By Michael Buono
COVID-19 has challenged us personally and professionally to reevaluate how we interact and transact. Collectively as an industry, we are examining hospitality concepts and redefining experiences in the immediate, short- and long-term. Good concepts will carry over and areas that were not thriving pre-pandemic are unlikely to reemerge.
This is a time of refinement and cleanse.
Balancing the bottom line
Balancing the bottom line is now a two-part equation. Existing projects must adjust through a comprehensive review; a deal initially showing x, is now x minus one. Initial underwriting requires a specified output and that output may no longer be true as capacity in public spaces is reduced by half or a third.
The properties that will have more of a challenge are those with pronounced dependence on secondary revenue streams generated through F&B, event spaces, retail, and the like. Properties that have erred on the conservative side from an underwriting or growth perspective, will be fine thanks to room rentals.
Speaking from a personal experience, we launched a restaurant in 2001, just three weeks before 9/11. We faced difficult times, but our business grew – and looking back today, it has grown exponentially. A lot of the competition that we had at the time no longer exists. There’s something to be said about reinventing and ultimately digging deep and looking for the opportunity that lies within a challenging time.
Adjust on paper or proceed as planned?
Properties that are in the blueprint planning phase should look to input and lessons learned during the pandemic to inform their decisions. There are fundamentals, like the flow of the space, accessibility and air circulation that should be viewed through the perspective of our new lens.
The hospitality industry is evolving, and in some cases catching up, to manage human interaction. Step back from schematics and reimagine the front desk check-in process. Stagger check-in and check-out times and within properties with limited elevators, create memorable moments with exquisitely crafted staircases that invite the guests to walk up to lower floors.
Reimaging and reinventing
For operating hotels, this is an opportunity to reinvent certain spaces. For example, consider will a banquet space capped at a 50 percent capacity be viable when all expenses are factored? Recognizing that every property is different by virtue, there is an incredible possibility of turning spaces into new guest rooms or redefining their use to best align with our reality.
The overarching question, however, remains – does it make sense to reconfigure your space in a way that is so permanent or are we better served with temporary adjustments to weather the storm? I believe we should turn to the latter as in the next six to twelve months, we will have a better understanding of the virus and how to control it through vaccines and policies.
In this temporary period, properties are making the best of their space. For example, 11 Madison Park, in partnership with American Express, has utilized their kitchens to prepare meals for those less fortunate. The possibilities are endless for dedicating interim space for a social cause and long-term positive impact.
The brand ethos does not need to be compromised
The public space is important, but it does not define the property. Success is in seamlessly shifting the focus from the public space to other areas that are acceptable within the current parameters. For example, bridge the gap of dining in the restaurant by creating an elevated in-room dining experience that surpasses traditional room service, embrace new technologies to bring the exercise equipment to the guest. Creative solutions and quality substitutions exist.
