LOS ANGELES — The sense of hopefulness that the hotel industry and society at large are at the tail end of the COVID-19 pandemic was evident during the first day of the Americas Lodging Investment Summit. But those hopes were undercut somewhat by the constant visual reminder of attendees wearing masks as Los Angeles County recently reinstated its mask mandate amid rising cases.

Hoteliers at the conference said they believe the industry's recovery will continue unabated, but the biggest hurdle still facing the industry is a shortage of labor as hotel demand rebounds.

“Our industry's future, our ability to deliver for our customers, will in large part rely on our ability to attract and retain workers from Gen Z. This youngest generation has a tremendous appetite for activism, and we have to show them how impactful a career in hospitality can be.”
— Chris Nassetta, president and CEO, Hilton

92% of consumers are more likely to trust "environmentally and socially conscious" brands, according to Hilton's Nassetta. 88% are more loyal to companies that "support social or environmental issues."

It's important for hoteliers to admit the labor issues facing the industry aren't short term by any stretch of the imagination. Labor pressures existed prior to the pandemic and will continue well after the end of the pandemic.

Over the course of the first day of ALIS, multiple hotel leaders noted the industry needs to do a better job recruiting more diverse workforces and leaders to improve their companies' standing in the industry and lift the industry as a whole.

Kathleen Taylor, chairwoman of the board for Royal Bank of Canada and former chief executive at Four Seasons who received the ALIS Lifetime Achievement Award, noted she achieved many "firsts" for women in her career that should have been achieved already. She was the first woman to lead RBC's board and the first woman on Four Seasons' executive committee.

"But women still have a lot of firsts in their lives, as do people from visible minority backgrounds," she said. "So figuring out how to create more equal access to opportunity is something that we're getting much better at in the hospitality industry, but there's still a long way to go."
— Sean McCracken, news editor
@HNN_Sean

The labor shortage for the U.S. hotel industry was front and center during the first day of ALIS. Hotel employers across the country continue to struggle to hire and retain enough employees to meet this summer’s leisure demand and the anticipated return of business travel later this year.

During the day’s opening sessions, industry executives all had something to say about the labor issue. Hoteliers talked about staffing models for hotels with occupancy around 10% to 15% during the week but 90% over the weekend. Others said they’re having difficulty attracting new employees even when offering higher wages.

During one of the general sessions, American Hotel & Lodging Association President and CEO Chip Rogers shared that one in five hotel jobs are not expected to be filled by the end of the year, equating to 500,000 jobs. To provide some guidance, Rogers also shared the results of a survey AHLA on what would get people interested in working for the hotel industry. The top three responses were wages, benefits and flexibility. Those might be a tough pill to swallow for some, but if that’s what’s holding back people from joining the hotel industry, hoteliers will have to play ball.
— Bryan Wroten, senior reporter
@HNN_Bryan

Editor’s note: Chris Nassetta serves on CoStar Group’s board of directors.