Hotels Global Asset Management Report 2022
Global lodging has turned a corner in 2022
- Andrea Grigg
- Xander Nijnens
- Rastko Djordjevic
- Edouard Schwob
- Geraldine Guichardo
As we move to the end of the year, concerns over a recession in the US, the ongoing Ukraine/Russia war, economic and political volatility in Europe, geopolitical tensions between the US and China, coupled with uncertainty surrounding lodging demand’s full recovery create a complex operating environment for hotels at all levels. Owners and operators will need to embrace a defensive approach to asset management, remaining razor focused on their operating structures as they continue to navigate the challenges of running a hotel during such unprecedented times. As such, the role that hotel asset managers play continues to be critical, with hotel owners requiring strategic management of their hotel portfolios.
As we navigate the 2023 budget season with a focus on optimizing profitability and mitigating operational risks, there are four recommendations we urge hotel owners to consider:
- Transform labor strategy to attract and retain top talent
- Push rates judiciously and keep disciplined cost management solutions employed during the pandemic
- Understand the evolving nature of lodging demand and intentionally drive ancillary revenue to optimize profit
- Capital expenditures should aim to protect market share and enhance property value
