The past year has been a challenging one for the entire hospitality industry, leading to lost revenue, an increased demand for customer safety practices, contactless service expectations, and more.

Comparing statistics from the start of the pandemic travel bans in March 2020, to the most current statistics from March 2021, the hotel industry in the US has seen a decrease of 14.5% in average daily rate, and a decrease of 15.8% in revenue per available room. How does an industry built to thrive on guest travel weather the storm in the face of global travel interruption? It is surely not an easy task, and has led to financial hits and service demand struggles throughout the hospitality industry.

The good news is that there will always be a need for hotels, and it is normal for customer demand to ebb and flow in times of economic or social unrest. It seemed the pandemic was here to stay, at least for the foreseeable future, and we had to decide how to react in order to minimize disruption to our business and the businesses that we serve.

Leading The Charge With An Eye On The Future

So, we made a conscious choice. We decided to not only tolerate the pandemic, we decided to embrace this opportunity by looking to the future of the hospitality industry. What could we do as a company to help distressed hotels during this unprecedented time of economic upheaval? It was through our pandemic insights that we decided to expand our services to include a dedicated hotel development arm within our company, specifically devoted to the redevelopment of select and full-service hotels in primary and secondary markets.

The26Co Leading Charge

We use the knowledge gained from years of experience in the hospitality industry to identify acquisition opportunities that have above-average growth opportunity in times of market recovery. From boutique hotels, to luxurious and mid-level assets, we apply our comprehensive industry skills to reposition distressed assets through development and capital expenditure consulting. Our strategy centers around areas that we believe will see the strongest rebound, and we will work to move our newly repositioned assets and acquisitions back into the competitive hospitality market.

The26Co Luxury Economy

Luxury or Economy – The Guest Experience Must Be Unforgettable

Whether it is a staycation, weekend getaway, or full-blown luxury vacation with no expenses spared, consumers are getting ready to travel again. Many travelers may book bigger and better trips, spending money more lavishly than in the past after being out of the travel game for over a year. The hotel experience must be optimized to provide the highest quality in upgrades, extra amenities, and fancy meals, to meet the demands of upscale travelers who have been sidelined for over a year.

The26Co Guest Experience

However, not everyone is ready to spend top dollar for a vacation. For every worker that was able to come out of the pandemic financially stable, there is another who faced a world of struggle. Pay cuts, furloughs, lost bonuses, and reduced financial incentives unfortunately left many struggling to make ends meet. Economy hotels must be ready to provide families that are looking for an affordable mini-vacation with the clean, friendly, guest experience that they seek after the effects of a rough year. Your hotel must be ready to accommodate the specific needs of your target clientele, whether you cater to an upscale crowd, or seek to draw an influx of family road trippers on a budget. Our team is here to partner with you so that your distressed asset not only survives, but thrives during the upcoming travel rebound.