Editor ’ s diary
Passion for HosPitality
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 E-mail : jweinstein @ hotelsmag . com Barbara Bohn , Managing Editor 1.312.274.2209 E-mail : bbohn @ hotelsmag . com Brittany Farb , Associate Editor 1.312.274.2229 E-mail : bfarb @ hotelsmag . com Dani Friedland , Managing Editor , New Media 1.312.274.2223 E-mail : dfriedland @ mtgmediagroup . com Bert Ganzon , Senior Art Director 1.312.274.2227 E-mail : bganzon @ mtgmediagroup . com Steve Vanden Heuvel , Senior Art Director 1.312.274.2218 E-mail : svandenheuvel @ mtgmediagroup . com Brittney Hackbart , Associate Art Director 1.312.274.2216 E-mail : bhackbart @ mtgmediagroup . com Michelle Villadolid , Freelance Design E-mail : mvilladolid @ mtgmediagroup . com Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Raini Hamdi , Pippa Isbell , Barry Keefe
PUBLISHING David Wood , Publisher 1.312.274.2225 dwood @ hotelsmag . com
INTERNATIONAL ADVISORY BOARD Nakul Anand Executive Director , ITC , Gurgaon , India Stephen Bartolin Chairman , The Broadmoor , Colorado Springs , Colorado Geoffrey Gelardi Managing Director , The Lanesborough , London Kirk Kinsell President & CEO , Loews Hotels & Resorts , New York City Alex Kyriakidis President , Managing Director , Middle East and Africa , Marriott International , Dubai Christopher Nassetta President , CEO , Hilton Worldwide , McLean , Virginia Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta Paul Sistare President , CEO , Atlantica Hotels International , São Paulo Susan Terry Vice President of culinary , food and beverage operations , Marcus Hotels & Resorts , Milwaukee , Wisconsin
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Monumental moments
June produced some monumental moments for the hotel business , ranging from Brexit to U . S . hoteliers returning to Cuba and reports that the new Chinese owners of the famed Waldorf Astoria in New York plan to turn the icon into more of a condo building than a hotel . I won ' t even get into ongoing consolidation rumors and realities and unadmitted warfare with disruptors and OTAs . It all speaks to the speed of change and the need for owners and operators to be ever so nimble .
First , let ’ s consider Brexit . No surprise , the global business community reacted very negatively to the shocking news , which will no doubt have a negative impact on U . K . hoteliers ’ labor requirements and
Editor In Chief cost of goods , as well as entry constraints and a slowdown in business travel . However , the U . K .’ s secession from the EU should also mean a weak British pound nearterm , which should drive local tourism to new heights . Outwardly , it could lead to low interest rates , which will bolster the U . S . reputation as a safe harbor and prop up property values for an extended period of time . Brexit should also push the hotel community to insist on changes to hiring restrictions as a result of upcoming immigration policy changes and request a reduced VAT to be more in line with the lower rates of other European countries . One is left to hope this is not the black swan event that leads to European , if not global , recession .
The story in Cuba , on the other hand , is one of hope , renewal and potentially further capitulation between the U . S . and the small island nation with so much culture and hospitality to offer the world . Thawed relations could lead to faster infrastructure development , the creation of a new tourism hot spot for the region – unfortunately perhaps at the expense of other Caribbean islands – and the rejuvenation of a nation . Starwood earned the honor of becoming the first U . S . -based hotel operation to fly a U . S . brand flag their since the 1959 revolution , and no doubt it will be very interesting to watch how the company manages with state-run owners such as Grupo Hotelero Gaviota and Gran Caribe . The other U . S . giants won ' t be far behind .
In New York City , more than a few tears were shed when news broke in late June that new Chinese owner Anbang Insurance Group decided there is more value in the 85-year-old Waldorf Astoria by removing as many as 1,100 of the 1,400-plus hotel rooms to make way for private apartments . The stories hoteliers can tell about their careers that took them through the kitchens and back offices of this institution will become even more legendary when it closes for three years to pour a reported US $ 1 billion into the property to change its tone , flavor and feel . My only question now is where will the hoteliers ’ secret society , The Tavern Club , meet in November ?
All of these stories serve to teach the industry that there is no room for complacency , no idea unthinkable and that even in dark hours revitalization is taking place in this ever-resilient global business . Now , everyone had better start thinking about what could happen next .
July / August 2016 hotelsmag . com 7