The once thriving greater Miami hotel industry is struggling to make a comeback, but not for lack of visitors – at least, not anymore.
Business is picking up faster than most hotels can handle, a far cry from when room demand dropped by nearly half in 2020, according to the Greater Miami Convention & Visitors Bureau (GMCVB). Occupancy plummeted, but is back to more than 79% and climbing, and skyrocketing room rates aren't scaring visitors away.
A lack of international tourists during the pandemic was quickly replaced by domestic travelers desperate for an exciting place to visit, and by locals looking for a “staycation.” And with the winter season now in full swing, the traditional tourist uptick fed by visiting snowbirds is anticipated with excitement – and a healthy dose of nerves.
The industry needs the revenue, but a different kind of supply chain catastrophe lingers – a staffing shortage. The bulk of Miami's hotel employees were laid off due to pandemic downsizing, either temporarily or permanently, and many haven't returned.
Wendy Kallergis, president and CEO of the Greater Miami and the Beaches Hotel Association (GMBHA), told the Biscayne Times that after hotels reopened, many former staff members "chose not to work, because they wanted to be with their kids," especially since children were home on remote-learning platforms. But schools have reopened, and staff still haven't flocked back to work.
In the greater Miami area, there are about 49,200 more available jobs in the tourism industry than there were19 months ago, according to preliminary October data from the Bureau of Labor Statistics (BLS).
A full crew is required to keep hotels up and running. Without it, many establishments are forced to choose quality over quantity. Those who do the opposite have experienced devastating results.
The Biscayne Times contacted more than 30 hotels for this story. Most refused to participate out of fear of “negative publicity.” But those who did helped to create a more realistic picture of the situation on the ground, which is not what tourism officials want people to know.
Labor Shortages & Compromised Service
(Provided by Alejandro Meneses)
The pool at the Ramada Plaza by Wyndham Marco Polo Beach Resort in Sunny Isles.
Marina Temino, director of sales and marketing at the Novotel Miami Brickell Hotel, said it has had to cap sales and cut housekeeping down to every other day. Fewer worker means room turnover at the hotel is “not as fast as we used to be,” she said.
(Gabriela Yero for Biscayne Times)
Stickers placed on room doors at the Novotel Miami Brickell Hotel let guests know the space has been disinfected by the housekeeping staff.
(Gabriela Yero for the Biscayne Times)
Bathrooms being cleaned at The Local House Miami prior to guest check-in.
Alejandro Meneses, marketing manager for the Ramada Plaza by Wyndham Marco Polo Beach Resort in Sunny Isles, also said a lack of personnel in all areas – from the front desk to housekeeping – is their biggest challenge. Instead of harming sales, though, its reputation is being harmed because of bad online reviews. Not enough bartenders at the pool bar and grill area results in impatient guests who take to the web to express their dissatisfaction. It's why Meneses says they need to hire fast, to tend to guests promptly, stop the negative reviews and regain lost capital.
Similarly, the Residence Inn by Marriott Miami Beach Surfside has received negative feedback from guests dissatisfied with the cleanliness of the rooms, said Maria Libreros, director of sales. Its 60% staffing vacancy means thorough room cleanings aren't taking place daily.
“We were killed in the guest satisfaction surveys that we sent out because, of course, the guests, they come in with the notion that everything is working 100%, right, because you're still paying money,” Libreros shared. “It became an issue and put a lot of pressures and stress on the staff.”
In order to maintain Marriott standards, some senior management at the Residence Inn are assisting with housekeeping duties themselves.
“If that means managers need to get involved and help out on the floors in the rooms, that's what we do,” stated Libreros.
Katherine Reyes, general manager of The Local House Miami in Miami Beach, said “the volume of business has augmented tremendously,” making the labor shortage its most pressing issue.
Finding employees to work in the restaurant as the property prepares for the busy winter season is where Reyes says they’re “suffering” the most, resulting in lowering standards to hire baseline staff positions such as hostesses and food runners.
“We will get into hiring someone that doesn't have any experience and then taking on the task of completely training them, but then you see that lack of experience in the service that they offer. It's not the service that we're accustomed to,” Reyes said.
