Finance, Op Planning & Forecasting

The annual NYU International Hospitality Industry Investment Conference, now in its 46th year, offers a deep dive into the current and future state of the hospitality industry. This year, I had the privilege of leading a CEO panel discussion on "Innovative hospitality concepts, new spaces for expansion."

Where did all of these robots come from? While hospitality may seem like the last place you might expect to find Artificial Intelligence, this technology has significantly impacted how hoteliers do business. While most generative AI today reacts to text prompts, it will soon rewrite the rules for hotel operations. Properties of all sizes, branded and independent alike, will benefit from automation taking over repetitive, mundane tasks — but our industry often struggles to explain how this will play out in practice.

In today’s business landscape, the role of third-party management companies has emerged as a cornerstone of operational success. These entities specialize in offering comprehensive solutions that streamline operations, enhance efficiency, and drive profitability across various industries. From hospitality to real estate and beyond, their impact is profound and multifaceted.

The "Chief AI Officer"—or CAIO—is one of the hottest new job titles in the corporate circuit, and both the hotel and airline industries are embracing this role to stay competitive in the digital era. LinkedIn reports that the number of companies with a “Head of AI” position has more than tripled in the last five years. When IBM and Dell cut the ribbon for their Chief AI Officers last year, the race was on, and it wasn’t long before Accenture, Arizona’s renowned Mayo Clinic, and WPP heard the call and announced their very own CAIOs.

A recent discussion on LinkedIn prompted this post. There is a noticeable and growing trend to charge customers paying by credit card an additional fee. Yesterday, the restaurant I had lunch at, had a 4% surcharge if you paid by credit card. Last week, a popular barbecue place I visit, had a printed menu with two price columns: one for cash and the other for credit card payments. The difference was 11.75% - guess which column was more expensive!

Maintaining strong, equitable vendor relationships is key to any successful hotel enterprise, especially during periods of economic uncertainty. When done effectively, these partnerships ensure that hotels can navigate supply disruptions, provide consistent, high-quality amenities, develop unique and competitive offerings for guests, and meet industry standards and regulations. For many hotels, cooperation with suppliers was essential for surviving the pandemic and continues to help set them apart from competitors.

In 2023, U.S. hotels saw their operating efficiency decline as operating expenses increased at a pace greater than revenue growth, resulting in a decline in profit margins. With forecasts of moderate revenue gains for the next few years, hotel owners and operators are very focused on controlling costs.

“AR” as we commonly refer to the sub department of the accounting function is a mainstay in any larger group-based hotel. In these juggernauts the importance of efficiently collecting your money is mission critical. Not only do we take the chance that the group will come and stay after we hold all those rooms, but we also roll the dice and give them credit.

Just as the hospitality industry evolves, so too must the format of its conventions, especially one as influential to the hospitality industry as HITEC. This year, the senior team at HFTP has expanded the tradeshow’s depth and impact with the inaugural HITEC Technology Investment Conference, taking place immediately after the main event on Thursday, June 27 and Friday, June 29. While it’s been in the making for a long time, we couldn’t have hoped for a better year to debut this addition.

There’s a prevalent misconception that SMEs must comply with the Corporate Social Responsibility Directive (CSRD); in other words, they must prepare long and “complicated” standardised ESG and/or sustainability reports. However, this is far from the truth (Table 1). So, what is the actual scope of the CSRD?