TRENDING
WOJO Mercure Montmartre , Paris
HOTELS REFORMULATION :
THE FIRST STEPS IN A LONG ROAD
By OSVALDO CHUDNOBSKY COHEN , MANAGING PARTNER , HORWATH HTL BRAZIL
COVID-19 caused issues to erupt at turbo speed , impacting the heart of the hotel and tourism industries . The actual final impact is still to be determined , but the pandemic is forcing deep changes in what we understand as today ’ s hotel concept .
In some locations , it is very clear that the corporate and MICE segments will reduce their sizes , composition and ability to pay previous rates once the pandemic is tamed .
This is , for example , the case of some Brazilian products focused on foreign business travelers . They will only improve their revenue after sanitary and business conditions improve . A bit more complicated will be conditions for huge hotels attached to massive fairs , congresses and conventions facilities . And finally , the key urban markets have been invaded by Airbnb and similar non-traditional lodging inventory , reducing historic levels of occupancy .
These three synergistic factors have created the perfect storm for hotels and much uncertainty . As a result , sooner or later , some “ relevant ” hotels will need a “ relevant ” reformulation .
Simultaneously , in a country like Brazil , with a depreciated currency and a huge domestic market not easily able to fly abroad , the tourism segment is growing in all directions . Also , fractional ownership is booming as mechanisms develop
16 hotelsmag . com May / June 2021