Challenges Facing the Hotel Industry

The biggest threat to hospitality isn’t AI or inflation, it’s the way we treat our teams. You do not have a talent problem. You have a leadership problem. Leadership isn’t a title, it’s how many people you’ve built up, not broken down. You built a system that bleeds out your best people and then blamed the workforce for not sticking around. You cut every investment in training, mentorship, and culture, then wondered why nobody wants to lead in this industry anymore. This is not a talent shortage. This is a consequence of ignoring the human side of hospitality for far too long. Hospitality used to be a career path. Now it is treated like a revolving door. Most brands are more focused on asset value and shareholder reports than the people delivering the guest experience. You can renovate every room, upgrade every spa, add every tech tool in the book, but if your culture sucks, your turnover will keep draining your bottom line. Let me be crystal clear. You do not attract talent by posting a job on LinkedIn. You attract talent by building a brand people actually want to be part of. And right now, too many hospitality companies are all brand and no soul. Here is how we fix it: 1. Stop outsourcing culture to HR. Culture starts at the top. GMs and executives need to be visible, vocal, and invested in people. You cannot lead from spreadsheets. 2. Make leadership development a business priority. If you are not promoting from within, you are already behind. Build internal training academies. Identify high performers early and put them on a fast track. Do it now. 3. Tie KPIs to people, not just profits. Make career growth, team engagement, and retention real metrics that leadership is measured on. If your GMs only care about RevPAR, they are not real leaders. 4. Create a workplace people talk about. The best recruiting tool is your current team. If they are not raving about your brand, your reputation is working against you. Fix the culture from the inside and the word will spread. 5. Quit glamorizing the guest while ignoring the team. The guest experience is only as good as the employee experience. You cannot deliver five-star service with a two-star culture. This industry will not be saved by more job boards or fancier titles. It will be saved by leaders who are willing to do the work, show up, and invest in people like their brand depends on it, because it does. The talent is out there. THEY JUST DON’T WANT TO WORK FOR YOU! And until you change that, you will keep bleeding potential to every other industry that treats people like they matter. --- I am Scott Eddy, keynote speaker, social media strategist, and the number 15 hospitality influencer in the world. If the way I look at the world of hospitality works for you, and you want to have a conversation about working together, let’s chat: scott@mrscotteddy.com.

What if the real crisis in the hospitality industry isn’t the labor shortage, but a failure in leadership to adapt to broader industry shifts? It’s a controversial take, but after a recent conversation with a customer in the sector, we believe it's worth exploring. While rising operational costs, such as wages and energy, continue to squeeze margins, the deeper issue lies in businesses struggling to meet customer expectations. With 63% of customers demanding personalized experiences but only 17% of businesses delivering, it's clear the gap isn't in staffing, but in technology adoption. Our customer admitted to treating technology as an expense, not a strategic investment. But research from PwC shows that businesses investing in digital transformation can reduce operating costs—something many are missing out on. Employee retention is also a key concern. Gallup's research shows that 50% of workers leave due to a lack of development opportunities, not pay. Our customer had focused on raising wages but neglected to create growth opportunities, resulting in high turnover. So, what can your business (and I can help) do next? 1️⃣ Reframe Technology: Treat tech as a strategic tool to enhance customer experiences, reduce costs, and boost profitability. 2️⃣ Prioritize Personalization: Leverage technology to meet customer demands for personalized experiences. 3️⃣ Invest in Employee Development: Create opportunities for growth within your team to improve retention and reduce turnover. The real challenge for hospitality businesses isn’t the labor shortage—it's leadership's failure to adapt and fully leverage the tools at their disposal.

🏨 2025 Hospitality Trends: What 39,888 Operating Hotels Tell Us—And Why 7,936 Projects Got Cancelled As of 2025, the hotel industry shows a mixed but insightful picture: 39,888 hotels are currently operating—a strong foundation and a sign of continued demand for hospitality services. 1,102 hotels are under construction, pointing to cautious but ongoing development. 3,112 hotels are in the planning phase, suggesting investor interest is still alive, though tempered. Yet, 7,936 projects have been postponed or cancelled—a figure that can’t be ignored. 📉 So why are deals getting cancelled or delayed? Several key factors are impacting these numbers: Higher interest rates: Financing new developments has become more expensive. Labor shortages: Operators are hesitant to break ground without a stable workforce. Market saturation in certain regions: Investors are getting more selective, looking for projects with proven ROI. Permitting and zoning delays: Especially in urban or highly regulated markets. Shifting traveler preferences: Developers are reassessing to align with new consumer expectations (e.g., wellness-focused stays, sustainability, remote work amenities). 📊 What does this mean for 2025? Expect a more strategic, experience-driven development cycle. We’ll see fewer but more thoughtful hotel openings, and a renewed emphasis on ROI, guest experience, and flexibility. Investors are no longer just betting on location—they’re betting on vision and execution. 💡 Bottom line: Success in this market isn’t just about finding a deal. It’s about executing the right deal. If you’re navigating the hospitality space—whether you're developing, acquiring, or repositioning—working with a seasoned, strategic advisor makes all the difference. ✅ My team and I bring years of real estate and investment experience, tailored market knowledge, and a track record of helping clients close with clarity and confidence. 📩 Let’s talk if you're planning your next move. Whether it's acquisition, disposition, or development—we’re the team to call. #RealEstate #HotelDevelopment #CommercialRealEstate #2025Trends #HospitalityIndustry #RealEstateBroker #matthewsREIS #matthews