TRENDING
A PANDEMIC
PLUS ?
SURVIVAL MODE HAS IMPROVED COMMUNICATION AND FLEXIBILITY BETWEEN BRANDS AND OWNERS .
Contributed BY MEGAN ROWE
The COVID pandemic ’ s pummeling of hotels has caused pain across the industry . But some would argue it ’ s also strengthened what can often be adversarial relationships .
Exhibit A : The major hotel brands , suffering their own losses , have remained committed to providing cost-saving relief and revenue-generating support to owners . Their efforts have been welcome , but some would like to see more permanent changes to certain business practices .
“ The brands are doing just about everything they can to help , outside of giving us money ,” says Jon Bortz , CEO of Bethesda , Maryland-based Pebblebrook Hotel Trust and current American Hotel & Lodging Association chair . Measures have included reductions in fees , relaxing brand standards and PIP deadlines , allowing FF & E reserves to be used for other purposes , and altering rules for staffing levels and furloughs . Brands have also negotiated reductions or deferrals on key vendor contracts for shuttered hotels .
Foregoing the daily housekeeping standard and allowing the closure of food and beverage outlets — especially in communities with restrictions and capacity limits — have been the among the most welcome concessions .
The crisis also seems to have encouraged a stronger brand-owner dialog . “ Brands have taken a very proactive approach to working with owners and managers , not only keeping them apprised of what they ’ re doing , but also recognizing there are a lot of best practices they can learn by engaging with owners . They ’ re listening differently now than they were previously ,” says Michael Doyle , managing director and executive vice president with CHM Warnick in New York .
DRIVING BUSINESS Brands have also helped drive revenue to hotels by focusing on customer segments likely to still be staying in hotels : leisure guests and beyond .
“ In a collaborative effort with our management teams , many brands are targeting different types of base business that they wouldn ’ t normally go after to generate revenue ,” says Michelle Russo , CEO of Providence , Rhode Island-based HotelAVE . Work from hotel promotions that offer dayuse rooms or incentives for longer stays have been a popular solution , and Bortz says brands helped some Pebblebrook hotels providing housing for college students as a socially distanced alternative to dorms .
Some pricing strategies are seen as a potential boon . “ Brands have embraced dynamic pricing initiatives that will be crucial in returning ADRs to pre-pandemic levels quicker than during the last downturn ,” says Elie Khoury , executive vice president of operations for Aimbridge Hospitality , based in Arlington , Virginia .
Sage Hospitality President and Chief Operating Officer Daniel del Olmo acknowledges the support by brands in targeting leisure travelers and remote working , but says that Denver , Colorado-based Sage decided to piggyback on that with several promotions geared toward leisure travelers and small groups . Bounce-back offers , flash sales , school-cation packages , hybrid meetings , micro wedding packages and other ideas have yielded results .
Whether any of the efforts to keep hotels afloat will solidify into permanent standards is anyone ’ s guess . Some asset managers and owners would like to see shared services shrink , particularly when it comes to functions like sales .
At larger hotels , Doyle says , “ We would like to have people on the property focusing on our property . In the path to recovery , it ’ s better to have people dedicated to your assets .”
Property-level brand staffing standards could stand to be rethought as well , Doyle says . “ We don ’ t want someone who is responsible for rooms and one for food and
WE WOULD LIKE TO SEE OUR BRAND PARTNERS REMAIN FLEXIBLE AS WE NAVIGATE THROUGH THE RECOVERY .
ELIE KHOURY , EVP , AIMBRIDGE HOSPITALITY
8 hotelsmag . com January / February 2021