make a first impression , so better to knock it out of the park when an operation is truly ready to do so , as opposed to limping to an opening date with less than what the outlet was envisioned and pro-forma ’ ed to be ! Also , if there is an opportunity to incorporate or focus on opening rooftop pool / bar / F & B outlets or other outdoor dining spaces , these have proven extremely popular and have driven significant revenues , given their open-air and general appeal ; it is almost a must-have in the lifestyle space .
. Seek creative staffing solutions . Staffing challenges have also been widely experienced throughout the industry , as many hotels were forced to reduce staff significantly due to business levels and / or to merely survive . Today , hotels are challenged to fill positions for a myriad reasons , but for a new hotel , the effects can be even greater , with no prior labor pool from which to draw . Some strategies to consider include looking to alternative sources of labor . For instance , the gig-work environment , often employing college aged workers looking for freedom to pick up work as desired and across varying departments , has proven useful in several of our newly opened hotels . If it is possible to staff “ reserves ,” consider this as an insurance policy for the time that all outlets or departments have been effectively opened . If these employees can be cross utilized in the meantime , all the better .
. Strengthen your sales bench . In newly opened properties , consider staffing in sales over and above originally budgeted headcounts ( if you can find the talent !) in anticipation of the shortterm flood gates that are going to open , as well as effectively building relationships that will bear long term success . There were also many months of “ lost sales ” during the pre-opening period , which need to be made up , which also speaks to having a more robust sales effort right out of the gate .
. Consider “ shrinking the box ,” effectively selling and staffing to a reduced inventory . This tactic was employed by many hotels that were previously in a temporary suspension of operations and reopened after the worst of the pandemic subsided . This allows for a right-sized staff to meet market demand . Of course , another option would be to delay the opening altogether .
. Revisit retail space . If you have the luxury of retail space and can bring in tenants that can offer something you cannot ( e . g ., food and beverage tenants could be a welcome relief to the constraints of a hotel and what it is able to drive in food and beverage profitability ), consider adjusting your tenant mix . Alternatively , seek opportunities for repurposing or selling space to allow for more creative meetings and separation as needed . egies being employed to get through this challenging time are not a “ one-size-fits-all .” Decisions made today about staffing , segmentation and pricing , among others , can have a lasting impact on reputation , operational ramp-up , and future value . Conversely , new hotels may also have an opportunity to revisit business plans and adjust operations in ways that existing properties cannot . In all instances , seek counsel from experts who have lived through new hotel openings during COVID . Implementing lessons learned in real-time can save owners from costly mistakes that will impact performance today and asset value in the future .
LOOKING TO HOW OTHER HOTELS HAD PERFORMED IN PRE-PANDEMIC TIMES BECOMES AN INCREASINGLY DIFFICULT EXERCISE AND A POOR PREDICTOR OF FUTURE PERFORMANCE . ZERO-BASED BUDGETING IN LIGHT OF CURRENT CONDITIONS AND ESTABLISHING KEY PERFORMANCE TARGETS IS IMPERATIVE TO MANAGING HOTELS EFFECTIVELY DURING EARLY OPENING .
– DAN WALSH
Owners of newly opened hotels need to be mindful that strat-
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