What do you see in terms of transactions and investments during the next 12 months?
We closely monitor the marketplace, and we expect to see an increase in transactions as 2021 unfolds as lenders begin to envision an exit path on distressed hotels. We’re committed to working with developers and owners to navigate these challenges by streamlining processes and placing the focus of PIPs on condition and useful life. Bid/ask spreads continue to impact the number of successful sale transactions, but we’re optimistic that better clarity regarding the pace of recovery may generate more transaction activity.
What should hotel owners be doing now to prepare for the recovery, including the expected rush of U.S. leisure travelers hitting the road this summer?
Every day the pandemic news seems to be getting more positive as more vaccinations are distributed and as work continues to contain the virus. We know there is a lot of pent-up demand – people have put off major life moments like reunions, weddings, graduation celebrations and they are eager to get back on the road.
The first and most important thing we need to focus on is being able to service existing demand – ensuring we are appropriately staffed, and associates are trained so that they can deliver the best possible guest experience while also being mindful of the continuing need to keep our Commitment to Clean protocols in place. We are also watching the data to understand how demand patterns are changing or have changed and finding ways to capture that demand. Working to build confidence, trust, and meaningful relationships with guests as they begin to travel again will be paramount.
What are the key steps the hotel industry will need to take as the recovery emerges, and then gains momentum?
Our role, and the broader role of the industry, is to be ready for travelers when they are ready for us – this is essential to our collective recovery. We’ll continue to focus on ensuring every hotel and hotel leader has the tools necessary to take care of their business.
By implementing enhanced safety and cleanliness protocols, for example, hotels can help guests feel more secure traveling and meeting. As we navigate through the rest of the pandemic, we will need to be nimble and mindful of the day-to-day challenges but always respond with a mindset of delivering an exceptional experience, so that guests feel confident that they made a great decision to travel.
What silver linings have emerged for hotel owners, operators, and developers as a result of the pandemic?
Consumers want to travel again, and we know there is pent-up demand for both the leisure and business travel experiences that people have been missing for the past year. The silver lining is that our industry will survive and emerge better than before. We’ve learned how to act fast and navigate through an environment that changes day by day. For Marriott, our principles and values have guided our business recovery and will continue to guide our decisions in a world where there is no playbook.
What’s the one takeaway people should know about Liam Brown?
I love this business. My passion for the industry simply can’t be shaken by this pandemic. I have a belief that the business itself is remarkable; it presents you with daily challenges along with daily affirmation and rewards. It’s a wonderful business to be in, even in a challenging environment because our people and our culture are central to it. We have remarkable associates, great owners and franchisees, wonderful partners and incredibly loyal customers that are eager to stay with us again. I know we all want to see demand return and welcome guests back – and we will – better days are coming.