David Eisen - 10 Minutes News for Hoteliers - Page 10

8 min

As 2025 barrels forward, HOTELS speaks with industry experts to gauge the top trends and topics of the year

🏨 Brian Chesky, CEO of Airbnb, predicts a profound impact of AI on the world, comparing it to the Industrial Revolution. Hotel industry leaders expect AI to transform guest experiences, with GenAI delivering hyper-personalized services. In 2025, a burst in group travel and stability in interest rates have been observed. Luxury and lifestyle travel is expected to grow to $369 billion by 2032. Environmental consciousness is pushing for sustainable practices. Eighty percent of investors plan to maintain or increase their capital investment in hotels over the next 12 months. The wellbeing trend continues to rise post-COVID, with a demand for holistic retreats. Interest rates and infrastructure developments, like in oil and gas markets, are influencing hotel industry transactions. Hilton anticipates GenAI to change booking processes in the coming years, while the return of Asian travelers, especially the Chinese, to pre-COVID levels remains uncertain. Overall, industry resilience and adaptability are highlighted for 2025.

2 min

How lodging companies are taking a page from Amazon

🛒 Relentless.com, originally registered by Jeff Bezos, redirects to Amazon, the world's most-trafficked retail website with over 2.5 billion monthly visitors. Founded in 1994, Amazon started as a book seller before search engines like Google existed. In a 1997 letter to shareholders, Bezos emphasized Amazon's customer-focused approach. Lodging giants like Marriott, Hilton, Hyatt, and IHG are now expanding their offerings beyond traditional lodging, following Amazon's example of offering everything to everyone. Marriott began as a root beer stand, showcasing the necessity of adaptation. As of 2025, the top five hotel companies aim to be more agile in their ventures, echoing Bezos' strategy.

4 min

Playa Hotels & Resorts manages many brands. What a Hyatt acquisition of it could mean.

🏨 Hyatt Hotels Corporation announced on Monday an exclusivity agreement with Playa Hotels & Resorts for potential strategic alternatives, including acquisition. The agreement lasts until February 3, 2025. Playa manages 24 resorts and works with Hyatt on 8 all-inclusives. In November 2021, Hyatt acquired Apple Leisure Group, adding to its inclusive offerings. Hyatt's Inclusive Collection room portfolio is expected to grow by 30% through a strategic joint venture with Grupo Piñero, managing Bahia Principe-branded hotels. Marriott and Hilton are also expanding in the all-inclusive segment. Hyatt holds 9.99% of Playa’s shares and has disclosed the discussions as per securities laws.

4 min

What interest rate cuts really mean for hotel real estate

🏨 U.S. hotel transaction volume peaked at $45.7 billion in 2015, then dropped to $8.1 billion in 2020 due to COVID-19 and recovered to $42.5 billion in 2022. September 2024 saw the Federal Reserve cut rates by 50 basis points, the first reduction since 2020, followed by a third consecutive cut in December to 4.25%-4.5%. Portfolio sales decreased to 8.3% of total volume in Q3 2024. SOFR is forecasted to fall to 3% during 2025-2027. Construction costs increased by 4.10% in Q2 2024, contributing to limited hotel development, with an increase in supply unlikely before late 2027 or early 2028.

3 min

Marriott International’s latest deals are outside the box

🏕 Marriott International, the world's largest hotel company, has announced deals with Postcard Cabins and Trailborn for an outdoor-centric accommodations collection set to launch next year. Postcard Cabins, known for its tiny cabins within two hours of major cities, has over 1,200 cabins across 29 U.S. properties. Trailborn offers bespoke hotels near outdoor destinations, with 559 rooms across five locations and more in development. Both brands will integrate into Marriott Bonvoy in 2025, expanding Marriott's portfolio following the outdoor travel trend heightened by the pandemic. Marriott's move follows Hilton's partnership with AutoCamp in February 2024 and Hyatt's collaboration with Under Canvas in July. Marriott's CFO, Leeny Oberg, emphasizes the company's commitment to nature-immersive travel.

2 min

Four Seasons and Extell pair on new Deer Valley resort and residential development

🏖️ Four Seasons is partnering with Extell Development Company to create a new resort in Deer Valley, Park City, Utah, marking North America's first luxury alpine village in over 40 years. The project, led by ODA Architecture, will offer 134 guestrooms, suites, and 123 private residences (1-6 bedrooms, 1,200-7,000 square feet) with ski-in/ski-out access. Additionally, 55 residences will be above the resort and an adjacent building will house 68 owner-exclusive units. The Deer Valley’s East Village will also feature a skier services facility, retail, culinary experiences, and après venues. The resort is positioned 40 minutes from Salt Lake City International Airport.

1 min

December Suppliers Guide issue of HOTELS is live

A good craftsman is only as good as his tools. It’s a well-known saying and one that has ample application to the hospitality industry. Hotels can only operate with the…

6 min

A short drive’s journey into respite: How Molly Hardie crafted Keswick Hall

🏖️ Keswick Hall, an 80-room luxury resort in Virginia, originally built in 1912 as a manor house, underwent a multimillion-dollar renovation led by Robert and Molly Hardie after their 2017 acquisition. The resort fully reopened in summer 2022 with features like a Jean-Georges Vongerichten restaurant and a Pete Dye-designed golf course. Room rates start at $500, peaking during weekends and summer. The Hardies also own The Hermitage Hotel in Nashville, sharing an excellence in customer service and luxury experience. Both hotels highlight Jean-Georges Vongerichten's culinary expertise.

4 min

Certifiably well: How accreditation can prevent ‘wellness washing’

🏩 Wellness tourism's growth has led to an increased demand for hotels with authentic wellness experiences. Sam Nazarian and Tony Robbins recently launched longevity clubs and hotels aiming to redefine wellness through life extension and holistic health practices. Wellness certification acts as third-party validation, ensuring hotels meet rigorous, evidence-based wellness standards. It represents operational excellence, credibility, and guest satisfaction. Robin Ruiz, CEO of WITT, emphasizes that wellness accreditation will be key in guiding travelers through the evolving hospitality landscape.

3 min

Hotel investment risk has normalized. That’s good news. Here’s why.

🏨 Hotel cap rate spreads decreased to 2.44% in Q1 2024, nearly 50 basis points below their long-run average since 2001, suggesting normalization in hotel investment risk. During the pandemic, hotel mortgage interest rates doubled, but by Q1 2024 spreads to 10-year Treasuries and 15-year residential mortgage rates returned close to pre-pandemic levels, at approximately 100 basis points and 124 basis points, respectively. The CBRE report indicates that these trends in the capital market signal a stabilization in the relative pricing of hotels.

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