Guest Contributor - 10 Minutes News for Hoteliers - Page 6

4 min

7 hotel industry trends to keep on the radar for 2025

🏨 In 2025, private equity firms dominate hotel asset acquisitions with strategies like buying distressed assets and repositioning them for stronger returns at exit. They invest with a horizon of 6-10 years. The hotel industry is shifting to accommodate experiential group travel and corporate events, where urban hotels excel, especially with unique characteristics. Non-urban resorts outperform expectations, attracting boutique and high-end retreat demand. Deal volumes are influenced by high interest rates, economic uncertainty, and remote work trends. Catalysts like easing interest rates and improved financing conditions could revive transactions. Family offices and high-net-worth individuals (HNWIs) are becoming significant in the market, often with longer-term investment horizons and less reliance on debt. Interest grows in select-service hotels for their lean operations and luxury hotels for their premium returns and long-term appreciation. Monitoring these trends is key for stakeholders in the evolving hospitality sector.

4 min

In the Paris Olympics’ afterglow, Europe’s hotel pipeline stays the course.

🏨 Europe's hotel construction pipeline, as of Q4 2024, includes 1,661 projects with 244,464 rooms. The distribution is 736 projects under construction (112,904 rooms), 415 projects to start in the next 12 months (59,719 rooms), and 510 projects in early planning (71,841 rooms). In Q2 2021, Europe saw 169 hotels (24,472 rooms) open, coinciding with the Olympic demand. Upscale (352 projects/54,687 rooms), upper-midscale (322 projects/47,634 rooms), and upper upscale (276 projects/43,428 rooms) segments lead, comprising 57% of projects and 60% of rooms. Property conversions increased by 26% to 520 projects (61,550 rooms). The UK, Germany, Turkey, France, and Portugal account for 49% of pipeline projects and 46% of rooms; with London (77 projects/14,820 rooms) and Istanbul (49 projects/7,903 rooms) having the largest pipelines. The Hard Rock Hotel Athens Riviera, due in 2027 with 1,000 rooms, is a notable development. In Q4 2024, Europe saw 59 new hotels (7,368 rooms), with 342 hotels (48,564 rooms) expected in 2025 and 399 hotels (51,964 rooms) in 202

4 min

Crowded House: In an era of hotel brand expansion and the AOP dilemma, are owners still protected?

📌 Hotel brands' expansion, through mergers, acquisitions, and organic growth, has led to brand proliferation and internal competition, challenging the effectiveness of Area of Protection (AOP) provisions. AOPs are designed to prevent brand companies from opening competing hotels within a certain area, but they often fail to offer sufficient protection. Limitations include being brand-specific, not accounting for newly created brands, and allowing chain acquisitions. Owners' remedies are limited, often restricted to company-favored impact studies, with litigation typically prohibited. Proposed AOP improvements include broader competition restrictions, owner involvement in impact studies, and enhanced remedies like termination rights or liquidated damages for AOP breaches.

4 min

Smart spending, strong returns: 6 strategies to face hotel construction costs in 2025

🏨 Hotel development faces rising costs due to material price increases, higher contractor bids, and a tight labor market. Strategies for financial success include early and accurate budgeting with third-party validation, exploring phasing to spread expenses and support cash flow, leveraging economies of scale for procurement, ensuring on-time project delivery, adopting a design-build approach to streamline processes, and underwriting insurance costs with an Owner-Controlled Insurance Program (OCIP). These approaches help navigate economic challenges and ensure project success. Story contributed by Jake Zwaagstra, CEO of TriCelta Development.

4 min

The evolution of hotel design: creating spaces for work, leisure and community

🏨 Hotel room usage has nearly doubled from 2.5 waking hours to almost 5, driving the transition of hotel rooms into multifunctional spaces. This shift, enhanced by remote work trends and competition from platforms like Airbnb, calls for ergonomic designs with built-in charging ports and adjustable task lighting. Hotel designs now reflect local culture, with nature-inspired interiors and high-tech amenities for business travelers. Personalization in design allows guests to select décor and furniture, creating unique experiences. The hospitality industry is evolving to meet demands for flexibility, comfort, and personalized spaces.

4 min

The +1 Factor: How lodging companies can elevate guest experience and boost satisfaction

🏨 In hospitality, delivering exceptional guest experiences involves preparation, such as anticipating needs, offering loyalty opportunities, empowering creativity, maintaining property knowledge, and showing pride in work. High staff-to-room ratios in luxury hotels enable personalization. Key strategies include greeting in the guest's language, using names, and offering unique, exclusive services. These practices can improve metrics like “Guest Love” and overall satisfaction. Story by Julien Berrut, director of guest relations at InterContinental Boston.

3 min

Into the Shift: The implications of a sea change in hospitality

🏨 Despite ongoing inflation, the hospitality sector's room revenue growth is driven by higher average daily rates (ADR), with occupancy still below pre-pandemic levels. Wage growth exceeds revenue growth, pressuring profitability. Travel behavior is changing: one-night stays are down, longer stays are up, international travel and corporate travel remain below 2019 levels. New trends include office-to-hotel conversions and a focus on unique guest experiences. Transaction activity fell in 2023 and continued to decline in 2024, yet the sector presents opportunities for value-add investments and innovations.

4 min

How qualitative survey data can enhance the guest experience analysis

🏨 In hospitality, guest and employee feedback is crucial. Surveys aim for actionable insights, balancing quantitative metrics with qualitative stories. Net Promoter Score (NPS) benefits from an open-ended follow-up question. AI tools now analyze qualitative data, enhancing decision-making. Best practices for surveys include brevity, strategic timing, and prompt analysis. George Polyard, VP of Customer Experience at ComOps, underscores the value of qualitative feedback for continuous improvement in hospitality.

4 min

Fast & furious: Tracking the breakneck pace of change in hospitality

🏨 In 2025, Moore's Law appears outdated compared to the rapid technological advancements affecting the hotel industry. The Destination AI conference saw Microsoft, Hilton, and Thayer Ventures discussing changes in hotel bookings, staffing, and guest services. Hilton's Kevin Jacobs highlighted automated revenue management as a key to profitability. The 2024 EMEA Hotel Asset Managers Association's Annual Meeting focused on global geopolitical instability and AI's impact. Sustainability and diversity are now essential in the industry, with over 200 hotel professionals stressing the need for collaboration among tech providers. The industry faces the challenge of adapting to the swift changes in demographics, technology, and finance.

3 min

5 training tips to deliver exceptional customer service

🏨 In the hospitality industry, extraordinary customer service is a sustainable competitive advantage that fosters loyalty. Key strategies include situational empathy, gold-touch service (do-extra and tell-extra), anticipatory service, effective language use, and service recovery. Training can be delivered through live sessions or eLearning, tailored to the company's needs. Micah Solomon, a customer service expert, emphasizes custom training aligning with brand philosophy for guest loyalty.

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