ATLANTA — Strong industry fundamentals, such as high average daily rates, are keeping some hoteliers carefully upbeat, and others are taking that optimism up a notch.
During the "A View From the Top" panel on the second day of the Hunter Hotel Investment Conference, BWH Hotel Group President and CEO Larry Cuculic said his outlook on the industry is "cautiously bullish."
However, there are five things to watch closely, he said, including inflation, interest rates, banking instability, geopolitical actions and unemployment.
Speakers on stage also shared how they define leading with purpose and what future generations can strive for.
Julie Arrowsmith, president and interim CEO of G6 Hospitality, said equity in travel is critical and there's a place for all.
"Our mission is to leave the light on for everyone who wants to travel and I can't think of anything more important than being able to live out a value that's critical to me. I would hope that as students are looking at their next steps, that they find companies that match with their values, have missions that are good for our communities."
Photo of the Day
Data Point of the Day
Vail Ross, STR’s senior vice president of sales and marketing, said hotel average daily rate and revenue per available room have exceeded 2019 levels nominally, but ADR is about 1% off 2019 levels and revenue per available room is about 6% off 2019 levels when adjusted for inflation. STR and Tourism Economics forecast a mild recession in the second half of 2023, noting how a one-point drop in GDP typically corresponds to a four-point drop in hotel demand.
Quotes of the Day
"Conferences like this that put Castell on the beginning of the agenda ... and then [AHLA's] ForWard, including it in the agenda and promoting it throughout the industry for months in advance, is something that this industry could do a whole lot more of to raise that awareness. Everyone here in the room, making those contributions to these foundations that are putting bright, young people [in the spotlight]; we need more Fred Cerrones in this industry coming in and have been here for 40 years, of all genders and races that really care about this industry."
— Wyndham Hotels & Resorts President and CEO Geoff Ballotti during the "A View From the Top" panel on what the industry could do to enhance diversity.
"New term: cautiously bullish. Everybody usually says cautiously optimistic, I'm going cautiously bullish," BWH Hotel Group President and CEO Larry Cuculic during the "A View From the Top" panel on how he's feeling about the hotel industry right now.
Editors' Takeaways
Though this is an investment conference, I do still want to highlight some chatter around revenue strategy, because at the end of the day, if there isn't a strategy, then why invest your time and capital into something? What I've heard on the second day of the Hunter Hotel Investment Conference in terms of the challenges that face commercial teams — which includes sales and marketing and revenue management — is that they're often inundated with data and reports or their teams aren't aligned on shared goals. Instead, they can fall into a trap of yelling into a void of what their team feels is the right option.
To cut through that noise, experts on a panel titled "Revenue Strategy" suggest first and foremost to refocus the conversation on the customer and their experience if it's veering too much toward the product being sold. To accomplish that, Sarah Williams, chief revenue officer at InterMountain Management, said it's crucial everyone from the commercial team is participating in frequent calls together and each walk away with actionable steps to create value for the customer.
Turning to unit growth, Best Western Hotels & Resorts President and CEO Larry Cuculic said what it takes to get a franchise deal done today is having developers who are well-capitalized in today's environment, have solid relationships with banks and who can afford a property-improvement plan as they reposition a hotel or are putting a shovel in the ground.
— Dana Miller, senior reporter
@HNN_Dana
On Wednesday, Hotel Equities founder and chairman Fred Cerrone received the Hunter Conference Award for Excellence and Inspiration, and in his remarks he spoke about how he leads with purpose. Cerrone is hugely admired in the hotel industry for his leadership, coaching and mentoring in addition to his business acumen, and I’ve always enjoyed hearing his perspective. I challenged the hotel brand CEOs on the “View From the Top” panel that I moderated later Wednesday morning to share how they too lead with purpose. It was inspiring to hear the men and women at the top of some of the world’s largest brands talk about how they define purpose as creating opportunities for people in their companies, for franchisees to build wealth that helps their families and communities, and how a passion for what hospitality is all about drives them.
— Stephanie Ricca, editorial director
@HNN_Steph
It’s often said, for obvious reasons, that the hospitality industry is built on its service for others. There was a cool moment at the “Brand Development” panel where the panelists were asked about the competitive nature of development in the industry.
Among the panelists, Chip Ohlsson, executive vice president and chief development officer at Wyndham Hotels & Resorts, and Brian Quinn, chief development officer at Sonesta Hotels, spoke about how development leaders actually communicate with each other and help each other out, putting the strength of the industry over any brand rivalries.
Hearing the leaders of some major brands discussing how they root for each other was humanizing and a reminder of what the hospitality industry is all about: helping others and providing service, even behind closed doors.
— Trevor Simpson, associate editor
@HNN_Trevor