Home Hotel management CEO of Valor Hospitality Partners says staffing crisis is at its worst

CEO of Valor Hospitality Partners says staffing crisis is at its worst


Almost every industry across the world feels pinched by the staffing crisis. Employers are not only struggling to find available talent, they are also falling behind in training them, according to Euan McGlashan, global partner and CEO of Valor Hospitality Partners.

“Right now, I’m afraid…we’re probably in the worst of times because people are talking about staff shortages, but they’re not talking about how right now in this industry we’re the ‘untrained greats. “”, did he declare. said. “What’s happening is the labor crisis is so bad that people are just taking hot bodies and throwing them right into the action, onto the battlefield.”

McGlashan said many of the complaints he hears from the service side are related to the lack of staff training.

The recent JD Power 2022 North America Third-Party Hotel Management Guest Satisfaction Benchmark survey notes customer satisfaction dropped four points on a scale of 1,000 points this year.

“The survey found that beyond investing in the physical aspects of a hotel, focusing on staff training in service can have an immediate effect on improving the guest experience. The scores Overall satisfaction scores are 139 points higher when customers feel valued. Scores also rise 135 points when staff care about customers’ needs or provide ‘warm and sincere treatment,'” reported HNN’s Bryan Wroten.

Euan McGlashan is Global Partner and CEO of Valor Hospitality Partners. (Valor Hospitality Partners)

McGlashan said Valor Hospitality Partners – an Atlanta-based full-service hotel acquisition, management and development company – is leveraging its Future Leaders program in the UK and US.

The program incorporates training to develop the team internally and increase employee engagement, he said. Valor has invested in human resources to support these initiatives.

“We can’t be the ‘Untrained Greats’,” he said. “If there’s an industry where you can’t have untrained people when the customer is looking for a great experience and you have to deliver it, [it’s hospitality].”

His company’s philosophy is to hire for personality, then train employees with the necessary skills.

Through Valor’s immersive Future Leaders training, employees learn to develop their emotional and social intelligence, self-awareness and confidence, as well as other topics relevant to today’s industry.

“Our business is extremely complex. You have to be a manager, you have to be a boss, you have to be a friend, you have to be a leader, you have to understand performance and revenue management and [environment, social and corporate governance],” he said.

McGlashan said hotel management companies like his have a responsibility to train their teams personally and professionally.

“The personal piece is what makes them grow, makes someone want to stay. [Workplace] the culture is not the love of kumbaya for everyone; it’s behavior,” he said. “But nobody takes the time to do it and it makes me really nervous.”

Unfortunately, students coming out of college or looking to start their careers don’t think of hospitality, McGlashan said.

“It’s not sexy to anyone. But the truth is, it’s the most exciting, diverse job there’s ever been, and the opportunities are endless. We teach that,” he added. .

Valor is currently struggling to fill establishment-level positions among restaurant, housekeeping and other service staff. His company is now looking for partnership opportunities with culinary schools.

“Overall we have gaps that we are still trying to fill,” he added.

Valor’s portfolio growth strategy includes signing management contracts and agreements for new construction, joint ventures and portfolio purchases.

Valor’s most recent joint venture partnership is with ICD Hospitality and Leisure, based in Dubai, United Arab Emirates, a wholly owned subsidiary of Investment Corporation of Dubai.

Through this joint venture, Valor will expand its operations in Middle Eastern markets.

“We were in Asia but pulled out during COVID. There are a few things starting to show up again in Australia and Asia,” McGlashan said.

In 2021, Valor forms a JV with Yamed Group to create Valor North and West Africa out of Casablanca, Morocco.

Also in 2021, the company announced an operating agreement with MCAP Global Finance (UK)which added 17 UK-based IHG Hotels and Resorts branded hotels to Valor’s portfolio.

McGlashan said that with inflationary pressures and supply chain constraints, “new construction is definitely going to start to slow down, and I think markets are now going to look at buying existing products. [properties], [then] renovate, reposition, rename, maybe even rebrand at some point,” he said.

McGlashan values ​​owner and project quality over quantity.

“I would say, though, that over the next five years, I would like to see the United States [portfolio] triple in size. [In the] UK we are seeing strong growth and would like to double in size,” he said. “South Africa and Sub-Saharan Africa are the regions where we are devoting a lot of time and effort at the moment.

Based on McGlashan’s experience, he reckons “there’s a ton of money” in the deal market.

He said it felt like a normal business environment, unlike 2010, when commercial mortgage-backed securities crashed and asset prices were below market value.

“No one is in distress [in the U.S.], so the prices are at market price or higher,” he said. “There are a good number of offers that are out there; we represent private equity, so we find the opportunities in the market.”

McGlashan said his team takes an aggressive underwriting approach on behalf of Valor clients.

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