Hotel Asset Managers Group Expresses Frustration About Labor Shortages

Skift grip

Although the worst of the pandemic is behind the hospitality industry, executives generally don’t see a full recovery this year. It’s difficult for them to do so when the industry still hasn’t resolved its labor shortage problem.

Rashaad Jordan

Here’s a sampling of what the Daily Lodging Report provided its readers with last week. If you’re not a subscriber, you should be. Do not wait. Register now here.

sunday april 10

Of them Toronto boutique hotels, Templar Hotel (now The Slate) and The Beverley Hotel, are now operated through Sonder. Although the company has been compared to Airbnb, Sonder describes itself as a global hospitality provider, not a platform. Sonder rents the hotel or apartment and then takes over the day-to-day operations of the property. In January 2022, Sonder announced an expansion to Toronto with over 110 units under contract in four additional locations. These units are in addition to more than 120 live units spread across five existing Sonder locations in Toronto.

Skift Rating: Sonder, who has expressed a desire to disrupt the hospitality industry, is focused on adding high-end properties in popular destinations to its portfolio.

monday april 11

the Ching Ming Festival brought no relief to Casino Hotels in Macau with only 48,536 tourist arrivals over the three-day period. This was down -50% from the 2021 holiday. China’s Ministry of Culture and Tourism said about 75 million domestic trips were made during the Ching Ming holiday, down -26 .2% compared to last year. As for Macau getting worse, the main reason is the Covid situation in feeder markets, resulting in a 24-hour testing requirement for major markets. Macau had hoped it would drop from 24 hours to 48 hours for visitors to Zhuhai if Zhuhai reported no local Covid-19 cases for seven consecutive days. The last local case in Zhuhai was recorded on April 3. The problem is that Guangzhou reported at least 11 Covid cases on Friday, at least two of which were the Omicron variant. As a result, the Macau Novel Coronavirus Response and Coordination Center announced that the current 24-hour validity will remain in place. The Guangzhou health authority has issued a serious warning that the current situation may be more than the local outbreak caused by the Delta variant last May. Meanwhile in Shanghai, another 30,000 cases were reported on Sunday.

Remark : Despite China’s struggling hotel performance amid a surge in Covid cases, industry giants are still expressing optimism that business will resume in the country.

After its successful launch last month, the Radisson Hotel Group Americas Development the team took Radisson Inn & Suites on the road to drive momentum and brand awareness. Radisson Hotel Group Americas plans to sign 100 Radisson Inn & Suites over the next 12 months. Design elements that set the Radisson Inn & Suites apart include the café-inspired lobby and Creative Content Studio. The café-inspired lobby looks like an urban cafe while the Creative Content Studio offers state-of-the-art monitors, gaming chairs and high-speed internet for social media content creation or gaming video.

Remark : The Radisson Americas hotel group hit the road to promote the Radisson Inn & Suites is a positive step for a company that struggles to differentiate its brands.

tuesday april 12

Ennismore and ActivumSG Capital Management signed a long-term management agreement to bring Ennismore’s SLS lifestyle brand in Europe for the first time by opening a 490-room hotel on the seafront of Barcelona in the second half of 2024. SLS Barcelona will offer rooftop restaurants and bars as part of a distinctive food and beverage program. The hotel will include three swimming pools, a 772 square meter ballroom, a spa and beauty salon, and a wellness and fitness center. The project is an investment of ActivumSG’s fifth real estate fund as part of a pan-European hotel strategy launched by ActivumSG in Spain in 2015.

Skift Note: Ennismore, which merged with Accor last year, is well regarded in the hospitality industry for its ability to create cool brands.

Wednesday April 13

The Hospitality Asset Managers Association has released the results of its Spring 2022 Industry Outlook. A total of 84 asset managers, representing approximately half of the membership, participated in the survey. Highlighted findings include: A third of respondents currently expect 51-75% of their hotels to exceed budgeted RevPAR for 2022. Three-quarters of asset managers surveyed are more optimistic about the remainder of 2022 since the Covid variant -19 Omnicom subsided. Asset managers’ top three concerns are labor availability (90.48%), salary increases (70.24%) and supply chain delays (61.9%) ). 61.9% of respondents believe RevPAR will return to 2019 levels for the entire US by 2023, and nearly 90% of respondents are actively seeking acquisition opportunities.

Skift note: The group’s concerns about labor shortages echo those of executives who fear hotels will have enough staff for the busy summer season.

Thursday April 14

Hyatt Hotels Corporation is expected to have up to 90 hotels in India over the next five years as it seeks to tap into the country’s leisure and hospitality potential. The company opened its third Hyatt Centric hotel in India this week and will increase its total number of hotels to 50 by next year from the current 34 hotels. Hyatt said India was their third fastest growing market after the United States and China. They expect 50 hotels next year and in the next five years it could go up to 80-90 hotels. The brands they operate will be represented in the 50 hotels they will open as there is no new brand they plan to launch in India. Their new hotel is the Hyatt Centric Janakpuri New Delhi. The hotel opened Wednesday with 224 rooms.

Skift Note: India developing a much-needed cohesive tourism policy would go a long way in helping the country’s destination become the lucrative destination that Hyatt expects it to become.