinancing yet, but the fact the Fed made the cut has had a psychological effect. It’s a peek at lower costs in the somewhat-near future.
The expectation is another two cuts of 25 basis points by the end of the year, meaning the hotel industry will enter 2025 with the federal funds rate down 100 basis points compared to just months before. People expect another potential 50 basis points down by June or so, so a total of 150 down by the middle of the year. That could be enough to move the needle on refinancing or transactions, especially if this wall of debt maturities actually comes true this time.
It's something we’re going to keep checking in on over the coming months, gauging what owners are doing, whether it’s just information gathering, kicking the tires or getting ready to sign on the dotted line. There are a lot of factors at play, but the overwhelming narrative I’m hearing is that 2025 will be the start to a much more robust deals environment.
—Bryan Wroten, senior reporter
@HNN_Bryan
It was so interesting to hear industry leaders speak candidly about their journeys to their current positions in the “A View from the Top” session. Zack Gharib, president of Red Roof, said he doesn’t necessarily agree with the notion that people are born as leaders. He said leadership is rather learned and cultivated until it becomes a habit (see Quotes of the day above).
Liam Brown, group president of U.S. and Canada at Marriott International, added that leadership and learning is a journey, and it takes someone who believes in you to break through any impostor syndrome.
Everyone has to start somewhere, and there isn’t a singular linear path to success. What makes the hotel industry special is that someone like Gharib, who said he started his hospitality career as a housekeeping manager, can eventually move all the way up the ranks into an executive role. This underscores the need for the leaders of today to pass down their knowledge and inspire the next generation of leaders.
—Trevor Simpson, associate editor