What general challenges and opportunities will emerge in the Americas during the next 12 months from a development standpoint?
The challenges of the next 12 months will continue to be the ones we’ve been working through. Hotel owners, hotel organizations and industry groups like AHLA have collaborated to ensure hotel operations are running safely and effectively. As we look ahead, we need to focus on addressing deferred maintenance and enhancing quality assurance efforts that are key to guest satisfaction. Our success in achieving those objectives will be a significant part of supporting ongoing growth for the industry.
We face very interesting opportunities coming out of the pandemic and this recovery may be unique. As the COVID19 concerns diminish, we expect to see business bounce back quickly. Now is the time for forward-looking hoteliers to invest and ensure they are prepared to have the right rooms in the right location run by the right teams. We have an exciting opportunity to be opening new product into what could be a very strong business cycle.
What do you see in terms of transactions and investments during the next 12 months?
This is the slowest transaction market the industry has ever seen. Brand owners are waiting for greater clarity on how the recovery will play out – particularly potential sellers who are well-positioned from a liquidity perspective and don’t need to sell.
As the recovery continues, we expect more of these sellers to come to the table because we believe that consolidation in this industry is inevitable, as size and scale matter more than ever before. In addition, as travel demand normalizes – and it will – banks will feel more comfortable financing new projects. We should be confident in our industry, our hotels, and our people. With that mindset, we will continue to see transactions and investments coming back and potentially accelerate coming out of this crisis.
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?
It is important to maintain rates so that pricing supports operations. Professional revenue management services can make a difference now more than ever. Owners should reinvest in their facilities and operations as much as they can, through capital improvements and restocking soft goods and amenities. We are working with vendors to make key products available and affordable to owners right now as hotels get their operations back up to speed. I recommend that hotels take a close look at their inventories, so they do not find themselves with limited supply that impacts their ability to operate and recover.
In addition, we are a service industry and delivering great service takes great people. In the long run, my belief is that the winners in the recovery will be the hotels that have the best teams. Find, nurture, and take care of great talent. Embrace diversity and inclusion so that you can benefit from all team members in delivering value to our guests.
What segment of the hotel industry is best positioned to have a robust rebound from the pandemic? Why?
For Wyndham Hotels & Resorts in North America, drive-to leisure destinations and ongoing business from the everyday business travelers like infrastructure workers have led the recovery. That business has created momentum primarily for our economy and midscale segments. Recent government stimulus efforts and the demand brought on by Spring Break have positively affected room revenue and are hopeful signs of what is ahead for us and our industry.
The big question on everyone’s mind is when group and overall business travel will rebound, which will undoubtedly help with driving additional recovery for full-service properties. Progress with vaccines and immunity is encouraging and we are optimistic about the impact we’ll see on business and group travel. I just got my first shot in Texas recently and I am excited to complete the vaccine and get on the road more often too.
What’s the one takeaway people should know about Scott LePage?
For me, life and work are about service. From my time in the U.S. Navy to what I do today, it is why I do what I do, and it is what I love about our industry and Wyndham Hotels & Resorts. Getting the opportunity to contribute to the goals and objectives of others is the best type of work and provides the highest reward. As a leader in a great organization, I get the privilege to serve alongside a global team that is dedicated to the concept of service in every respect.