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2022 Americas Lodging Investment Summit

Hotel Executives, Lenders Anticipate Recovery Happening Sooner Than Expected

Yotel's Hubert Viriot (right) speaks about the guest experience during a panel on brand differentiation at the Americas Lodging Investment Summit that also included Peter Strebel, of Omni Hotels & Resorts. (Bryan Wroten)
Yotel's Hubert Viriot (right) speaks about the guest experience during a panel on brand differentiation at the Americas Lodging Investment Summit that also included Peter Strebel, of Omni Hotels & Resorts. (Bryan Wroten)

Read all of the highlights from the 2022 Americas Lodging Investment Summit, held Jan. 24-26 in Los Angeles.

Click on each headline below to read more.

Marriott International's Stephanie Linnartz, right, and Mike Deitemeyer of Aimbridge Hospitality speak at the Americas Lodging Investment Summit in Los Angeles. (Bryan Wroten)

The ongoing recovery of hotel performance in the U.S. has given industry leaders a renewed sense of optimism for future growth.

During the “Boardroom Outlook: Assets — Positioning for Growth” session of the Americas Lodging Investment Summit, hotel executives spoke about plans to expand their companies and the factors driving that growth.

Leisure travel is what will fuel Wyndham Hotels & Resorts’ growth, President and CEO Geoff Ballotti said, noting the company recorded the highest average daily rates ever for the last two weeks of December.

“For our segments, the economy drive-to and midscale drive-to markets, that growth has not slowed down,” he said.

Industry forecasters see potential for a strong recovery in the U.S. hotel industry this year, but major metro markets that rely on group and international travel will continue to struggle until those demand segments return to prior levels.

Gilda Perez-Alvarado, global CEO for JLL Hotels & Hospitality, says hotel transactions are picking up around the world, as groups including institutional investors, real estate investment trusts and family offices renew their interest in the sector.

Carlos Flores (left), of Sonesta International, and Tony Sherman, of Terrapin Hospitality, speak at the 2022 Americas Lodging Investment Summit. (Bryan Wroten)

Every hotel company is having a hard time recruiting new employees, which executives said puts a spotlight on the importance of retaining existing employees in a period of historic turnover.

Speaking during the "Boardroom Outlook: People — Reworking the Work Equation" panel at the 2022 Americas Lodging Investment Summit, Crestline Hotels & Resorts President and CEO James Carroll said hotel operators such as his company are forced to prioritize company culture in a way that makes employees want to stick around.

"Most people want to do something that they feel good about and be in an environment that they feel good about," he said. "Culture absolutely matters. How you recognize people in the workplace, the kind of praise that you give to them, the feedback they get, whether they work in a environment where there's more teamwork is fostered and people are helping each other."

The strong recovery of the U.S. hotel industry is keeping the attention of investors, and those interested in buying hotels have started looking at troubled markets for deals and opportunities to convert to other real estate classes.

Benchmark Pyramid's Warren Fields and former Best Western President David Kong identified hotel operator mergers and the need for greater diversity in leadership as top issues for the hotel industry.

Leaders of hotel brands say the value proposition and promise of consistency to guests keep brands relevant in the industry.

A panel of hotel industry experts believe this year could be a busier transaction year than in 2021, driven in part by owners wanting to take advantage of all the competition for deals driving up prices.

Hotel executives said the pandemic was a good opportunity to reset the hotel operating model and to cut back on unwanted or overly expensive offerings such as executive lounges.

Well-funded competition for hotel deals and other factors have affected hotel valuations, according to a panel of owners and advisers at the Americas Lodging Investment Summit.

Recaps

Hoteliers attending the first day of the Americas Lodging Investment Summit said they are ready for the industry to move on to the next stages of the recovery.

While many issues remain as the hotel industry recovers from a demand crisis, at the top of the agenda for most hoteliers is a persistent shortage of workers.

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