2 CALIFORNIA LODGING NEWS 414 29th Street Sacramento, CA 95816 916-444-5780 www.calodging.com EXECUTIVE COMMITTEE CHAIR Tom Patton, CHA Ramada by Wyndham Santa Barbara VICE CHAIR Hee-Won Lim Pacific Palms Hotel IMMEDIATE PAST CHAIR Bijal Patel, CHA Coast Redwood Hospitality SECRETARY/TREASURER Dhruv Patel Ridgemont Hospitality GOVERNMENT & LEGAL RELATIONS CHAIR Javier Cano JW Marriott at L.A. LIVE AUDIT & INVESTMENT COMMITTEE CHAIR Laurenne Douglas Pacific Plaza Hotels, Inc. 2022 BOARD OF DIRECTORS Kristi Allen Ensemble Real Estate Solutions & Investments Bhupen Amin Holiday Inn Express Hotel & Suites Justin Boutwell Pebblebrook Hotel Trust Javier Cano JW Marriott at L.A. LIVE Vipul Dayal Days Inn San Francisco Airport West Laurenne Douglas Pacific Plaza Hotels, Inc. Ross Gimpel Encore Terri Haack Lowe Enterprises Investors Jon Handlery, CHA Handlery Union Square Hotel Niles Harris InterContinental Los Angeles Downtown Nic Hockman Disney’s Grand Californian Matt Humphreys Hyatt Regency San Francisco Daniel Kuperschmid Manchester Grand Hyatt San Diego Mark LeBlanc Aimbridge Hospitality Frank Legrand Cornell Hotel De France Hee-Won Lim Pacific Palms Resort RJ Mayer The Mayer Corporation Michelle Millar University of San Francisco Cormac O'Modhrain Sunstone Hotel Investors, Inc. Michael Pace InterContinental Mark Hopkins Hotel Bijal Patel, CHA Coast Redwood Hospitality Bimal Patel, CHA Hotel Zico Perry Patel Radiate Hospitality Pragna Patel-Mueller Samata Management Joe Piantedosi Park Hotels & Resorts Chip Rogers American Hotel & Lodging Association John Spear Hotel Drisco Jeffrey Thurrell Fisher Phillips Wes Tyler, CHA Chancellor Hotel on Union Square Mike Tweeten Ace Parking Management Bobby Walia Marriott International Corporation ADVERTISING & DESIGN LLM Publications 503.445.2220 | 800.647.1511 www.llmpubs.com Design & Layout Sales Representative Stephanie Pendell Grandt Mansfield grandt@llmpubs.com Copyright © 2022. All Rights Reserved OUR INDUSTRY HAS ENDURED SOME of its most difficult times over the past two-plus years since the onset of the pandemic. First, we battled through hotel closures, cancelled business conventions, and the evaporation of tourist travel. Then as we began to recover, we faced staffing shortages, supply chain issues, and new expectations by both staff and guests. As we go into 2023, I am hopeful that the industry will continue the gains that most properties experienced this year and move us closer to full recovery and profitability. Undoubtably, there will be challenges in the coming year but barring a large economic downturn we should be able to accelerate the positive trends of 2022. Through that optimistic lens, here’s what I foresee in the coming year: fTourism will continue its steady return to pre-pandemic levels. This year has been a very good one for many markets in California. The growth of tourism that had been all but wiped out by the pandemic was very strong in recent months and it is fully expected to continue into 2023, albeit at a lower rate of increase. We’ve seen a lot of evidence, both in the media and on the ground, that people are getting more comfortable traveling all the time, both within the U.S. and internationally, as evidenced by busy airports and flights that are consistently at or near capacity. fBusiness travel and conferences will continue to grow. Compared to leisure travel, business travel has been a lagging segment. But as we begin to see more workers return to the office, at least part time, you also can expect business travel as well as conferences to pick back up. Many groups have already resumed their conferences with strong attendance numbers; Dreamforce brought 40,000 attendees to San Francisco in September, its largest attendance ever. Already, a number of conference organizers have indicated they will start live events again in 2023, including the annual E3 electronic games conference that has been held in LA since 1995 and draws nearly 70,000 attendees. fTravel should weather the economic downturn. There’s no doubt that people are concerned about the global economic climate, from inflation to the decline in the markets, with a possible recession in view. In general, though, most people still view travel as an important investment and will choose to allocate some of their income to it. Especially after several years where the pandemic restricted travel, people want to have the experiences and restore lost connections with family and friends. For many people that investment is far more important than material possessions. So, while they may cut back in other areas, unless there is a major global recession, I believe that travel should see positive growth. fThe hiring climate will remain challenging. Hospitality employment was hit the hardest by the pandemic, and it is taking the longest to rebound, despite record hiring numbers overall. We are seeing gradual improvements in hiring but most properties are still understaffed, which affects service levels. National and local hospitality campaigns have been launched, as well as job fairs, with the goal MESSAGE FROM THE CHAIR Looking Ahead to Continued Growth in 2023 continues on next page
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