From the desks of the Hotel News Now editorial staff:
- Hotel CEOs: War for talent is intensifying
- PwC: Near-term lodging outlook remains choppy
- US-China trade war could cost $585 billion in 2021
- Smaller brands making mark in luxury space
- Consumers can’t save the economy much longer
Hotel CEOs: War for talent is intensifying: Speaking during the recent Hotel Data Conference, CEOs from Interstate Hotels & Resorts and Ryman Hospitality Properties said finding good talent is a massive challenge in the industry right now, writes Hotel News Now’s Sean McCracken.
Interstate’s Mike Deitemeyer said labor issues rank above other top concerns such as supply growth.
“It’s really about people and talent,” he said. “At the end of the day, I’m selling talent and systems. So it’s about what we do to attract great talent, how to keep them and what we do to motivate them going forward.”
He added that Interstate has been focusing on initiatives such as company culture and leadership.
“In my experience and what we see, people leave because of bad leaders,” he said. “So we’re investing heavily (in leadership development). Are there people who leave for 50 cents an hour? Of course. But if you have an understanding of what they need to feel nurtured and successful and you’re developing the right leadership competencies, you can mitigate some of that.”
PwC: Near-term lodging outlook remains choppy: According to PwC’s recent August 2019 report, the U.S. lodging industry “appears to be at an inflection point,” mostly driven by a mix of declining demand and economic and global trade worries, and the remainder of the year looks choppy, the report states.
“In 2020, lodging supply and demand growth are expected to moderate, resulting in a very slight decline in occupancy. Rising inflation levels are expected to support marginal growth in (average daily rate), resulting in an expected RevPAR increase of 1%, the lowest in a decade.”
U.S.-China trade war could cost $585 billion in 2021: The ongoing trade war between the U.S. and China is slowing the global economy, and uncertainty around it could end up lowering world gross domestic product by 0.6% in 2021, according to a Bloomberg Economics report, which is equal to $585 billion.
“The U.S. president’s social media posts on trade, many of which are about China, sometimes appear several times a day and other times not at all. His contradictory takes on the progress of negotiations with Beijing send a chill through businesses that are making decisions about investing and hiring,” the news outlet writes.
China would be hit the hardest by the uncertainty, Bloomberg writes.
Smaller brands making a mark in luxury space: In 2018, $26 billion was sold in luxury travel by a network of more than 20,000 travel advisors, Forbes reported from Virtuoso Travel Week, and some believe there has been a strong tilt towards smaller luxury brands.
Chris Gabaldon recently joined Auberge Resorts Collection, serving as COO, from Marriott International. Auberge, which has 19 properties in its portfolio, is growing though not for growth’s sake. But when asked if there has been a tilt towards the smaller brands like his, Gabaldon told Forbes “Absolutely. It’s more than a tilt, it’s a very strong shift.
“Consumers want authentic,” he told Forbes. “For the bigger companies, a lot of the ownership is financial (companies), whereas for us, it’s local entrepreneurs. They bring lots of relationships and insights about their local communities.”
Consumers can’t save the economy much longer: Casino, restaurant and hotel billionaire Tilman Fertitta said he’s operating in a “very conservative way” when it comes to business as he fears a global downturn, CNBC reports, and he warns that America’s consumers can’t save the economy much longer.
“Remember, everybody fills their tanks. You can only buy so many new cars. You can only buy so many new TVs. You can only lose so much in a casino. So, at some point, the consumer is full. They used up their credit. I think we’re getting to the end,” he told CNBC.
Compiled by Dana Miller.