Hotel Operators Face Thorny Choices for 2023 Budgeting
Skift Take
A top hotel asset manager sees too many hoteliers trying to restaff to 2019 levels and too many failing to upsell guests effectively. Heed her words.
Early Check-In
Editor’s Note: Skift Senior Hospitality Editor Sean O’Neill brings readers exclusive reporting and insights into hotel deals and development, and how those trends are making an impact across the travel industry.Hoteliers are now in the middle of 2023 budgeting. It's a tricky task given the uncertain forecasts.
A pre-pandemic surge in demand seems to have tremendous momentum. But people in many markets are talking about recessions. So... how to plan?For insight, I checked in with Andrea Grigg, who leads the global asset management practice at JLL's Hotels & Hospitality Group, which manages about 90 hotel assets worth more than $6.8 billion.Here are some key 2023 insights from Grigg.
It's sensible for hoteliers to be cautiously optimistic.A key task is to take a savvier, more integrated approach to ancillary sales, such as at a hotel's restaurant or spa.Too many hotels want to return to 2019 levels of staffing. She doesn't think that's desirable.Too many hotels don't set aside money for inevitable renovation work.Overall, optimism about 2023 seems sensible.
"Overall, we've had very positive conversations about next year with hotel operators all over the world," Grigg said. "In the past few weeks, we've had budget reviews in New Yo