Hotel investment is up, experiential stays are in high demand, and extended stays remain a priority, but labor and technology challenges remain
Oct 15, 2024
At The Lodging Conference in Phoenix last week, hospitality leaders – from CEOs and brand executives to industry consultants – expressed strong optimism about the future of the lodging industry. However, they also discussed the challenges facing the industry and highlighted opportunities for growth.
Key takeaways
- Surge in hotel transactions: An increase in hotel transactions is expected, with approximately $5.8 billion of U.S. hotel securitized loans maturing later this year, according to JLL’s May research. This is expected to drive activity in the market;
- Growth of Unique guest experiences: Hotel guests, particularly those in the fast-growing luxury lifestyle segment, are increasingly seeking offerings that are “different, experiential, memorable and desirable. This shift reflects the rise of the experience economy, which has eclipsed the material goods economy in recent years;
- The continued popularity of extended-stay: Extended-stay lodging remains a standout sector, with high demand from both consumers and developers. This type of lodging is especially in demand near hospitals, universities, military bases and areas with ongoing construction projects;
- Ongoing labor and technology challenges: Finding and retaining employees continues to be a significant hurdle for hotels, with rising labor costs putting additional pressure on owners. Technological advances also present challenges that the industry must address.
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