Skift Take
Many hotels won't come back from coronavirus shutdowns, but the downturn in travel won't last forever. It is a shrewd business strategy to plan for future growth, if you can stomach the short-term occupancy meltdown.
Coronavirus shutdowns can be a chance to recalibrate and accelerate new hospitality business strategies.
Travel restrictions and cratered demand shuttered hotels across the U.S. beginning in mid-March. But if operators can move beyond suspended operations and tanked revenue, the shutdowns can also present opportunities.
The chief executives of timeshare company Wyndham Destinations and extended stay brand AKA Hotel Residences, in separate interviews with Skift, both said they used the downturn in travel to plan for future growth coming out of what is expected to be the worst year on record for the global travel industry.
“Amid all the craziness going on, I think it’s going to be three giant steps forward for the AKA brand,” said Larry Korman, president of AKA Hotel Residences. “Our time has come.”
AKA’s upscale properties, in markets like New York City and London, are designed for travelers looking for a week to month-long stay. Of the 12 hotels in the company’s portfolio, the three that temporarily closed were properties that focused more on nightly stays compared to longer reservations, Korma
