Hoteliers deal with uncertainty conditions

While the general outlook for the U.S. hotel industry remains optimistic, owners and operators know their business can change on a dime.

According to members of the Lodging Industry Investment Council, they have adjusted their strategies accordingly to account for the new industry normal, which is largely optimistic but still has elements of uncertainty surrounding it.

For hotel operators, that means squirreling away nuts for the impending winter and keeping a tight rein on elements under their control. For hotel owners, it means maintaining low leverage and discipline when it comes to deals.

Operators ‘maximize the moment’
“We have to continue to operate optimistically in terms of how we prepare for the volume of business coming our way, but be prepared—as always—for any surprise,” said Pace Cooper, president and CEO of Cooper Hotels. “We continue to talk about being prepared for a downturn and how we’ll pivot quickly when it happens, but in the meantime, we’re operating in a way to maximize the moment and put marbles away.”

Many operators on the LIIC roundtable—which was held before the Americas Lodging Investment Summit—said they’re making capital-expenditure and labor investments while the sun shines.