New deals few , far betweeN
stations in public areas will be the norm going forward ,” says Holger Jakobs , vice president of sales and marketing for Wharf Hotels , Hong Kong .
Wyndham posts its cleaning schedule on Weibo ( often compared to Twitter ). “ Guests want to be reassured ,” He says . “ We share videos and pictures , it ’ s a major part of building confidence .”
Many hotels have done a total rethink on sanitation and cleaning procedures . “ Guest safety and cleanliness have always been priorities . The current crisis has simply increased the urge of additional protection and awareness ,” Jakobs says .
High traffic and public areas receive more frequent attention , with in-room items rotated after every checkout . Wharf marks elevators so linens heading to the laundry don ’ t contaminate fresh linen headed to rooms being refreshed . Cleaning schedules are posted for full transparency .
Will social isolation lead to continued distancing ? Already room service has returned to popularity . China hoteliers talk of cutting back on buffets in favor of more a la cart , and replacing happy hour get-togethers by distributing individualpackaged snacks . Capella Shanghai is entirely villas , boasting its own air circulation system , and another throwback : actual windows . Even so , villas are rotated so no guest stays in a room that has been used within the previous 24 hours , says Stephanie Zhang , director of marketing communications .
Langham ’ s Leser compares the transition to the time after the Twin Towers attack . “ Before , it was all about seamless travel , how quickly you could be moved through an airport ,” he says . “ After 9 / 11 , it was ‘ take your shoes off ,’ it was all about safety .” So , masks and cleaning gel are likely to be standard in-room amenities . Hotel design might change , he speculates , with reconsideration of things like air conditioning and circulation .
Langham repurposed its China operation , Leser says , keeping all hotel staff on payroll , using the downtime for retraining and renovation . “ Now that we are reopening , these properties are in the best shape ever .”
And he says social media feeds were less about selling then reconnecting with the community . “ It ’ s something we ’ ve always emphasized , and continue to do so ,” he says . “ The message is , we all went through this together .”
New deals few , far betweeN
Getting new hotel development deals done is no easy feat as the COVID-19 crisis plays out . Except in Asia Pacific and a few other contrarian plays , new construction is mostly off the table .
This consensus point of view comes as STR reports the U . S . hotel industry hit a record end-of-month total of 214,704 rooms under construction in March 2020 .
“ The number of rooms in construction will likely remain high , just as it did during the pre-recession peak ,” says Jan Freitag , STR ’ s senior vice president of lodging insights . “ Because of the coronavirus pandemic , the industry is no longer operating in a record-setting demand environment , so there isn ’ t the same rush to open hotels and tap into that business . In addition to a lack of guests awaiting new hotels , there are also limitations around building materials and potential labor limitations from social distancing . With all of that considered , projects are
The Universal Studios Grand Hotel at kempinski ’ s Universal resort Beijing will be operated by key international Hotels .
likely to remain under construction for a longer period .”
Transactions will pick up in 2021 , says Jon Bortz , chairman , president and CEO , Pebblebrook Hotel Trust . “ But I can ’ t imagine anyone providing a construction loan for four to five years . Unless it ’ s an all-cash deal , it ’ s not going to get done .”
More likely are portfolio deals that can be repositioned or flipped . IHG announced in mid-April that it had signed a management agreement with Shanghai 21st Century Hotel Co . for what will become the Regent Shanghai Pudong . The luxury property , formerly the Four Seasons Hotel Pudong , was slated to open in May and is the first new Regent since IHG acquired a 51 % stake in the Taiwan-based chain in 2018 . As part of the agreement , IHG will manage the tower ’ s residential component . IHG is also renovating the InterContinental Hong Kong and plans to reopen it as a Regent in 2021 . New Regents are planned to open in Vietnam later this year ; in Bali , Indonesia , in 2021 ; and Kuala Lampur , Malaysia , and Chengdu , China , in 2023 . Other deals should reach completion : Martin Smura , CEO and chairman of Kempinski Hotels , says the mega Universal Beijing Resort , totaling 6,000 keys , is on schedule .— Mary Scoviak
June 2020 hotelsmag . com 9