Hospitality Design - July 2023 - 48

hd expo recap conference highlights
A rendering of the roof deck at the forthcoming Kimpton
San Antonio, owned and operated by White Lodging and
designed by HKS Architects and KTGY Simeone Deary
The What Owners Want panel: Gonzalo Bustamante, MGM
Resorts International; Michael Everett, NuovoRE; Helen
Jorgensen, Host Hotels & Resorts; Brenda Rauch, Park Hotels and
Resorts; and Peter Reardon, White Lodging Services Corporation
CAUTIOUS OPTIMISM
Two panels, What Owners Want and Investor Outlook on the State of the Industry, highlighted the challenges affecting
hospitality today. From money constraints to slowing supply growth and high interest rates, no topic was off limits. Below are
fi ve takeaways from these designers, developers, purchasers, and owners.
Prioritize ROI
It's important to have critical conversations with
the team early on about where to spend money
and how to make money. " As an owner, we
have to articulate what's important to us, " says
NuovoRE president Michael Everett . " We have
evaluated the market to know we're going to get
the best bang for our buck by spending an extra
million dollars on the ground fl oor and not overinvest
in the guestrooms. "
During its Marriott Transformational capital
Campaign from 2018-2022, Host Hotels & Resorts
made the decision to reinvent the entire hotel,
rather than renovating only certain spaces. " You
048
spend a lot of money up front, but if you spend it
wisely, you'll see that return on investment, " says
Helen Jorgensen, Host's vice president of design
and procurement.
With a revised strategy on F+B, White
Lodging Services Corporation has seen a
signifi cant increase in revenue. Ten years ago, the
company's food venues were doing $40 million.
This year, that number has jumped to $239
million. White Lodging is investing in quality
design, " leading to increased profi tability and a
greater guest experience, " says Peter Reardon,
vice president of purchasing and procurement for
White Lodging.
Recovery is on the horizon
Post-COVID recovery has happened faster than
expected. ADR and RevPAR in many markets
in the country exceeded 2019 levels by the end
of 2022. With supply growth slowing down,
hotel operators will see bett er performances,
and ultimately, a bett er potential sales and
refi nancing landscape, adds Jonathan Falik,
founder of JF Capital Advisors. " Historically,
coming out of a downturn, you build occupancy
and then rate comes. The recovery from COVID
was diff erent because it was rate driven, "
explains Tiff any Cooper, head of development for
Kimpton Hotels & Restaurants. Yet, the ability to
July 2023 hospitalitydesign.com
The Investor Outlook on the State of the Industry panel:
Kevin Davis, JLL; Jonathan Falik, JF Capital Advisors; and
Tiffany Cooper, Kimpton Hotels & Restaurants
Photos and renderings by PWP STUDIO and courtesy of KIMPTON

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Hospitality Design - July 2023

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