Each Friday, the HotelNewsNow.com editorial staff picks the most compelling (or downright gutsy) quote and reader comment from the week. Here are this week’s picks.
Reader comment of the week
STR Analytics director Stephen R. Hennis posited an interesting theory: Buying assets at a discount and selling at the peak of the market could be a flawed strategy. He reasoned that a short-term hold period seemed to generate better returns than trying to time the market peak.
Message-board commenter “rosscowie” took issue with this line of thinking.
“A great strategy for the investor, not so great for the hospitality industry as a whole. The destabilising (sic) effect of an ownership change on hotel staff morale, sense of job security and engagement can be devastating. The service industry is about the employee-customer interaction and the respective ownership-quotient generated for both parties. That is where hotel operations can differentiate themselves in a crowded market and add value. The short-term hold & flip mentality will never allow OQ to reach its full potential; potential that takes time to develop. The hospitality industry needs a level of stability that is clearly at odds with the short-term investment strategies of owners. When will hotels be viewed as anything other than capital gains?”
Quote of the week
This week, HotelNewsNow.com’s Patrick Mayock organized a seven-part special report examining data security in the hotel industry. There have been several high-profile hacks within the industry recently, and data security experts say hackers view the hotel sector as being particularly vulnerable.
One reason for that vulnerability has to do with the general economic climate, said Jeremy Rock, owner of RockIT Group and a member of the Hospitality Financial and Technology Professionals advisory council.
“You’ve got less people trying to do more,” he said of reduced staffing levels. “… I don’t think the general maintenance is being done to the systems and the networks.”
