Market Trends - 10 Minutes News for Hoteliers - Page 108

1 min

2025 Hotel Direct Distribution Report: Unlocking ROI and reducing costs in a shifting digital landscape

🏨 Top-performing hotels using D-EDGE's strategies average a 3.5% direct distribution cost, significantly lower than the 12–28% OTA charges. The report underscores the importance of direct bookings for lower costs, higher revenue, longer stays, and fewer cancellations, advising hotels to focus on digital marketing to boost profitability and cut dependency on expensive channels.

1 min

CBRE Hotels forecasts steady growth in 2025

🏨 U.S. hotel RevPAR is forecast to increase by 2% year-over-year in 2025 with urban hotels expecting a stronger rise of 2.8%. Occupancy rates will edge up by 0.23 percentage points, and ADR will climb 1.6% year-over-year. Business travel and international arrivals, along with limited new hotel supply, are key market drivers. The economic outlook anticipates a 2.4% GDP growth and 2.5% inflation rate. CBRE's long-term projection is a 1.5% to 3.5% annual RevPAR growth, aligning closely with STR's forecast of 1.8% RevPAR and 1.6% ADR growth for the same year. Risks include tariffs, labor shortages, and Federal Reserve policies.

1 min

Travel agency sales stay strong after record year

🏠 U.S. travel industry in 2025 sees a 5% increase in air ticket sales, reaching $9.3 billion in January. Passenger trips rise by 4% to 26.7 million, with domestic trips growing 3% and international 6%. The average ticket price in January is $557, with premium class tickets at their lowest in over three years at $1,224. Industry optimism is high due to sustained demand for business and leisure travel.

Just Salad Raises $200M

🏨 InterContinental Hotels Group PLC acquired the Ruby brand from Ruby SARL for €110.5 million (~$116 million). Ruby, established in 2013, operates 20 hotels with 3,483 rooms across Europe and has 10 more hotels with 2,235 rooms in the pipeline. The acquisition includes an upfront payment of €109.9 million and a deferred €0.6 million. IHG anticipates franchise fees of $8 million in 2028 and over $15 million by 2030, with integration costs around $10 million in 2025. Additional payments to the seller could reach €181 million ($190 million) if they operate over 20,000 Ruby-branded rooms by 2030 or 2035. Integration of Ruby hotels into IHG is expected to commence in 2025 and complete by March 31, 2026, increasing IHG's system size by approximately 0.5%.

2 min

CBRE Forecast Shows RevPAR to Increase in 2025

🏨 In Dallas, Texas, CBRE forecasts a 2.0% RevPAR growth for U.S. hotels in 2025, with occupancy up by 23 basis points and a 1.6% ADR increase. This marks a 16.6% higher RevPAR than in pre-pandemic 2019. The growth aligns with a 2.4% GDP growth and 2.5% average inflation expected in 2025. Urban hotels are predicted to lead with a 2.8% RevPAR increase. Major events like the 2026 FIFA World Cup and 2028 Summer Olympics, coupled with U.S. leisure appeals, are expected to sustain a 1.5% to 3.5% annual RevPAR growth range. CBRE anticipates investment resurgence and increased transaction activity in late 2025, despite potential supply growth below 1% over the next three years due to high costs and external economic factors.

2 min

Concord Hospitality celebrates 40 years in business

🏨 Concord Hospitality, founded in Ohio in 1985 and now based in North Carolina, marks its 40th anniversary. It manages over 140 hotels, with plans to oversee 145 hotels and nearly 24,000 rooms across 25 U.S. states and two Canadian provinces by January 2025. In 2024, The Westin Atlanta Gwinnett opened, adding 348 rooms. Concord achieved a J.D. Power satisfaction score surpassing 700 points. They will open 14 hotels and six restaurants in 2025 and celebrate their anniversary with several events.

2 min

Champagne Lanson: between heritage and modernity

🍾 Vanguélis Panayotis interviewed François Van Aal, president of Champagne Lanson, about their strategy for reconquest and hospitality sector integration. Lanson, established in 1760 and active in over 80 countries, launched a "reconquest plan" in 2020, focusing on marketing and relations. Cellar master Hervé Dantan, since 2013, introduced Black Réserve cuvée with 50% Pinot Noir, 35% Chardonnay, 15% Meunier, aged five years, including 45% reserve wines and 70% Grand and Premier Crus. Champagne is shifting towards a tasting wine, paired with meals, supported by about twenty chef ambassadors. Lanson emphasizes quality in the hospitality sector, partnering with iconic hotels and restaurants, and is involved with the Hospitality Awards.

U.S. hotel performance sees continued growth in January 2025

🏨 In January 2025, U.S. hotels experienced a RevPAR increase of 4.5% to $79.42, ADR up by 3.4% to $151.20, and occupancy grew by 1% to 52.5%. The presidential inauguration, Los Angeles wildfires, and hurricane recovery efforts influenced these gains. Luxury properties saw an 8.2% RevPAR growth versus economy hotels at 1.3%. Tampa, FL topped occupancy rates at 79.9%, while St. Louis had the lowest at 42.9%. The data reflects a trend where luxury outperforms economy lodging.

Accor sees surge in demand from tech and financial sectors

💸 Accor, on Feb 21, 2025, reports an 11% revenue increase for 2024, with earnings of €1.1 billion. Revenue hit €5.6 billion; RevPAR rose by 5.7% to €75. Business and leisure travel, especially from technology and financial sectors, contributed to this. The Americas saw a 10.5% RevPAR increase. Luxury & Lifestyle revenues grew by 19%, while Premium, Midscale & Economy by 5%. CEO Sébastien Bazin projects strong 2025 results.

Tripadvisor’s AI and business strategy shift

🖥 Tripadvisor's AI initiatives, including its partnership with Perplexity, are transforming travel industry marketing. The company is leveraging AI for customer acquisition and has joined OpenAI's Operator. It plans to expand its 400,000 tours and activities offering through AI. A significant $435 million acquisition of Liberty Tripadvisor aims to increase flexibility. Tripadvisor's 2025 loyalty program aims for customer engagement, while Viator now generates 43% of its revenue, marking a strategic shift towards experiences.

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