Mainebiz

V O L . X X I X N O. I I I F E B R UA R Y 6 , 2 0 2 3 8 B U S I N E S S M A I N E B U S I N E S S M A I N E B U S I N E S S N E W S F RO M A RO U N D T H E S TAT E B I Z M O N E Y Hospitality industry's 2023 challenge: 'Labor, labor, labor' B y A l e x i s W e l l s L abor shortage continues to be an issue for Maine's hos- pitality industry, according to Matthew Arrants, a hotel investor, developer and advisor with Arrants Co. Arrants, who spoke at MEREDA's annual Real Estate Forecast Conference in Portland on Jan. 26, was blunt about the challenge. "Labor, Labor, Labor … This has been the biggest issue," he said. "The availability of labor of any kind is a huge issue here. It is all chalked up to housing and the lack of workforce housing, and labor costs are going up." In the past year, Maine's hospitality industry had plenty of visitors, but couldn't always meet the demand, with labor-intensive sectors like hotels and restaurants having to curtail some operations or services. This year Arrants expects that "revenge travel" after pandemic lockdowns will come to an end and he thinks international travel could make a comeback, with travelers going overseas rather than taking driving trips to places like Maine. The good news is that Maine has been "discovered," and there will be plenty of people here this year and in 2024. Business travel and group and corporate travel are back, and the state will continue to see people coming here for work travel. "Hotel demand will continue to grow in 2023 despite an expected recession," said Arrants. "Maine is at levels it hasn't seen before. Why? Because Maine was the first market to recover from the pandemic." Arrants said during his presentation that Maine is a drive-to destination, focused on the outdoors, and has fit well with COVID-19 restrictions. "Strong demand led to rate and growth. Operators could charge whatever they wanted. People wanted to be here," he said. Hotel demand will continue to grow in 2023 despite an expected recession. — Matthew Arrants Arrants Co. L.L.Bean plans $50M in campus work L.L.Bean said it will invest more than $50 million in the Freeport-based busi- ness' flagship store and retail campus "to more fully activate the brand's pur- pose of enabling people to experience the restorative benefits of being out- side." Once complete, the project at the iconic Maine outdoor gear and cloth- ing retailer will include a more attrac- tive and accessible entrance and façade on Main Street that's better suited for pedestrians. Discovery Park, the center of the campus which features seasonal events like concerts and ice skating, will also be expanded with physi- cal amenities for more community engagement and also connect more fluidly with Main Street. Improved access will be made to the campus, outdoor event offerings and retail stores for both customers and employ- ees. e project team for what is being dubbed "the Freeport Experience" is Zachau Construction of Freeport; Boston-based architect Arrowstreet, Inc.; architects and engineers WBRC S O U T H E R N

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