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Group Business Lag, Delta Variant, Labor Issues Complicate Hotel Strategies

Hoteliers Discuss Ways To Attract Talent From Other Industries

G6 Hospitality's Rob Palleschi and AJ Capital Partners' Eric Hassberger speak on the "'Wine' Down With the Bosses" panel at the 2021 Hotel Data Conference in Nashville. (Jason Mallory, Event Coverage Nashville)
G6 Hospitality's Rob Palleschi and AJ Capital Partners' Eric Hassberger speak on the "'Wine' Down With the Bosses" panel at the 2021 Hotel Data Conference in Nashville. (Jason Mallory, Event Coverage Nashville)

NASHVILLE, Tenn. — While the Delta variant presents an obstacle for the hotel industry, hoteliers said there are bigger things to be worried about.

During the "'Wine' Down With the Bosses" panel at the 2021 Hotel Data Conference, Eric Hassberger, president of AJ Capital Partners, said that while it is important to listen and follow health guidelines, people need to not be so fearful.

People who are traveling are making the decision to travel and are willing to abide by policies such as mask-wearing, he said.

He added the Delta variant might delay a return to travel, but it's not stopping it.

When Will Group Business Return?

Rob Palleschi, CEO of G6 Hospitality, which owns the Motel 6 and Studio 6 brands, said while some still think corporate group business could return after Labor Day, he's always been of the mindset that it won't return until 2022.

"I want to see what happens in Vegas in January as the bellwether," he said.

If the industry does see another down period in this pandemic, travel is the first thing companies will cut, he said. That will cause a slowdown in business travel or group deferred to next year, Palleschi added.

The Labor Problem

The biggest issue the industry has to worry about is the labor shortage, Hassberger said. The pandemic has created tension with travelers and anxiety among staff members, and he believes the important thing is to keep them calm and keep them safe.

Patrick Short, president of Peachtree Hospitality Management, said the industry also needs to find ways to attract young people to the industry as they make up a large part of the workforce by encouraging education of the industry and by giving people opportunities to grow.

He added the industry is "approaching the labor shortage poorly."

"We’re literally going after each other. We’re not finding new employees. We’re not bringing people into our industry. We’re just stealing from each other," he said.

Panelists said one way to attract employees from other industries is by showing them that it's a fun business.

Amanda Hite, president of STR, CoStar's hospitality analytics firm, said what she loves about the industry is the relationships built and the care of the people in the industry.

Hite said she didn't come from hospitality but she realized the care and service of the industry once learning it. She added she loves the opportunity to meet people you'll know for 30 years of your career and see their successes.

Palleschi said the hotel industry also needs to be honest about pay to attract more talent. Companies such as McDonald's and Amazon are transparent about their pay, so hotel companies should do the same.

"Let's get the noise out there," he said.