Being a successful owner and operator of hotels is simple, said Tyler Morse, chairman and CEO of MCR Development.
Founded 15 years ago, MCR is the fourth-largest hotel owner-operator in the U.S. — with a $4 billion portfolio of about 150 hotels and 22,000 guest rooms in 37 states and 100 cities — and employs 5,000 people.
His advice to Asian American Hotel Owners Association members at the organization’s annual trade show and conference: “Increase your rates; do it with confidence. … Stop wasting money. … Focus on profits. … ‘Fancy’ hotels are not better hotels. … Buy smart technology.”
Rising inflation in the U.S. is not a bad thing for the hotel industry, he said.
“We’re an inflation-protected business. We raise rates every day. And that’s why this is a great business. Generally speaking, we run 25% to 40% [profit] margins. We can raise rates and pay commensurate wages and still be better off. … Inflation is our friend,” Morse said, adding that average daily rate across New York City is $275.
Read the full article at HotelNewsNow (part of CoStar)