INDIANAPOLIS — Transparency, alignment on key performance indicators and a general culture of clear communication are what hotel owners want from their on-property teams, including leaders in revenue, sales and marketing.
Experts from Apple Hospitality REIT speaking at the 2025 HSMAI Commercial Strategy Conference said it's best when their on-property leaders are realistic and data-driven.
"It's crucial that you provide the right, detailed data and a well-thought-out plan to communicate effectively," said Kelly Klocke, vice president of commercial strategy for Apple Hospitality REIT. "Every interaction that you have with ownership is an opportunity for your team to either gain confidence or lose confidence."
Part of that task is understanding what type of ownership group you're working with and what their goals for investing in hotels might be. Apple Hospitality REIT Vice President of Commercial Strategy Steve Mulder pointed out companies like his are typically longer-term owners, whereas private equity owners might have a more short-term view.
"So do they have long-term goals for the asset or more short-term goals?" he asked. "Are they looking at acquiring the asset, taking it through a renovation and essentially flipping it? Understanding those goals will allow you to position your message accordingly."
He said it also shifts what key performance indicators different ownership groups will be most interested in hearing about. Objective metrics such as revenue per available room index, gross operating profit and net operating income are always important, but there are also "subjective metrics" that owners are keenly focused on.
This can include having an articulated strategy, accountability and transparency about what problems the property might be having.
"When we have a hotel that's performing substantially above budget or below budget, oftentimes owners will lean into these to assess the hotel, assess the management company and assess its leadership," Mulder said.
He said it's vital to understand that mistakes happen at every hotel every day, but trying to conceal them from ownership does nothing but erode trust.
To that end, Klocke noted it's better for owners to know sooner rather than later if a hotel isn't hitting its budget projections, and to come to that conversation armed with information on why there's a shortfall and what you've done to overcome that problem.
"As you giving us bad news, look at every discipline to tell us how you're going to mitigate some of this loss," she said.
Revenue managers, for example, need to make sure all their systems and business intelligence tools agree that things are scaling back in a meaningful way going forward and must show they've looked into potential shifts in pricing strategy. They should go into ownership meetings anticipating the types of questions they're likely to hear and come prepared with answers.
"Have you reviewed all of the available offers on the shelf?" Klocke asked. "Are your discounts and channels activated and attractive?"
Similarly, sales people should come prepared to show they're actively looking for new business.
"Have you reviewed your lost and turned down pipeline over the summer to see if there's maybe a piece of business that you want to reevaluate now that the summer is a bit softer?" she asked. "Any promotions or e-blasts that you want to consider?"
She said refining your distribution strategy is also key to demonstrate you're being thorough and thoughtful.
"Partner with your OTAs, make sure you maximize visibility and conversion. Tell us that you've maximized every portion of the commercial strategy," she said.