Editor ’ s diary
Passion for HosPitality
EDITORIAL Jeff Weinstein , Editor In Chief 1.312.274.2226 jweinstein @ hotelsmag . com Barbara Bohn , Managing Editor 1.312.274.2209 bbohn @ hotelsmag . com Bert Ganzon , Senior Art Director 1.312.274.2227 bganzon @ mtgmediagroup . com Steve Vanden Heuvel , Vice President / Creative Director 1.312.274.2218 svandenheuvel @ mtgmediagroup . com Brittney Hackbart , Associate Art Director 1.312.274.2216 bhackbart @ mtgmediagroup . com Carolina Martinez , Freelance Design cmartinez @ mtgmediagroup . com Bill McDowell , Vice President , Editorial Director 1.312.274.2201 bmcdowell @ mtgmediagroup . com
CONTRIBUTING EDITORS Judith Crown , Megan Rowe , Juliana Shallcross , Erin Sund
PUBLISHING David Wood , Publisher 1.312.274.2225 dwood @ hotelsmag . com Bill Kinross , Vice President , Group Publisher 312 / 274-2214 bkinross @ meatingplace . com
INTERNATIONAL ADVISORY BOARD Nakul Anand Executive Director , ITC Ltd ., Gurgaon , India Stephen Bartolin President , Broadmoor Sea Island Co ., Colorado Springs , Colorado Alex Kyriakidis President and Managing Director , Middle East and Africa , Marriott International , Dubai Christopher Nassetta President and CEO , Hilton Worldwide , McLean , Virginia Monika Nerger Chief Information Officer , Mandarin Oriental Hotel Group , Atlanta Paul Sistare President and CEO , Atlantica Hotels International , São Paulo Susan Terry Vice president of culinary and food and beverage operations , Marcus Hotels & Resorts , Milwaukee , Wisconsin
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HOTELS ( ISSN 1047-2975 ), Volume 54 , Number 5 . Published monthly ( except for combined Jan / Feb , July / Aug and Nov / Dec issues ) by Marketing & Technology Group Inc ., 1415 N . Dayton St ., Chicago IL 60642-2643 ; 312- 274-2200 ; fax 312-266-3385 . Periodicals postage paid at Chicago IL and at additional mailing offices . Copyright © 2020 Marketing & Technology Group Inc . All rights reserved . Reproduction in whole or part without written permission is prohibited . POSTMASTER : Send address changes to HOTELS , 1209 Dundee Ave # 8 ., Elgin IL 60120 . SUBSCRIPTIONS : call U . S . only 847-697-2111 or e-mail PrintCirc @ hotelsmag . com to begin , change or cancel a subscription . Select qualified readers may receive HOTELS for free . Paid subscriptions : USA US $ 190 1-year , outside USA $ 310 1-year . Except for special issues where price changes are indicated , single copies are available for US $ 30.00 USA and US $ 45.00 foreign ( plus postage ). Canada Post Publications Mail Agreement # 40612608 . Canada Returns to be sent to Asendia , 1031 Helena Street , Fort Erie , Ontario , Canada L2A 4K2 .
WhaT Will re-emergence look like ?
The fallout from COVID-19 remains in its early stages . The return to profitability will be long and arduous , and some owners will not survive this lengthy disruption . For example , Sunstone Hotel Investors in mid-May was considering mailing the keys of the 478-key Hilton Times Square to its lender . Other , less liquid , property owners were edging closer to falling into receivership as loan forgiveness became less viable .
With these circumstances in mind , this month in our Special Report we took a page from HOTELS quarterly publication , HOTELS ’ Investment Outlook , and talked to the owner / investor
Editor In Chief community about the way forward for re-financing , as well as the potential for M & A and consolidation . The bottom line is that there are no easy answers to stem the tide of fiscal bleeding . At the same time , with investment vulnerability comes opportunity , and well-capitalized groups are starting to circle , smelling blood in the water with a chance to acquire assets at a discount . Brands will likely benefit as assets are sold and converted . It will be their best opportunity to grow their systems , as new development is stagnating for now and into the foreseeable future .
This sobering news came as many properties were , in fact , preparing to re-open , for better or worse , anxious to jumpstart a recovery , bring staff back to work and tackle the new normal .
By mid-May , industry leaders were starting to say the worst of the crisis was behind them and the way forward was filled with , among other things , new and expensive hygiene protocols , which may or may not drive consumer confidence . Owners and operators are first focusing on regional and drive-to business , likely with deals laden with a variety of incentives . No doubt , maintaining rate integrity will be preached far and wide as discounting is not supposed to induce demand , but there is also no doubt cashstarved owners are going to do whatever it takes to fill rooms .
Other than overt discounting , creativity in services and amenities will become the order of the day . Operators will turn over every stone to entice consumers with new post-COVID forms of comfort and escapism .
In-room amenities are being upgraded , hand sanitizer is available everywhere and furniture in public spaces is being rearranged to comply with social distancing standards . Some hotels are creating personal pods for smaller groups to gather in restaurants and bars . The Edgewood Hotel in Lake Tahoe , Nevada , is serving individually wrapped s ’ mores packages , available for guests to pick up at the front desk and roast outside at the fire pit . Room service is being enhanced and healthier snacks are being sold at makeshift grab and go stations . Keyless guest rooms and virtual checkout systems are being implemented wherever possible . Work stations are being set up in-room and in now-empty ballrooms .
Imaginative thinking will separate the winners in the new normal . I only hope that the pending re-emergence of travel continues to trend in the right direction .
June 2020 hotelsmag . com 5