Operating Hotels in an Era of High Pressure: In conversation with ORHMA’s Tony Elenis on costs, labour realities, and the future of hospitality
Hotel owners and operators are no strangers to volatility, but the pressures facing the industry today feel different in both depth and duration. Costs have risen, labour shortages show little sign of easing, and guest expectations have not softened to match operational realities. Yet despite these headwinds, hotels must continue to operate, adapt, and deliver, describes Tony Elenis, President and CEO of the Ontario Restaurant Hotel & Motel Association (ORHMA). What defines success in this environment is no longer rebound or recovery. It is resilience, discipline, and the ability to make thoughtful choices under constraint.
Cost Pressure as a Permanent Operating Reality
Few issues weigh more heavily on hotel operators today than cost pressure. Construction and renovation costs have risen dramatically; financing is more expensive, and everyday operating inputs, from energy to insurance to transportation, are volatile.
This reality has shifted how operators think about profitability. Rather than relying on rate growth or volume alone, hotels are becoming sharper about operational efficiency. Purchasing decisions, vendor relationships, and supply chain reliability are increasingly viewed as strategic enablers rather than back‑of‑house functions.
Industry partnerships matter more than ever in this context. ORHMA’s long-standing partnership with Foodbuy reflects a broader shift toward collaborative procurement models that help operators access scale, transparency, and data‑driven insights. For many hotels, this approach offers a way to manage cost volatility while maintaining consistency and quality for guests.
Labour: The Constraint Shaping Every Decision
While rising costs challenge margins, labour constraints shape day‑to‑day operations. “We have baby boomers exiting at a rapid pace,” Elenis said. “We have fewer youth in the workforce.” Labour shortages affect nearly every operating department, from housekeeping and front desk to maintenance and foodservice. Immigration pathways that once helped fill critical roles have tightened, and fewer hospitality‑focused education programs are feeding the pipeline.
The impact is tangible: with shortages in labour and increased pressure on existing teams, hotels risk not being able to sell all of their rooms without having the staff to service and clean the rooms. In response, hotels are redesigning workflows, cross‑training employees, and finding ways to operate more efficiently with fewer people. Retention has become as important as recruitment, with experienced staff representing continuity and stability in a demanding environment.
Balancing Efficiency with the Guest Experience
One of the most delicate challenges facing hotel leaders is controlling costs without eroding the guest experience. Technology has become an important tool in that effort. Mobile check‑in, digital keys, contactless payments, and guest apps help offset labour shortages. But Elenis cautions that technology must be applied selectively.
“Success will come to those that are able to balance personal service with automation,” he said. Automation works best when it supports staff rather than replaces human connections. Guests may embrace digital convenience, but they still value human interaction at key moments. “Guests still need that face‑to‑face experience,” Elenis said. “That hospitality smile.”
The strongest operators are intentional. They automate transactional tasks and protect the moments that define hospitality. The same discipline applies to cost control overall. Cutting silently and strategically is very different from cutting visibly and damaging trust.
Industry Support in a Complex Operating Environment
While hotel operators focus on execution at the property level, ORHMA continues to play an essential supporting role for the broader industry. Through workforce initiatives, education, advocacy, and partnerships, the association works to address challenges that individual operators cannot solve alone. “This is an industry that contributes a great deal to provincial and national GDP,” Elenis said, emphasizing the importance of ensuring hospitality realities are understood in policy and regulatory decisions.
ORHMA’s collaboration with partners like Foodbuy, colleges & universities and industry leaders, reflects an increasingly integrated approach to industry support. Workforce strategy, compliance, and procurement are closely connected, and operators benefit most when those elements work together rather than in silos.
To learn more about ORHMA’s advocacy efforts, industry resources, and workforce strategy initiatives, visit ORHMA.com.
Resilience, Focus, and the Fundamentals of Hospitality
Despite the pressures facing hotels today, Elenis remains optimistic about the industry’s future. “This industry will always survive as long as people travel,” he said. “They will always need a restaurant. They will always need a hotel.”
His advice to operators is rooted in fundamentals. Stay disciplined on costs, but do not strip away the guest experience. Invest in employees, because retention builds stability. Use technology deliberately. Choose partners who understand the realities of hospitality operations, not just the numbers on a spreadsheet.
“Don’t cut back on employee satisfaction,” Elenis said. “That’s what’s going to create success.”
In a high‑pressure era, hotels that balance efficiency with empathy and short‑term pressures with long‑term thinking will be best positioned to move forward. The challenges may persist, but hospitality’s purpose, and its opportunity, remains unchanged.
Foodbuy’s partnership with ORHMA reflects a shared commitment to strengthening the hospitality industry and helping hospitality operators navigate an increasingly complex operating environment. Beyond procurement savings, Foodbuy supports hotels with purchasing intelligence, labour-saving solutions, operational expertise, and access to supplier innovations that help properties improve efficiency, manage costs, and enhance the guest experience. In an industry under pressure, having the right strategic partners matters more than ever.