Could hybrid work help hotels return to their pre-pandemic occupancy levels?

When the coronavirus pandemic first hit home, employees nationwide were told to pack up their desks and prepare to work remotely – perhaps for a few weeks or months. Fast forward 19 months, and many companies are still yet to bring workers back to the office due to concerns related to the more transmissible delta variant.

But even once office reopening plans move forward, many employees won't be returning five days a week. Instead, companies are increasingly adopting hybrid setups that allow workers to do their jobs from home a few days a week and go into the office a few days as well.

That's a setup that can benefit employees and employers alike. For the former group, it means more flexibility and fewer commuting costs. For the latter, it could mean savings on lease space. But there's another potential winner to emerge from the hybrid work trend: hotels.

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Could hybrid work revive hotels?

Though many real estate sectors took a beating during the pandemic, hotels were notably hard hit. In fact, last year, hotels saw record-low occupancy rates, and while things are picking back up, a lack of business travel is forcing hotels into a very prolonged recovery.

But as hybrid work becomes more mainstream, hotels have an opportunity to profit. Some hotel chains are already reconfiguring their rooms and common areas in an effort to make them more adaptable to remote work. And in the course of the pandemic, some chains have begun offering daily rates for remote workers who want to do their jobs outside of an office environment but not in the confines of their own homes.

► New travel rules:  Unvaccinated American travelers face tighter COVID testing upon return

In the coming months, hotels have a prime opportunity to generate revenue from those who wish to use their spaces not for leisure but as an office of sorts. In fact, some hotels may even partner with co-working providers to put their spaces to good use and help ensure a steady stream of revenue.

While leisure travel picked up a lot in 2021 compared to 2020, hotels are apt to struggle until business travel gets back to pre-pandemic levels. And while we don't have a crystal ball, it's fair to assume that we're still a good year or two away from that happening. Seeing as how many companies don't even have employees reporting back to the office yet, it's fair to assume that they won't be putting them on planes anytime soon either.

If hotels manage to position themselves strategically and price their options appropriately, they may end up enjoying a nice stream of revenue from hybrid workers. And some employers may even go so far as to subsidize daily hotel room rentals for employees who need a place to park their laptops when they're not at the office.

After all, if companies get to save money by reducing their square footage and signing less expensive office leases, it's not unreasonable to think they'd share some of that wealth in an effort to keep their employees happy and productive. And hotels could benefit from that in a very big way.

► Which parts of travel weren't changed by COVID-19?  The quality of airline and hotel service

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