The hospitality industry remains below pre-pandemic levels. What are your expectations for ADR, occupancy and RevPAR in 2025?
While the hospitality industry remains below pre-pandemic levels, I anticipate national RevPAR growth of 2-5% in 2025. However, I’m confident that our portfolio will outperform this trend, driven by a combination of strategic revenue management, targeted segmentation, and proactive share shift tactics. By leveraging data-driven insights, optimizing pricing strategies, and focusing on high-value guest segments, we expect to see faster-than-average growth in ADR, occupancy, and RevPAR, positioning us for continued success in competitive markets.
What is your greatest challenge going into 2025 and what steps are you taking to overcome it?
Our greatest challenge heading into 2025 is navigating a choppy liquidity environment within the capital markets. To address this, we are adopting a highly selective approach, focusing exclusively on deals where we have strong conviction in our investment thesis. By prioritizing disciplined decision-making, leveraging deep market analysis, and maintaining alignment with our strategic goals, we are positioning ourselves to seize high-quality opportunities.
What steps are you taking to drive revenue and maximize asset ROI, and is it on the top line or bottom line?
By strategically deploying our First Analytics tools, we harness real-time data to identify and capitalize on niche revenue opportunities, ensuring growth on the top line. Simultaneously, we leverage the platform to enhance operational efficiency, particularly in labor management, which directly impacts margin performance. This comprehensive strategy allows us to optimize both revenue generation and cost control, delivering stronger overall returns.
In discussions with owners, what are their biggest concerns for 2025?
Owners are concerned about overcoming margin compression amidst the dual challenges of high-interest rates and rising cost inflation. To address these concerns, our focus is on implementing proactive cost management strategies, leveraging technology to drive operational efficiencies, and exploring creative revenue opportunities
Labor issues and fluctuating occupancy are two operating issues going into 2025. How are you strategizing to operate more efficiently?
By leveraging First Analytics, our team is implementing data-driven strategies to optimize labor flexibility and align it with real-time occupancy trends, the ebbs and flows. By proactively managing staffing levels, we ensure operational efficiency while maintaining excellent service standards, regardless of fluctuations in occupancy. This approach allows us to adapt swiftly to changing demands, improve cost control, and enhance the overall guest experience.
In 10 words or fewer, what is your overall hospitality industry outlook for 2025?
Strong conviction on operating fundamentals but challenged by the capital liquidity.
For more information, visit www.firsthospitality.com.