Hiring Incentives & Pandemic Protocols
(Bookings.com)
SLS Brickell is offering sign-on bonuses, referral bonuses, flexible schedules and increased wages in order to attract job applicants.
To attract more workers, hotels have increased compensation, among other incentives and perks.
The Novotel is offering free parking, free hotel meals and health benefits to all employees, says Temino. As housekeeping is the biggest issue, and guests’ main complaint, housekeeping wages were raised to $16-18 an hour.
Over at the SLS Brickell, general manager Said Haykal reports the hotel is offering sign-on bonuses, referral bonuses, flexible schedules and increased wages in order to attract job applicants.
The Residence Inn Surfside has increased wages for all staff, from housekeepers to front desk. Those who achieve perfect attendance for a month are eligible for extra bonuses.
(Gabriela Yero for Biscayne Times)
David Whitaker, the new CEO and director of the Greater Miami Convention & Visitors Bureau, speaking at the 2021 GMCVB convention.
“Every hotel is trying to make sure their employees are valued and welcome,” said David Whitaker, GMCVB’s new CEO and director.
In addition, the GMBHA is currently working with Miami Dade College and Florida International University to create training programs for hospitality majors to create a future workforce for the industry, said Kallergis.
On top of being understaffed while struggling to keep up with growing demand, maintaining pandemic protocols, like mask wearing, extra sanitizing and social distancing, are added stressors.
Meneses says that while Marco Polo Beach resort is pleased to see an increase in visitors, it’s struggling to maintain control of situations that could put people at risk of infection. Although employees are encouraging guests to wear their masks and there are signs placed throughout the property outlining pandemic health and safety guidelines, including in rooms and elevators, most people do not follow instructions.
“Resistance was expected, but the approach was to explain the reasoning behind it and to ensure that our team members felt safe,” said Haykal of SLS’s efforts.
Meneses also noted that another problem is not being able to request proof of COVID-19 vaccination. The hotel has no other choice but to assume guests are vaccinated and, if not, are wearing masks.
Robinson Rodriguez, operations manager of the Hyde Midtown Miami Hotel, said their biggest struggle has been staying on top of all the changes in state and federal laws, such as mask mandates and social distancing requirements.
In addition to the lack of control hotels had over the status of the pandemic and related loss of revenue, expenses have increased for things like cleaning supplies that adhere to Center for Disease Control (CDC) standards.
Reyes says the cost of cleaning products has exploded as a result of the pandemic, an increased expenditure that’s been hard to keep up with after losing about 50-60% of revenue in 2020.
For hotels, masks, hand sanitizer and disinfecting wipes have become budget busters, but they’re must to keep up with state and federal safety regulations.
Signs of Improvement
(Gabriela Yero for Biscayne Times)
Guests waiting for a table at the restaurant at The Local House Miami.
While staffing remains a top concern, the return of tourism is not. On Nov. 8, 2021, the United States opened its borders for fully vaccinated visitors. Now that international guests are back in the picture, hotels are seeing an increase in bookings, giving them hope for the future.
“In 2019, just under 6 million international visitors called Miami and Miami Beach home,” revealed Whitaker, addressing hotel workers and owners at the 2021 GMCVB convention. “We’ve missed those 6 million visitors.”
(TheVagabondGroupLLC.com)
May Mallouh, Vagabond Motel COO, says the property is “already very, very busy” for the upcoming winter season – and booking 2022 with Europeans who are now able to travel.
According to the GMCVB, the revenue per available room, or revpar – a hotel's average daily room rate multiplied by its occupancy rate – in Miami increased by 96% in 2021.
International tourists comprised much of the bookings at the Hyde Hotel Midtown Miami before the pandemic, but Rodriguez says Art Basel and the upcoming holiday season is increasing international reservations.
The Vagabond Motel is “already very, very busy” for the upcoming winter season and booking 2022 with Europeans who are now able to travel, claimed COO May Mallouh.
And although the international market hasn’t yet fully recovered, “the optimism and expectations in Miami’s tourism community are high, to not just bring international travel back to what it was, but to bring it back even bigger,” said Haykal.
Whitaker stated that while the industry has had short-term success replacing international visitors with domestic visitors, that business model wouldn’t have been sustainable in the long term.
“The numbers obviously equate to the international market being vital to our success,” he said.