"I think as a nation, we've all realized just how much we depend on [getting goods] from China, Vietnam and India, and with each Covid wave and lockdown, we saw more delays," said John "JR" Reynolds, general manager of California's Kissel Uptown Oakland, which is part of Hyatt's Unbound Collection. "And it's also been a labor issue, because even after cargo ships get here, there haven't been enough workers to unload them."
Although the Kissel was originally scheduled to open last October, the supply chain slowdown forced the property to delay its debut several times before it finally opened on Feb. 24.
Still, only half of the property's 168 rooms are currently in operation, with the remainder awaiting a stalled shipment of headboards. According to Reynolds, those offline rooms are expected to open by the first week of April.
In Los Angeles, the recently opened Hyatt Place LAX/Century Blvd and Hyatt House LAX/Century Blvd, a 401-room, dual-branded hotel development, has faced similar supply chain setbacks.
The property had to delay its opening by roughly a year, in part because bathroom vanities, tile and wall coverings, among other materials and items, were in short supply due to factory closures and shipping delays.
Sometimes, a solution could be found closer to home.
When a factory shutdown in Vietnam made it hard to procure cabinets, the Hyatt Place and Hyatt House LAX/Century Blvd team partnered with a local cabinet fabricator in downtown L.A. instead.
"[The fabricator] was grateful, as much of their other work was on hold due to the pandemic," said Aaron Schock, the property's owner and developer. "We saved tens of thousands of dollars on shipping costs since they were able to drive the finished products over to the property."
New developments are far from the only properties struggling to adapt to today's supply chain-related challenges, however.
"Any property that's going through renovation will be going through the same struggles," said Reynolds. "And any property that's just trying to replace things on a regular cycle, be it terry [towels] or linen or glasses, is also going to be struggling. We work in an industry where things need to be resupplied often."
According to a survey conducted by the American Hotel & Lodging Association (AHLA) late last year, 86% of U.S. hoteliers say supply chain disruptions have had a "moderate or significant impact on operations."
"When you combine supply chain disruptions with record high gas prices and historic rates of inflation, it means hoteliers are facing increasing costs in nearly every aspect of business operations," said AHLA CEO Chip Rogers.