Categories: Market, News & Events, Stump & Company | Published: Nov 17th 2021
Our team traveled to New York for the annual BDNY hospitality show at the Javits Center and it was fantastic! Attendance far exceeded anyone’s expectations and the energy was strong. The exhibitors and attendees alike were optimistic about a rebound in hospitality business for 2022 and beyond.
New York was bustling too. The planes were packed, the restaurants full, and construction was everywhere. Hudson Yards has a new multi-building complex across from the Javits center which makes the entire area more fun and energetic and offers wonderful restaurants and hotels for the BDNY guests.
The Javits Center seemed unprepared for the crowds and registration was a nightmare for the thousands of people who were forced through three gauntlets of covid checks, badge retrieval, and scanning at hall entry. This is too good of a market not to execute well. Our hope is next year things will be more streamlined. On a positive note, the American Express lounge was a big hit, and the abundance of tables and chairs in the back of the hall made for a wonderful place to relax and have meetings.
Key topics of conversation as we spoke with Hospitality Industry CEOs include:
Supply chain struggles continue as lead times are still stretched, with no end in sight for a return to ‘normal’.
Price increases continue as raw material and freight costs rise.
Reshoring to North America is being explored. With Asian supply chains painfully stretched many companies are looking for alternative production locations closer to home (particularly for upholstery) in the US, Canada, and Mexico. We heard a lot about Mexico and our recent trip to Tijuana highlights some of the benefits we see in Mexico manufacturing opportunities. See Tim Stump's article in Home News Now.
Business is rebounding with model room rates up and backlogs growing. New hotels and full hotel renovations are underway again. Visibility has always been a hallmark of the hospitality industry, and all indications are pointing to a vibrant 2022 and even better 2023.
Domestic labor continues to be a struggle, and constraint, as demand ramps up. Wage increases are helping, but not enough.
The network of procurement players for hotels are looking for one stop shopping and companies that offer a full suite of products from upholstery to casegoods to metal accent pieces from the guest room to the public areas to the restaurants and bars. We anticipate this will drive a wave of acquisition activity.
Mergers & Acquisitions were also a hot topic as strong players are gearing up to grow again and are seeking capacity, products, customers, and new channels of distribution.
Quote of the Market
“What does winning look like?” asked one CEO to another during a merger conversation. We love that question, and it is applicable to all of us as we close 2021 and look optimistically to the New Year.
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