[su_dropcap style=”flat”]W[/su_dropcap]HAT IS SURE right now, though, is that 2015, as far as the economists are concerned, have done well for the United States, or Europe for that matter. The dollar is strong, and the Euro’s seems to be stable in many circles, is now openly spoken of as a fait accomplishment.
And 2016 has arrived, and along with a string of political figures wanting to President of the USA. This will definitely have an impact on the hotel industry, well my friend it seems that the hotel Icon Donald Trump is in the running for that job. It certainly adds spice to the format. Imagine the White House a Trump Resort? Some of his rhetoric has caused quite a stir among the populace.
Are we to believe this and, if so, what shall we do? Can we do anything? Do we do nothing and let “nature” and the “markets” run their course? It’s post time people, get your pencils out and see who will end being the Nominee.
Hmm. That’s a lot to ponder for the end of 2016 and the beginning of 2017 Heavy stuff!
I think I’ll leave all those thoughts to you, the reader.
We are slowly recovering from a recession (depression?) that essentially we brought on ourselves.
Is it possible we have learned nothing from it? We seem to be repeating the same failed policies of the past to correct the problem, with the same failed past results.
Take the hotel business, for example, we overbuilt the hotel market and paid the price for doing so; and still are, for that matter, with little end in sight.
For a while some people did make a lot of money, but in the end most had to declare bankruptcy, or sell at a distressed price.
The BIG PROBLEM, as I see it, is that many in our business ignored or misjudged the short-term as well as the long-term business cycle. I suspect, in most cases, due to ignorance, to make a quick profit, to be more competitive or just plain “damn the competition, more hotels ahead!” Well it seems that we are having a bang up hotel comeback, ADR is up and occupancy is doing well.
If we have another good economic run, are we fated to repeat the same mistakes?
Well time will tale Marriott bought Starwood’s holes, and just became one of the largest hotel companies, will wait and see what they do
Why? Because we, as business managers, developers, investors, and owners are always ready to ride the next bull market in hopes the bears will hibernate for a long, long time. After all, profits are to be made NOW, so it’s time to grab the bulls by the horns and keep them around as long as possible.
And if, for some reason, the bears come out of hibernation en mass, we can always blame “nature,” or government, or the weather, or this or that happening—never ourselves—and, who knows, it may well be our time to ask the government to bail us out!
Chances are, if we built and managed for the long haul, we would have our ups and downs, but not nearly as high as Everest or as deep as the Mariana’s Trench. In other words, if we really paid attention to what we do and did it right, we would be far ahead of the game, and very little to worry about. We live and act too much in the “I want (deserve) it NOW” generation, and not enough in the long-term realistic generation.
The economy is doing relatively well, that’s true, and the unemployment rate, the government figures as well as the real figures, are quite low, but those that really want to work, will always find it.
Consistent and steady growth over the long-haul will always beat out the instant profiteers. Also, those that manage to actually work for an organization that’s in business for the long-haul, have more dedicated and happier employees.
Any resolutions ahead?