Hotel Leaders Emphasize Employee Empowerment to Address Talent Retention

Hotel industry executives at the 2026 Americas Lodging Investment Summit highlighted the importance of employee empowerment, clear communication, and skill development as central strategies for attracting and retaining talent in a competitive labor market.

Leadership Perspectives on Empowerment

During a panel discussion at the 2026 Americas Lodging Investment Summit, leaders from various hotel companies discussed how empowering employees and providing role clarity are crucial to talent retention. Jimmy Merkel, CEO of Rockbridge, stated that as hotel companies grow, strong and empowered leaders become increasingly important. Merkel emphasized that empowerment is effective only when employees understand the company’s mission and their responsibilities within it. He likened empowerment to a quarterback making real-time decisions, noting that such judgment comes from thorough preparation and clear communication.

Merkel also highlighted that the company’s purpose extends beyond business outcomes to enriching the lives of both team members and guests. He argued that building a culture around this mission helps attract and retain top talent, as people are drawn to organizations where they believe in the mission and understand their role.

Employee Motivation and Retention

Anthony Rutledge, Managing Partner and CEO of HEI Hotels & Resorts, agreed with Merkel’s focus on enriching lives. He noted that employees are motivated by personal reasons, such as supporting their families, rather than by the company brand or ownership. Rutledge stated that the main challenge in the labor market is not the availability of international visa workers, but rather retaining and developing employees over the long term. He stressed the importance of providing career development, increased compensation, and a sense of purpose to keep employees engaged.

Rutledge also addressed the nature of executive leadership, noting that it can be isolating but that leaders should focus on celebrating and supporting their teams to foster long-term retention.

Building Relationships and Recognizing Individual Needs

Greg Juceam, President and CEO of Extended Stay America, discussed the distinction between attracting talent and retaining it. He explained that while recruitment may be straightforward, the real challenge lies in maintaining employee engagement during difficult times. Juceam emphasized the importance of relationship-building, understanding individual employee motivations, and recognizing opportunities to support career advancement.

He noted that leaders must be attentive to what matters to employees, as their reasons for joining a company are often personal. Juceam argued that rewarding employees and supporting their career progression are critical to effective leadership.

Defining True Empowerment and Addressing Turnover

Rob Smith, President and CEO of Stonebridge Companies, expressed skepticism about the effectiveness of “guardrails” in employee empowerment. Smith argued that true empowerment involves giving associates autonomy and then using follow-up discussions as learning opportunities. He stated that excessive turnover can hinder the development of a culture of empowerment, as stability is necessary for such a culture to take root.

Smith recounted experiences where managers were hesitant to embrace empowerment, fearing it would disrupt traditional hierarchies. However, he maintained that encouraging employees to take on managerial responsibilities ultimately benefits the organization.

Balancing Empowerment with Structure

Juceam and Smith both noted that the degree of empowerment possible depends on the hotel’s size and management structure. In larger hotels with multiple layers of management and experienced staff, employees can be given greater autonomy within clear guidelines. In smaller properties with fewer staff and less formalized procedures, there is a greater risk of inconsistency if empowerment is not balanced with clear expectations.

Juceam emphasized the need for standard operating procedures to maintain brand consistency, especially in settings with less experienced staff or limited oversight.

The Role of Mission and Skill Development

Gilda Perez-Alvarado, Chief Strategy Officer and CEO of Orient Express at Accor, underscored the importance of employees understanding the “why” behind their actions. She argued that mission clarity is the best guide for employee decision-making. Perez-Alvarado also called for the industry to adapt its approach to hiring and development, focusing on skills rather than specific functions. She noted that the uncertain environment and ongoing industry disruptions require companies to adapt their operating models and invest in continuous skill development.

Perez-Alvarado concluded that the pandemic created an opportunity for the industry to rethink traditional models and adopt new operating models, emphasizing the need for adaptability and continuous improvement in workforce management.

Discover more at CoStar.