A truly distinguished group of hospitality executives shared their perspectives on the changing hotel landscape, along with their thoughts on navigating this unprecedented time. With more than 3,700 people registered for the webinar, participants heard from leaders across the industry.
Rod Clough, President, HVS Americas, began the session with a forecast of what is in store for the industry, noting “This year, we expect an 11.5-percentage-point increase in occupancy, with the greatest gains in the latter half of the year, and a 7.5-percentage-point increase in 2022. Occupancy should be mostly recovered by 2023, with full ADR recovery following in 2024.”
Justin Knight, CEO of Apple Hospitality REIT commented that “There is pent-up demand on both the leisure and business sides. Recovery will depend on vaccine distribution and employer protection to free up the demand that is there. There has been help from the government, and I anticipate there will be more.”
Dave Johnson, Executive Chairman of Aimbridge Hospitality, added a note of caution, stating “I think 2021 will be a transition year and will also depend on asset class. Businesses need to feel comfortable to allow their employees to travel.”
Chip Rogers, President & CEO of AHLA, who also moderated the session, noted that “We’re entering into a new year with a lot of promise, but we recognize we are in a global event that can change our industry.”
Heather McCrory, CEO, North & Central America of Accor, shared her thoughts on the opportunities the new environment has created, stating “More and more people want flexibility in the workplace. With the trust that we can be productive from wherever we are, there are new ways of working as people extend vacations and can work from holiday locations. This creates new opportunities for our industry.”
Biran Patel, Chairman of AAHOA, pointed out that “The pandemic has made everyone step up their game. In fact, some owners have started projects and continued development despite low occupancy due to discounted construction costs.”
In the closing of the session, Geoff Ballotti, President & CEO, Wyndham Hotels & Resorts, noted how integral the hospitality industry is to the economy, adding “The hospitality industry has a unique ability to be part of the solution and participate in the vaccination effort, with hotels serving as vaccination centers. We have the geographic reach and infrastructure and footprint across the United States.”
HVS is the world’s leading consulting and valuation services organization focused on the hotel, restaurant, shared ownership, gaming, and leisure industries. Established in 1980, the company performs more than 4,500 assignments per year for virtually every major industry participant. HVS principals are regarded as the leading professionals in their respective regions of the globe. Through a worldwide network of over 47 offices staffed by 300 experienced industry professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. For further information regarding our expertise and specifics about our services, please visit www.hvs.com.