As part of the Americas
Lodging Investment Summit’s Patron sponsorship program, ALIS organizers asked
Aimbridge’s Michael J. Deitemeyer eight timely questions as we prepare for the
22nd annual event January 23-25, 2023, at the JW
Marriott/Ritz-Carlton Los Angeles L.A. LIVE. Following are his responses.
ALIS:
How has
inflation and the threat of a recession affected property operations in the
U.S. hotel industry?
DEITEMEYER: Aimbridge Hospitality’s
excellence in operations unlocks value for our owners and generates outsized
returns, and our experience prepares us to meet any moment through the ups and
downs of economic cycles. We’re already operating leaner and more efficiently
in part to the pandemic but also due to our economies of scale and investments
in technology such as automation. We focus on preparation, growing the top
line, and hands-on management, which are all critical factors for protecting
margins for our owners in any cycle.
ALIS: What has been the
biggest lesson learned during the last 2.5 years when it comes to hotel
management?
DEITEMEYER: The opportunity is
really about our people. Our people make all the difference and I’m proud of the
Aimbridge team and all that we have accomplished together. This year we had in-person
conferences with our General Managers and sales leaders. Providing our
associates robust training, investing in their growth, and just as importantly,
investing in the active support and tools they use to be the best is part of
our commitment to providing a place they can grow, succeed and belong. With
many first-time GMs and Directors of Sales, Aimbridge differentiates with our
robust support system. As an example, we have our in-person GM Connect at
headquarters, bringing in new Aimbridge GMs for training to understand the
resources available and build a peer network. It’s been a great success, and
we’re adding a program for new Directors of Sales as well.
ALIS: How have guest
expectations evolved over the past year, and how do you expect them to change
going forward?
DEITEMEYER: Customers’ preferences
are evolving as they are out traveling again, and we are focused on how we can
create memorable experiences and meet them where they are now. As group and
corporate travelers return, their expectations are full availability of
amenities at the properties, including food and beverage. For us, it is about
recognizing and listening to what guests and customers are asking for and
responding to that.
ALIS: Aimbridge’s recent
realignment created six operational divisions, including four that cover vertical
expertise—full service, evolution lifestyle, enhanced select service and select
service. Based on your portfolio and what you’re seeing throughout the
industry, what segments are performing best? Why?
DEITEMEYER: Luxury and Economy—the
two “bookends” of the hotel category spectrum—experienced strong performance in
2021 and are continuing to perform well this year. However, we’re seeing the
best performance year-over-year in our Full Service division, with an emphasis
on group and corporate travel.
ALIS: The other two divisions
are EMEA to expand beyond the UK and Europe, and LatAM to build from a strong
foundation in Mexico. Why is it important to have a global footprint and reach
into some areas where management contracts aren’t all that common?
DEITEMEYER: As the brands continue
on an asset-light course, third-party management is more important than ever,
and institutional investment communities are driving the global need for
third-party management outside of North America. Aimbridge has a true advantage
in global third-party operations. We launched the business in the UK with
small M&A deals that have fueled our growth in Europe. We now have a
similar situation in Mexico and expanding throughout Latin America. We
recognized the importance of having a unified global identity and integrated
the Aimbridge corporate identity with our EMEA and LatAm divisions to more
fully tell the story of the Aimbridge advantage.
ALIS: How has Aimbridge
traversed the labor crunch? Is there a way the industry can overcome that issue
any time soon?
DEITEMEYER: Aimbridge has been able
to have a competitive advantage because of our daily pay and shift-share
programs, which allows us to offer a flexible environment focused on financial
well-being for added appeal, especially with Gen Z and those who might be
interested in gig work. We made daily pay a key offering to our employees, and
over $10 million in wages has been accessed ahead of regular pay periods—and
interest for this continues to grow. We’re investing in our leadership
development, internships, apprenticeships, and training in other soft skills to
attract and retain people. As a people-first company, we make sure we talk
about the importance of our culture and investing in our people. Our commitment
to fostering this culture creates a strong team and a place where we do our
best work. As an industry, we need to tell the story of resiliency and opportunity.
ALIS: What’s the most under-estimated challenge the
hotel industry faces, and why?
DEITEMEYER: In reality, the workforce has been changing all
along; the pandemic just accelerated those issues, including a declining
population growth rate, an aging population, and a shrinking workforce. So, the
size and scope of the labor crunch are underestimated as we have this big
demographic shift happening and are just now starting to see it. As an industry,
we need to promote hospitality as a great place to have a job and a career. Within
Aimbridge, there are people who got their start in the positions like
housekeeping, food and beverage, and guest service roles, and we need to
continue to tell those stories to show the value of both lifelong and
life-stage career potential.
ALIS: What’s the most under-estimated opportunity for
the hotel industry, and why?
DEITEMEYER: Our greatest challenge is our greatest
opportunity—the people make all the difference. Hospitality is a great place to
be, no matter where you are in your life. Aimbridge focuses on talent,
training, and development at every stage of someone’s career journey. The sky
is the limit with Aimbridge and in the hospitality industry.