The first of its kind, The Hospitality Show is a bold new event for the entire hospitality ecosystem with one shared goal: operating hotels efficiently and profitably. Brought to you by The American Hotel & Lodging Association and Hotel Management, the event will bring together top industry leaders, senior executives of hotel brands, owners, operators, management companies and procurement specialists—and their teams—to discover, network and drive profitability.
Business accelerates when the right people are in the room, and this new weekly series of advisory board interviews goes 1:1 with the industry’s best and brightest as they build the inaugural event to be held June 27-29, 2023 at The Venetian Resort Las Vegas.
In this installment, we catch up with Chad F. Sorensen, managing director and COO at CHMWarnick.
What issues are currently causing headaches for the industry?
Sorensen: The pandemic, followed by ongoing inflation concerns and turbulent capital markets has created no shortage of headaches for the hospitality industry and owners of hospitality real estate. The impacts of these stress points have required owners to continually adapt and rethink their investment strategies unlike any other time in the past.
What will it take for those issues to smooth out and when do you anticipate that will happen?
Sorensen: The path to recovery is leading towards a new norm for the industry and owners. The cost of operating hotels has never been higher and that means continuing to conduct business in a pre-pandemic model is ultimately not going to support the investment thesis for many owners. Righting the operating and capital “ships” has a ways to go, and may need to be measured in years, and not months, given the current and near-term environment.
What new trends do you see affecting the hospitality industry the most in 2023?
Sorensen: The continued need to get creative, through new approaches, with providing services in hotels through balancing the brand expectations, guest expectations and the cost to deliver on those expectations.
What do you see as the biggest opportunities for the industry as we make our way through 2023?
Sorensen: Educating guests on a new way of delivering a great hospitality experience. From an owners perspective, taking the time to analyze their current situation and having the fortitude to make strategic changes to get their investments back on track.
What do you think the industry’s biggest win this year will be?
Sorensen: The Hospitality Show being a raging success! Also, continuing to grow ADR and “spend” per, both group and transient guest to support escalating operating and ownership costs.
What are you most looking forward to at The Hospitality Show?
Sorensen: A fresh approach to bringing industry teams together to solve for many problems that did not exist five or 10 years ago.