

Expanding the Pie: Why Hospitality Profits Come from Investment, Not Just Cost-Cutting - Josiah Mackenzie
Jun 5, 2025
Discover how strategic investments can transform the hospitality industry into a profit powerhouse. Josiah Mackenzie shares insights from the NYU International Hotel Investment Forum, emphasizing that enhancing guest experiences is key to financial success. He connects high-quality service to better earnings, showcasing that cost-cutting is not the only route to profitability. This engaging discussion offers a fresh perspective on how to thrive in today’s competitive landscape.
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Profit Drivers Beyond Cost Cutting
- Profit in hospitality is not just about cutting costs but also about increasing demand and revenue.
- Investing in properties and guest experience drives profits through better design and service.
Starwood Capital's Hotel Investment Example
- Starwood Capital invests in attractive hotel brands like One Hotel that guests love for their design and experience.
- These investments create genuine guest satisfaction and loyalty, making them strong financial stories.
Link Investment to Financial Results
- Connect investments in design, brand, and experience directly to financial performance.
- Improve guest experience to justify charging more and create a virtuous cycle of profitability.