financeSkift··1 min·For: Owner, Investor, GM, Revenue
Why the Hotel Business Is Entering an Owner-First Era
The hospitality industry is shifting toward an 'owner-first' era as rising costs and high CMBS delinquency rates force a reevaluation of traditional asset-light models. Minor Hotels highlights an 'asset-right' approach, emphasizing that brands with skin in the game are better positioned to drive long-term profitability for owners.
Key Takeaways
- 1Evaluate the 'asset-right' model as an alternative to pure asset-light strategies to ensure better alignment between brands and owners.
- 2Monitor rising CMBS delinquency rates in limited-service sectors to prepare for potential financial strain and debt restructuring.
- 3Prioritize flexible brand arrangements and conversion opportunities that focus on long-term asset performance over aggressive pipeline growth.
Source: Skift
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