EDITOR’S NOTE
EDITOR’S NOTE
by Michael J. Pallerino
Bouncing back...with some patience
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Recovery Expected to Come Much Faster for Resort and Value Hotels
he headline doesn’t scream everything we want to hear, but the message is loud and clear. While the US hotel sector won’t fully recover from the pandemic until somewhere around 2025, some segments are expected to return faster than others, according to a recent report by real estate services firm CBRE. So, while I’m really not into clichés, the magnitude of the aforementioned news depends on whether you’re a “glass half empty” or “glass half full” kind of person. Make no mistake about it, the hotel sector (along with the rest of us) has experienced a sharp and sudden downturn last year amid the pandemic. But that doesn’t mean you shouldn’t be optimistic about a rebound. Do you see what I did there—I used the “glass half empty” and “glass half full”
in one unifying sentence? According to the CBRE report, while that “full recovery” we so desperately crave might not come until 2025, segments like resorts located in drive-to destinations in the Sunbelt could recover faster. Perhaps no segment took a bigger hit more than luxury and upscale chain hotels during the pandemic, with occupancy rates down 65% on an annual basis and nearly 72% in the last quarter of 2020. The segment that seemed to keep its head above the pandemic swell was value-priced hotels, driven mostly by the extended stay category, which continued during the pandemic as a haven of sorts for medical and emergency personnel looking to shield their families from becoming infected by the virus.
Patience. This will be the factor that must drive each of us forward. As we slowly start to return to a sense of normalcy (the emphasis on “slowly” no matter what you may believe), each of us will have to put one foot in front of the other (okay, I did it again with a cliché) before we are able to run. In his book, “Ten Lessons for a Post-Pandemic World,” CNN host and best-selling author Fareed Zakaria takes an in depth look into the nature of our post-pandemic world, focusing in on the political, social, technological and economic impacts that may take years to unfold. Part of Zakaria’s insights offer analysis on whether or not COVID-19 proves to be a catalyst for all of us moving forward, i.e., will it be the kind of event that changes the course of human history? In pandemic pasts, society advanced in myriad ways (it is worth googling). In which ways we grow and transform remain to be seen, other than how some of the world’s leading minds came together on producing a life-saving vaccine. As Zakaria writes, “What we can do is be far more conscious of the risks we face, prepare for the dangers, and equip our societies to be resilient.” Continuing our quest for education, awareness and a willingness to think differently will go a long way toward realizing all three. As we push ahead, it will be impressive to see how our industry continues to help lead the return to a version of what we had before the bottom dropped out. Along the way, we will continue to share your stories— the ones that show the difference each of you are making.
Michael J. Pallerino is the editor of Commercial Construction & Renovation. You can reach him at 678.513.2397 or via email at mikep@ccr-mag.com.
We want to hear from you At Commercial Construction & Renovation, we’re always looking to showcase the best of what our industry is doing. If you have a project profile or a fresh perspective on how to keep our industry positively moving forward, shoot me an email at mikep@ccr-mag.com. We’d love to take a look.
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COMMERCIAL CONSTRUCTION & RENOVATION — ISSUE 4, 2021
