From Hurricanes To Rooftop Bars: 5 Trends To Watch In Hospitality
In today's competitive hotel market, owners and operators are constantly looking for new strategies to give them a leg up and watching out for the issues they need to stay ahead of. Hospitality executives at the sixth annual Bisnow Lodging Investment Summit East shared several trends they are seeing, from the importance of placemaking and food and beverage concepts to the challenges of the labor market and disaster preparedness.
For The Cordish Cos. CEO David Cordish, the success of a hotel comes from the atmosphere of the surrounding area. That's why the developer has focused on creating large-scale entertainment districts that draw visitors and leverage popular attractions like sports stadiums. "What we learned trying to do placemaking was it wasn't easy to come up with a hook," Cordish said. "Eventually what we drifted into was entertainment districts as our hook, and that's become a core of Cordish development." Cordish, the owner of the Live! hospitality brand, has completed or is planning entertainment district developments in Maryland, Philadelphia, St. Louis, Arlington, Texas, and other cities. "Lots of developers do mixed-use projects, the secret sauce of our company has been all of these projects have as a central core the Live! entertainment district," Cordish said. "What we discovered is that people want to be with other people, so you need to create entertainment. It turned out that's the one thing Amazon can't compete with, they can't deliver a social experience."
The U.S. unemployment rate in September dipped to a 49-year-low of 3.7%. The tight labor market has created heated competition among hotel companies to attract and retain talented employees, leading employers to put a greater focus on company culture. "You have to create an environment that people want to be there, because they don't have to be there. They can go somewhere else," Interstate Hotels & Resorts Chief Development Officer Greg O'Stein said. "You want to create an environment that's not toxic. Hotels with high turnover don't have the right leadership style." Hilton President of Americas Danny Hughes said it is important to establish clear ladders for employees to advance in their careers so they don't look elsewhere for better opportunities. "It's about creating opportunities for people to grow," Hughes said. "You need to identify the best talent and treat them differently, and go out of your way to give them room to grow." While the hunt for talent is commonly associated with high-paying, competitive jobs, the hospitality industry is propped up by thousands of low-wage workers. The macroeconomics surrounding that labor pool is concerning, Hospitality Investors Trust CEO Jonathan Mehlman said.
