Unfiltered Thoughts from The Hospitality Show in Denver

I was fortunate to attend The Hospitality Show in Denver this week and I’m back home with some thoughts about the state of the industry and the event itself.

First, it’s always great to see owners, operators, consultants and suppliers gather to share knowledge and make connections that often turn into partnerships. It’s not out of the realm of possibility to think that a brief introduction over a coffee at an event could end up making a significant impact on the future of our industry.

I love catching up in person with folks I’ve developed relationships with over the years, running into current partners and former colleagues in the hallways or on the showfloor – and the opportunity to foster relationships alone is worth the price of admission.

No matter what your role, it’s important to keep your finger on the pulse of the industry at large, and the sessions I attended were informative and engaging. “Uncertainty” remains the most frequently used word on stage, and a K-shaped recovery is now clear, with seemingly nothing stopping growth in the luxury segment, while hotels on the lower end of the chain scale are experiencing demand and revenue slowdowns.

“The rich are getting richer and the poor are getting poorer,” said Ozan Ozkural of Tanto Capital Partners in a discussion with Greg Kennealey of Peregrine Hospitality. “We are no longer operating in a cycle, but a transition, and in this era of volatility you must be able to reinvent yourself. Resilience will be key.”

With uncertainty on the horizon, hoteliers continue to hammer home the importance of optimizing revenue strategies in ancillary departments outside of rooms, as well as a laser-focus on protecting profitability by closely examining how revenue is flowing through to the bottom line.

Dynamic Pricing Outside of Rooms

In a session titled “Show Me the Margins,” Jackie DeChamps of Towne Park said success today goes beyond RevPAR, stating that 32% of a hotel’s revenue comes from outside of rooms. Frank Pitsikalis of Agilysys agreed, suggesting Revenue Per Guest is a more applicable measurement of success in hotel operations today.

The panel suggested that focusing on margins is not solely about cutting labor costs – reminding the audience that we’re in the business of providing smiles and without personal hospitality, hotels become a commodity.

Instead, Scott Strickland of Wyndham Hotels & Resorts outlined his idea of “infinite SKUs,” suggesting that every amenity in a hotel – even the gym – should have its own SKU to help operators and owners better track margins. “It enhances your ability to productize the entire offering,” he said.

Strickland also suggested improvements around dynamic pricing for room upgrades and amenities, which he said is a “blind spot” for current Revenue Management Systems.

Towne Park offers a dynamic pricing solution for parking spots, including valet and EV charging, and DeChamps said GSS scores at partner hotels have not been negatively affected. “The intersection of the experience and the price is what matters,” she said. “When the experience matches the price, you will not see an impact on your GSS.”

The Independent Approach

Jennifer Barnwell of the Curator Hotel & Resort Collection led an engaging discussion on the power of remaining independent in today’s landscape, as well as the benefits that come with joining a soft brand.

“If you’re passionate and creative, remaining independent really gives you the benefit of telling a unique story,” said Chris Walker of Leading Hotels of the World. “Maybe you don’t want to be dictated on when and how you do a PIP. Independent hotels give you freedom and flexibility.”

“We’re on a precipitous – independent luxury is one of the fastest growing segments,” added Gregory Day of the Malibu Inn Beach Hotel & Spa. “Younger generations want authenticity – different experiences than their parents had. They want hotels to meet them on their terms.”

The Power of Zero Party Data

Operators continue to explore new ways to personalize their guest experiences, and collecting and actioning guest data continues to be the best approach. While in the past GMs would listen in on conversations in the lobby to gather key information that could later be used to surprise and delight, hoteliers at this event suggested using direct conversation with guests to gather as much information as they can.

“It’s the perfect way to create a differentiator,” Barnwell of Curator said.

Panelists told unique stories from surprising guests with framed photos of their pets to a hot air balloon experience for a recently engaged couple. They suggested not only soliciting information directly from guests but then ensuring to action that information.

“If you take the data and actually do something with it, they’ll appreciate it, and you can take it further and ask for more information,” said Dina Belon of Staypineapple Hotels, which recently completed a “major tech stack changeout” that now provides employees with information on key guests ahead of time.

Zero-party data – information that comes straight from the guest – “gives us both certainty and scalability; it’s the only data we get that we know is true to its core,” said Brandon McConnell of Delavan Lake Management.

Scaling the Family Hotel Business

It’s always inspiring to hear the story of Asian American hotel owners – a group that makes up a majority of hotel ownership in the U.S. – and Jyoti Sarolia of Ellis Hospitality has been gracious with her time at many industry events. Through sharing her family’s story of multi-generational hotel ownership and the challenges of being a minority woman business owner, Sarolia reminds us of the opportunities hospitality provides, as well as the payoff that comes from a career of dedication and hard work.

Sarolia’s family started with one hotel, and over her career she’s led an effort to scale the business to six hotels currently and launch a management company to provide other owners with the best practices her family has learned over generations of running hotels.

“No hotel I own was given to me,” she said. “This is the result of my husband and I each working three jobs for years. Everyone in this room – you can buy your own hotel. A lot of older folks have been in this business 40 years and their children don’t want to be in the hotel business – and these hotels will become available.

“I feel good that I’ve taken what my parents worked very hard for and helped sustain it, even improve it,” she continued. “This industry is all about risk – you have to dream and be willing to take the risk.”

Trip Notebook

• The Hospitality Show, hosted by the American Hotel & Lodging Association in partnership with Questex, is in its third year after a controversial launch during the same week as HITEC and less-than-stellar reviews in Year Two. This is my first time attending, and I enjoyed the size of the show, the quality of the educational sessions, and saw plenty of familiar faces.
• It’s nowhere near the size of HITEC and seems less focused on hotel technology as it once was, with only a smattering of tech solutions among linens providers, cleaning solutions, beauty products and an abundance of tableware and flatware providers.
• The decisions to combine The Hospitality Show with the Bar and Restaurant Expo seems out of place, with two totally different audiences looking for totally different things. A better connection could be made by focusing more on hotel F&B – curating vendors and content for hotel F&B executives, who operate much differently than a standalone bar or restaurant.
• Excellent food vendors are offering samples at their booths, but the food options for breakfast and lunch on the showfloor were your typical bland tradeshow offerings. Seems like a missed opportunity to have vendors in food trucks serving actual meals.
• I absolutely loved my stay at The Slate Denver, part of the Tapestry by Hilton Collection and operated by Stonebridge. The hotel is a great example of the power of soft brands, an old trade school converted into a hotel with no detail overlooked. From the lobby to the Teacher’s Lounge bar to the rooms, there are nods to the building’s history throughout, each telling a story that transports you briefly into a different time and place.