Ah, the Concrete Jungle, the Big Apple and home to arguably some of the best pizza in the U.S. (Chicago, we'll talk later).
Word on the street is that New York City's tourism is being revived after two pandemic-filled years of empty tourist attractions, according to the New York Times.
Data from STR, CoStar's hospitality analytics firm, shows three-quarters of New York City's available hotel rooms were filled during the week ending March 19.
A forecast from NYC & Company estimates there will be a 70% increase in tourists this year in New York City from 2021 to a total of 56.4 million visitors, including 8 million from abroad. While that total is still short of pre-pandemic levels, this is promising for recovery.
But I'm also concerned. The New York Times reports about 115 hotels out of New York City's total hotel supply haven't reopened after being battered by the pandemic. And employment in the leisure and hospitality sector is still down.
With all this demand that's expected to hit, how will hoteliers manage to stay above water in terms of staffing their properties and maintaining guest satisfaction?
I suppose that has been the million-dollar question all along. So I called up one of the best New York City born and bred experts in the hospitality industry I know, Daniel Lesser of LW Hospitality Advisors, for his sentiments.
And in case you're wondering, I did indeed ask Dan his favorite pizza spot in the city. Email me for the answer.
OK, back to talking about hotels.
Dan explained to me that labor is a big challenge across the country but it's further complicated in New York because of strong labor unions and property taxes that are "off the charts," among a handful of other reasons. In terms of temporary or permanent hotel closures, he said he doesn't feel that's enough to produce a massive issue of too many guests and not enough space.
"I think there is enough supply out there. And, candidly, compression can be created so that rates can be pushed up," he said.
He also knows that the overall hotel industry, including New York City's, is looking for ways to take advantage of technology to deal with these labor challenges.
While adopting technology might not be the quickest fix to alleviate the labor issue — the hotel industry is historically reactive instead of proactive when it comes to technology, Dan explained — I do believe that treating staff members that are currently working at open and operating hotels better can make a difference. This is something that brands, owners and management companies must not sweep under the rug.
At the recent Hunter Hotel Investment Conference, I covered a panel where hotel brand CEOs discussed what hotel-level staff and corporate teams need in order to succeed, and most importantly, be happy in their roles.
Wyndham Hotels & Resorts' President and CEO Geoff Ballotti said during the panel that the topic of how to attract talent to the hotel industry has long been top of mind. The reality, he said, is people don't always view working at hotels as the "easiest" or "best" place to work.
"As an industry, we've underpaid. We need to be compensating competitively," he said. "A signing bonus has, for our franchisees, been one of the most effective tools throughout this pandemic in terms of attracting our housekeepers, room attendants and our guest-service agents."
David Kong, the previous president and CEO of BWH Hotel Group, sang a similar tune in 2021 saying, "The truth is, it's really hard to work in the hotel business now."
Tom Buoy, interim CEO and executive vice president of Radisson Hotel Group, Americas, said during the panel at Hunter that employers must also create a flexible work environment, especially for those who are in the gig economy or working multiples jobs.
From what I gathered from this hourlong panel discussion at Hunter, these companies took the time to interact with all levels of employees to find out what it is that they're motivated by, whether it's signing bonuses, flexible hours or feeling value in the work they are doing.
Much like the overall industry, I imagine hoteliers in New York City have been and are going to continue to be overwhelmed this year. We've heard time and time again about employee burnout. When staff well-being is at the forefront, guests are better taken care of as a result.
Leaders, if you want to reduce staff turnover and increase employee morale, please create a space for your employees to voice their concerns and needs. Take the time to listen to them with your undivided attention and take actionable measures to alleviate those worries.
Hotel-level employees, please don't be afraid to ask for what you need. Open that line of communication if your supervisors don't. You deserve to have your voices heard as you take on the summer demand.
What are your thoughts? Email, find me on Twitter or connect with me on LinkedIn.
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