A survey of hotel asset managers across the United States shows they are generally optimistic about the future while indicating some reservations about cost increases and shifts in demand.
The Hospitality Asset Managers Association (HAMA) conducted a Fall 2023 industry Outlook Survey in conjunction with its 2023 Annual Fall Meeting in New Orleans. Close to 80 hotel asset managers representing a third of the group’s total membership participated.
HAMA members are involved in asset management, financing, acquisition, and disposition of hotels and resorts. Hotel asset managers make decisions regarding capital investments, renovations, asset repositioning, operational policies, and management staffing.
One of the top-line findings from the survey was that 61% of those responding predict increases in revenue per available room (RevPAR) in 2023 when compared to 2019, before the pandemic. Information shared by media contact Chris Daly indicates that, while the industry is still recovering from the COVID-19 downturn, most hotel asset managers report seeing year-over-year improvements above 2022 performance even if it’s not quite meeting budgeted levels—sentiment reflected in some industry assessments. The increase is attributed to the return of more group bookings with some growth in transient business travel, though both are still below pre-pandemic levels. The uptick is especially evident among larger, upscale hotels with conference facilities versus those with room-only offerings.
The hotel asset managers expressed concerns about continuing staffing shortages, which are affecting labor costs as employers have to boost wages, pay overtime, and rely on contract workers to fill the void, according to information provided by Daly. That puts pressure on profit margins, which are already thin in such departments as food and beverage. Most responding hotel asset managers indicated they expect trends to stabilize more in 2024.
“2023 continues to provide positive results and optimistic outlooks from our membership,” Derrick Yee, HAMA president, says in a prepared statement. “The majority of our respondents are looking to exceed budgetary predictions for RevPAR and GOP, and many of the biggest concerns that arose during COVID, such as supply chain delays, appear to have subsided.
“While there is some concern surrounding issues like demand and cost increases, the overall outlook from the hospitality asset management perspective is positive.”
