As Northern Virginia continues to evolve through periods of economic uncertainty, the hospitality industry stands at a critical crossroads. It’s a sector shaped not only by global and national trends but by local dynamics — from federal policy shifts to workforce challenges and rapidly advancing technology.
To explore how the region’s hospitality leaders are responding, we sat down with NVC Board Chairman and President of the B.F. Saul Company Hospitality Group, Mark Carrier, for an exclusive Q&A. His insights reveal how one of the region’s most influential hospitality voices is balancing innovation, resilience, and strategy in a fast-changing environment.
Q: How is your organization leveraging AI to elevate guest experiences or streamline operations, and where do you see the biggest opportunities (or risks) ahead?
We’re leveraging AI through our major brand relationships with Hilton, Marriott, and Intercontinental Hotels, which AI it to enhance marketing, reservations, and loyalty programs. This directly benefits us by optimizing revenue and improving guest engagement.
On our end, our sales teams use AI to analyze client data, gaining deeper insights into business opportunities and to refine our proposals. This helps us better meet client needs and fine-tune our strategies for growth. While we’re still exploring its full potential, we see AI as a key tool for improving both operational efficiency and guest satisfaction.
The biggest opportunity we see ahead is in AI’s potential to revolutionize customer service and personalization. As we continue to leverage it, we’ll gain even deeper insights into guest preferences and behavior, allowing us to deliver tailored experiences that resonate with individual needs.
Q: With ongoing economic uncertainty, how are you adapting your business model to maintain profitability while still delivering high-value experiences?
In the hotel industry, we operate with high fixed costs. Variable costs represent only 20% of our overall structure. As a result, there’s only so much we can do in terms of limiting expenses. Over the past few years, especially during the pandemic, we streamlined our operations to be as efficient as possible. At this point, there’s limited room for further change in our day-to-day processes.
That’s why our focus is on what truly drives value: delivering excellent service, supporting our team, and being strategic in attracting and retaining guests. We’re also paying close attention to shifts in the market, identifying which clients are growing and adapting in this uncertain environment. Some organizations are thriving while others face real challenges, so we’re staying flexible, adapting to changing demand, and building relationships more deeply.
Q: Northern Virginia is evolving rapidly — what regional trends or shifts are having the greatest impact on your strategy and decision-making today?
The hospitality industry in our region is especially sensitive to economic and policy changes, particularly those connected to the federal government. Federal procurement plays a central role in our local economy, and shifts there affect everything from tourism to government contracting. Whether it’s visitors coming to see Arlington Cemetery and the Smithsonian, people traveling to meet with lawmakers, or the daily presence of federal workers and contractors, it’s all part of an interconnected system. That system is currently under pressure. We expect significant change, but there is still a lot of uncertainty around how extensive it will be and what the long-term effects will look like.
In addition, changes to immigration policies and the legal status of certain workers are having a real impact on our labor force. These factors are pushing us to stay flexible and think ahead as we adjust to the region’s changing dynamics.
Q: What’s one unexpected lesson you’ve learned from leading through volatility, and how has it reshaped your approach to innovation or risk?
A key lesson from leading through volatility is the importance of being calm, deliberate, and transparent. During uncertain times, people seek clarity and confidence. I’ve learned that steady leadership, clear communication, and staying close to the team are essential to navigating disruption.
On a broader scale, I’ve also learned to focus on our long-term strengths. Our region has weathered many challenges, and its proximity to the federal government and exceptional talent base remain assets that we can rely on. This perspective shapes our approach to innovation and risk, staying resilient, grounded in our core values, and adapting with a clear, strategic vision.
Q: As consumer preferences continue to change, how are you staying ahead of the curve in creating experiences that resonate in a post-pandemic, tech-driven world?
We’re staying ahead by focusing on innovation, service, and flexibility. While we’ve streamlined operations, we recognize that embracing technology is essential for creating experiences that resonate with today’s consumers. AI, in particular, is a critical tool we’re using to gain insights into guest preferences, optimize revenue, and enhance personalization.
We’re also staying agile, monitoring market trends, and adapting to shifts in demand. By focusing on building strong, long-term relationships with guests and partners, we can offer experiences that meet their evolving expectations, ensuring we stay relevant in an increasingly tech-driven world.
Q: Looking back over the past decade, how have you seen the entertainment/hospitality industry evolve, and what shifts have been most transformative in how people engage, connect, and spend their time?
Over the past decade, the biggest transformation has been the shift from traditional marketing to digital platforms. Nearly all hotel promotions now happen online, making digital marketing a crucial tool for reaching guests. This shift has also heightened the importance of brand affiliations, as names like Hilton and Marriott help build trust and ensure consistent quality.
Despite these changes, guest preferences have remained relatively stable — they still prioritize convenience, value, and service. Whether for business or leisure, travelers want a seamless experience that supports their goals. Independent hotels, like The Watermark in Tysons, are also finding success by offering unique experiences and leveraging digital strategies effectively.
