Source: Hotel News Now
By Sean McCracken
April 9, 2019
WASHINGTON—The combination of new supply and low unemployment is putting a pinch on hotels, as hoteliers are left to compete for an ever-shrinking pool of available employees.
Labor costs ranked as the top concern in the Hospitality Asset Managers Association’s Spring 2019 Industry Outlook Survey, with 92.2% of those surveyed saying they expect labor costs to “negatively affect (their) portfolios’ results over the next three years.” Supply growth was the only other potential concern identified by a majority of respondents (52.2%), and it was marginally ahead of the health of the U.S. economy (47.8%).
Speaking with Hotel News Now during the association’s 2019 spring meeting, members of HAMA said labor issues will be especially acute in markets seeing heavy supply growth.