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come to bear , all bets are off the table . Meanwhile , a legacy laggard on embracing new technology , it may be forced to with the day-by-day growth in artificial intelligence .
It ’ s not all bad . It ’ s not all good . Where is it going from here ? HOTELS turned to a cross section of the hospitality industry to garner their take on how things potentially could shake out in 2024 — the good , the bad and maybe even the ugly ( le bon , le mauvais , le laid ).
Jefferson wasn ’ t the only one with the ability to drop a good aphorism . It , too , has been said to celebrate endings , for they precede new beginnings . For the hospitality industry , this couldn ’ t ring truer as it rings in the start to a new year . Here ’ s what they said .
HOTELS : What will people be talking about as we move into 2024 and why ? Ryan Rivett , co-founder and CEO , My Place Hotels : Capital market fluctuations and complexities and the potential implications of AI will likely maintain a significant portion of the stage in 2024 . With pre-pandemic debt maturities looming for every level of capital participant , capital and operating costs continue to also rise . AI will continue to be discussed heavily because we don ’ t really understand the growth and opportunities of it . As a rule , the relationship between hospitality and technology is like the relationship between a good bellman and a large hotel while
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Ryan Rivett
the elevator is broken : he ’ ll get the luggage there eventually , but it ’ s going to take some time . Chris Hemmeter , managing director , Thayer Ventures : The AI story will continue to dominate headlines and water-cooler conversations . Much of the optimism will be focused on cost reduction promises but the narrative will continue to shift toward revenue drivers , including mass personalization and microtargeting . Warren Marr , managing director , hospitality & leisure , PwC : Interest rates continue to be a top-of-mind concern for the industry . Until rates come down in a meaningful way , two things will be difficult to achieve . First , hotel owners with
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Chris Hemmeter |
looming debt maturities will find it difficult to refinance at levels they can cover . Second , buyers will continue to stay on the sidelines until bid / ask spreads narrow . Against this is a lot of uncertainty around the return of the individual business traveler . The question of whether their return will increase is centered around the pace of return to office , which has currently stalled out as employee work and commuting preferences stand firm . Greg Juceam , president and CEO , Extended Stay America : The impact of hotel markets from interest rates will continue to drive headlines and conversations . Higher interest rates restrict deal flow by making acquisition projects harder to pencil . More importantly , they impair cash flow , which is necessary for capital repairs and operational reinvestment into the business . On a brighter note , even as household finances are under duress from recent inflationary headwinds , the hotel industry continues to benefit from consumers ’ desires to travel and meet , the evolution of hybrid work and burgeoning government infrastructure spending . Lindsey Ueberroth , CEO , Preferred Hotels & Resorts : People have moved on from the post-pandemic ‘ revenge travel ’ phase , having made a point of traveling to their favorite places and reconnecting with friends and family , regardless of price or crowds . Travelers are now |
focused on ultra-experiential and adventure travel or ‘ deepimmersion travel .’ They are looking for something beyond the norm and also something off the beaten path in locations that allow them to avoid the crowds and experience a location in a meaningful way — think photography , wellness ( beyond the spa ), philanthropy focused . Imagine far-flung destinations ,
Lindsey Ueberroth
such as Uganda / Rwanda , India , Bhutan , Malaysia , as well as secondary and tertiary markets , such as Puglia and Dolomites in Italy . Eric Danziger , CEO , Resolute Road Hospitality : The continued expansion of new brands , along with the attempted mergers between other large companies . It is very difficult to understand who benefits from the proliferation of so many new brands — the owner is strained with capital investments to keep up and the customer can be confused . The other main topic will be overall consumer health . Will this ‘ soft landing ’ we ’ ve been hearing about for the last year come to fruition or will there be harsher consequences for our industry from the overall
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