ATLANTA—Any gathering of hotel executives these days is destined to focus on the economy and the industry’s current struggles, but last month’s Hunter Hotel Investment Conference at the Marriott Marquis here offered plenty of optimistic, long-term viewpoints amid today’s harsh reality.
For example, Glade Knight, chairman and CEO of Richmond, VA-based Apple REIT Cos., offered this perspective during the second day’s keynote session: “It will be a challenging year, but sometimes these are the best games and you can come out and win. When times are bad you never think they will get good and when you’re in good times you never think they are going to get bad.”
A couple of high-profile executives from large franchise companies also managed to exude some optimism during the event’s educational panels. During the President’s Panel, Steve Joyce, president and CEO of Choice Hotels International, talked about his role and the outlook of many of the company’s franchise partners in this economy. “As a franchisor you’re job is to be out in front of [franchisees]. When you meet them, they’re optimistic. They know it’s coming back,” he said.
Likewise, Nancy Johnson, executive vp and chief development officer for Carlson Hotels Worldwide, delivered her own message to the industry during the conference’s Leadership and Experience session. “You have to remain positive and vigilant. A great opportunity will be presented to you and you have to be prepared to take it,” she said.
The Hunter Conference was kicked off with a particularly relevant session called “2009 Economy and Beyond: Its Impact On The Lodging Industry,” which was presented by economist Rajeev Dhawan, who is director and associate professor of the Economic Forecasting Center at the J. Mack Robinson College of Business at Georgia State University. Dhawan promised little economic relief in the short term but a better long-term outlook. “When the bailouts stop and private equity comes back into the market, things will start rolling again,” he said, noting that the U.S. government should have opted to bail out Lehman Brothers instead of AIG. “The ship sailed after the bankruptcy of Lehman and we’re still paying for it.”
Dhawan did, however, note of the overall economy, “It looks like it’s coming back to normal, but keep your fingers crossed.”
In referring specifically to the hotel business, he noted, “I cannot talk to you about everything being rosy in the second half. I don’t see it. I would rather talk about next year,” he said.
Dhawan referred to the current state of the economy as “not just a downturn but a reset,” while also noting it does not compare to a “depression.”
In addition to the economy, another hot topic of the conference centered on the new presidential administration and its impact on the hospitality industry as well as pending legislation. President Obama has come under fire recently for effectively discouraging large corporate meetings.
The Leadership and Experience session offered some support for the new administration. For his part, James Anhut, senior vp and chief development officer at IHG, is hopeful. “I like to think they will be a friend of the industry and be a net employer,” he said.
Mark Woodworth, president of PKF Hospitality Research, meanwhile, thinks some of the criticism has been unjust. “I don’t know why people are surprised. Our president is doing exactly what he campaigned to do,” he said.
But any discussion about the administration begins and ends with the current legislation for the Employee Free Choice Act. Three of the four panelists said they believed that the Employee Free Choice Act will not pass through Congress.
“I hope it doesn’t pass. I have a notion that it has gotten a lot of attention, but it won’t get through. I would be surprised if we lost the vote,” said Dennis Quaintance, CEO of Quaintance-Weaver Hotels.
Johnson, meanwhile, touted the work of the American Hotel & Lodging Association in its fight against the Employee Free Choice Act. “We should be proud of the AH&LA. They are running campaigns that say, ‘This is your freedom,’ ” she said.
One of the positive themes that emerged from the conference is the plethora of qualified personnel now available throughout the industry as a result of the downturn. “Like never before that I’ve seen there’s an incredible amount of talent out there,” Joyce said. “There’s an opportunity [at Choice]to look for opportunities to upgrade the talent.”
Bob Hunter, CEO of Hunter Hotels, who hosted the event and was part of the President’s Panel, agreed, noting, “There’s marvelous talent available.”
Knight used another sports analogy when assessing the importance of key personnel within a company. “All players have to be starters. You cannot have any bench players,” he said.
Knight also provided more encouragement to attendees. “It’s a great industry,” he said. “It’s going to be great today and great tomorrow.”