NASHVILLE, Tennessee — An impending wave of maturing debt in the hotel industry is not only likely to open the floodgates on hotel transactions, it will have hoteliers scrambling for tech solutions to cost pressures, according to Kurien Jacob, managing director and partner at Highgate Tech Ventures.
Many hotel owners have been able to maintain profitability despite rising inflation and costs, but loan payments coming due could change that equation. To avoid defaulting on loans, cost savings through operational efficiencies will be even more important — and that's where tech will play a large role, Jacob said.
Technology will have an increased presence in operations and strategy, and ultimately secure better guest experiences, he said.
At Highgate Tech Ventures, a venture capital investment firm of Highgate Hotels headquartered in New York City, Jacob's primary responsibility has been to identify early the technology that can drive savings across Highgate's hotel portfolio.
“Technology is the No. 1 focus for any hotel company today. It is what is going to drive the future and differentiate [hotels], as well as ... drive revenue-maximizing cost efficiencies, productivity and all that. It is in the forefront,” he said.
Jacob said one company he has invested in installs smoke sensors in guest rooms.
“It automatically detects [smoke] using [artificial intelligence] … and sends that to the dashboard so the guest is automatically charged. … It does away with the old technology where people would have to go and investigate.
“This alone can add four to 10 points of [earnings before interest, taxes, depreciation and amortization] and huge revenues for hotels, all while not adding any cost,” he said.
For more of Jacob’s comments, watch the video at the top of this article.