Thom Geshay, president of Davidson Hotels & Resorts, shares his thoughts on how the hotel industry is weathering the Covid-19 pandemic and when he sees a reasonable recovery happening.
His hospitality management company operates 61 hotels under a variety of brands including Marriott, Hilton, and Hyatt, and more than 120 restaurants, lounges, and bars throughout the country. This geographic exposure means Geshay has been able to watch travel trends shift throughout the year. Differing regulations around the country led to shifting demand and varying degrees of interest from travelers to visit some regions over others.
Despite signs of hope, he believes it will take quite some time for things to get back to normal with recovery happening sooner in some places over others.
The industry, while off its lows from back in April, is still well below last year and has a long way to go. It also varies by the type of property. For instance, the lowest priced sector (economy-focused brands) has held up the best while luxury and upper upscale properties, where our hotels are positioned, is down in occupancy nearly 70 percent year to date.
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We started to see demand increase in some markets during late summer as municipalities eased restrictions and leisure and family travelers took vacations. However, we are now seeing a reversal as performance is easing as we head into fall where corporate travel, conventions and large sporting events historically provided the hotel demand.
Because of the absence of corporate and group business, weekends are faring slightly better than mid-week due to leisure travel. But, there is still a long way to go.
Do you believe that things will start to turn around soon?
Unfortunately, I don’t see a catalyst that will start a meaningful rebound in hospitality demand until there is a widely distributed, approved vaccine or therapeutic drug.
