Hotel REITs Are Resurgent, Operating Leaner After Pandemic
Yariv Ben-Ari, co-chair of Herrick's Real Estate Hospitality Group, spoke to Bisnow about the hospitality industry's financial resurgence, which is "imminent and ahead of schedule," according to the article. The article outlined how profits for many hotel groups and REITs grew in 2021 and how executives expect this upward trend to continue. Leaner staff, in particular, has helped boost revenue per available room, which is the main performance metric industry professionals consider. However, hiring is slightly down from previous years.
The article stated that Yariv considered how "staffing challenges could have impacts beyond costs as well" and noted that "group and conference travel could be delayed by a lack of capacity as hotels compete for employees in a tight labor market."
Yariv explained, "Staffing a conference, you need employees you just don’t have right now[.]" He reflected, "If the conference hotels are able to find sufficient staff to be able to put together events from a logistical perspective, then there's a good chance it’s starting in Q4, maybe Q3."