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properties . “ Our numbers and leads are far better than 2019 and next year ’ s pace is strong — way above where we were in 2019 .”
The group makeup has skewed toward SMEs , or small to midsize enterprises , with groups from 10 up to 100 . Strebel said Omni hotels are seeing an increase in short-term meetings , maybe for training or regular meeting purposes . “ Spending ,” he said , outside rooms is way up , in wedding , catering , golf — people spending more on experiences .”
Strebel said that Washington , D . C ., where it has one hotel , the Omni Shoreham , was the last group market to recover and “ now is on fire .” Associations , meanwhile , are still slower to come back .
Sloan Dean , CEO of Remington Hospitality , a thirdparty manager , is seeing the same trends as Omni ’ s Strebel outlined . Group demand , he said , is exceeding 2019 levels — up 33 % year-over-year for Remington ’ s hotels — and bolstered by banquet and catering , which is up 25 %. “ Before COVID ,” he said , “ we were selling mostly just rooms . Now , groups are arranging dinners on site as opposed to going out . So bar and catering is up and that helps profitability .”
Added John Murray , president and CEO of Sonesta International Hotels , “ People don ’ t come to the office as much , but still need to get together .”
He said Sonesta ’ s urban properties are up , driven by
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The Omni Shoreham in Washington , D . C ., a city where group business fell off the map but has now come back with gusto .
leisure and a gradual recovery of corporate business .
SHIFTING BUSINESS The return of group business is another drop in the hospitality cauldron that hoteliers stir up to grow revenue and increase profit . Meanwhile , as business returns , the shape of it is having a change .
John Cohlan is CEO of Margaritaville , a brand that knows a thing or two about leisure … and cheeseburgers . He said the pandemic ’ s impact on the way we live and travel has left an indelible mark . The biggest shift he said : “ Friday is a permanent snow day ,” comparing every child ’ s winter wish to how the workforce now treats the end of the work week . “ Tuesday through Thursday people are in the office but throwing in the towel on Friday . That ’ s permanent .”
Having that Friday to
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Monday cushion has been a boon for hotels , which are seeing higher weekend demand and higher rates .
Jeff Wagoner , president and CEO of Outrigger Hospitality Group , shared the same sentiment as Cohlan , only with a small tweak since a preponderance of his hotels are in Hawaii and other warmweather locales . “ Friday is a beach day ,” he said , adding that it ’ s shaping up for a strong summer season .
He said that travel patterns globally are bit uneven . Japan , a huge feeder for Hawaii , “ is still slow to come back ,” Wagoner said , only at 40 % of prepandemic numbers .
It ’ s not all serendipity . Some of the pent-up demand in the wake of the pandemic has ebbed and many travelers , especially affluent travelers , have exhausted domestic travel and recalibrated their travel
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intent . “ The higher-end traveler is now going to Europe and not domestic ,” Strebel offered . It ’ s resulted in rates coming down some from their heady highs .
Remington ’ s Dean agreed with the Europe assertion . “ It ’ s a good argument ,” he said . Leisure demand , he said , has stabilized . “ We are not getting double-digit growth and resorts have pulled back a few basis points .” However , as demand in resort and secondary markets has curbed , urban is now up , Dean contended . “ They are feeling better , especially as group continues to truck along . That ’ s a forward indicator .”
At Outrigger , Wagoner said he is starting to see a shift and normalization three years after COVID . At the outset , the first accommodations to sell out were beachfront bungalows and suites . That ’ s slowed , Wagoner said . “ They were pent-up trends . It ’ s leveling out .”
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Jul / Aug 2023 hotelsmag . com 13 |