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 and geopolitical tensions between the US and China.
Plus 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
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Contributors:
Andrea Grigg, Xander Nijnens, Rastko Djordjevic, Edouard Schwob & Geraldine Guichardo
JLL is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 94,000 as of March 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
