Magnuson: Cut Costs to Survive Storm

INTERNATIONAL REPORT—In a video presentation, Magnuson Hotels CEO Thomas Magnuson advised hotel owners to weather the current economic downturn by quickly cutting costs.

Magnuson stated that while hotels need business from every market segment, it is critical to understand how much it costs to meet guest expectations. Speaking from his personal experience, hotel owners were advised to start saving money with simple strategies such as limiting areas of the hotel, shutting curtains and utilities in unused rooms, and re-examining vendor costs.

Magnuson said that while hotel markets have been affected with significant travel downturns, many areas of the U.S. have been less affected: secondary, tertiary, rural, and those who receive a large amount of highway and drive-up traffic.

“We are seeing significant volumes of travelers who are everyday people making our world go around,” he said. “Blue collar, construction, government services and medical are some of the markets we are focused on driving business to hotels. Travelers are also reacting positively to exterior-corridor hotels, due to health and safety concerns during the pandemic.”