Market Trends

SAN FRANCISCO, 15 APRIL 2025 – New research from vacation rental management platform Hospitable reveals that independent short-term rental (STR) hosts are increasingly rejecting large, traditional property management companies (PMCs) in favor of…

🏨 - Tariffs on goods from Canada and Mexico have recently been partially reversed. - US hotel industry impacted by both the tariffs and the surrounding rhetoric. - Construction and renovation costs could increase, potentially elongating projects. - US rooms in construction have ranged between 150,000 and 160,000 for over three years. - Last year's supply percent change was 0.6%, below the long-term average of 1.7%. - Property Improvement Plans (PIPs) may be delayed or scaled back due to higher costs. - Canadian air inbound to the US dropped by 6-7% in March. - The World Cup will be in Spain, Portugal, and Morocco in 2030. - Hotel owners and operators are advised to focus on differentiation and service quality rather than lowering rates. - The conversation between hotel brands and owners is key to navigating brand standards and financial pressures. - Some investment funds are coming to an end and may put properties on the market. - San Francisco's hotel market is showing signs of recovery. - Data from CoStar and STR is used to inform operational strategies. - The Hotel Data Conference in Nashville is an annual event for hotel data enthusiasts. - The i92-APIS dataset from the Department of Commerce provides international travel counts. In the US hotel industry, fluctuating tariffs on Canadian and Mexican goods impact construction and renovation costs, while rhetoric affects service delivery. With 150,000-160,000 rooms in construction consistently

📈 Realytics, specializing in customer experience (CX) and operational metrics, identifies top-performing brands' key traits: staff training, menu consistency, and quality service. These factors drive growth, enabling store expansion and increased foot traffic. Realytics offers benchmarking against competitors, highlighting crucial CX elements for success. A semifinalist at MURTEC 2025, Realytics provides data-driven strategies to improve guest loyalty and profitability. Their report, "CX Leaders and Laggards 2020–2024," details these findings for the restaurant industry.

🍴 Bret Thorn, Senior Food & Beverage Editor, reports on food & beverage trends for Nation’s Restaurant News and Restaurant Hospitality since 1999, also hosting a podcast. He wrote for The New York Sun from 2005 to 2008 and worked in Thailand for Manager magazine and Asia Times from 1992 to 1997. Thorn, a magna cum laude Tufts University graduate and Phi Beta Kappa member, studied French cuisine at Le Cordon Bleu and Chinese language and culture at Nanjing and Beijing Universities. He won the 2006 Jesse H. Neal Award and joined the Disciples d’Escoffier in 2014.

🏖 In Pula, Croatia, Kermas Istria is opening Hotel Monumenti, a €85 million resort, featuring 58 rooms plus a new glass wing with 40 deluxe rooms and 8 suites. Facilities include a conference hall for 400 guests, wellness zone, and fine-dining restaurant. Overlooking Pula’s centre and Brijuni National Park, the hotel is set on a former Austro-Hungarian military barracks site. An additional 450-berth marina is planned. The hotel, employing a local 70-member team, will open in mid-May with a grand opening in autumn.

🏠 Jastar Capital plans to convert the Grade I-listed Custom House in London into a luxury hotel with 179 guest rooms, a spa, restaurant, café, and event spaces. Custom House, dating to the early 19th century and former HMRC headquarters, was vacated in 2021. Acquired by Jastar in 2023, the redevelopment includes restoring features by architect Robert Smirke. Heritage groups express concerns; a previous attempt was rejected in 2022. Consultancy by Orms, Richard Griffiths Architects, and Montagu Evans.

🍫 In less than a year, Dubai Chocolate became a global dessert sensation, starting with a viral TikTok video by a Dubai-based creator. Named “Dessert of the Year” in a Hospitality Trends Report, it has inspired numerous variations across restaurants and pastry shops. A new trend, Dubai Strawberry Parfaits, layers fresh strawberries, pistachio cream, kataifi, and chocolate sauce. These desserts are now featured from brunch menus to evening offerings.

🏨 Italy-based Hotel group Gruppo UNA rebrands as UNA Italian Hospitality, focusing on Italian heritage with over 50 hotels nationwide, including UNA Esperienze and UNA HOTELS collections. Rebranding aims to boost brand recognition and cater to a growing international audience, with two-thirds of revenue from international guests. CEO Giorgio Marchegiani emphasizes authenticity and "Italianness". A new website with enhanced booking engine, virtual tours, and personalized content supports the rebrand.

📌 In the hospitality industry, optimism peaked in late 2022 due to interest rate cuts beginning in September and strong performance in urban travel, particularly international group and business demand. However, by 2023 and 2024, geopolitical developments and potential trade wars introduced uncertainty. While the fundamentals of travel demand remained robust, hotel investment decisions faced increased uncertainty from tariffs, immigration policies, and inflation, which could lead to higher interest rates. Despite global concerns, the success of individual hotels or hotel collections largely depends on local market conditions. Detailed market knowledge, understanding demand drivers, and leveraging third-party resources like STR and CoStar are essential. Immediate impacts from tariffs include increased construction costs and supply chain disruptions, while longer-term impacts might include reduced consumer discretionary spending, affecting travel demand. San Francisco's hotel market, hit by multiple challenges including the loss of conventions, tech company relocations, and a decrease in Asian travel, particularly from China, saw further declines in 2023 and 2024. Yet, JLL anticipates a recovery starting in 2025, with strong events returning, tech companies reestablishing offices, and investor interest rising, positioning San Francisco for potential growth. Overall, navigating uncertainty requires focusing on controllable factors, understanding local markets, and seizing opportunities during uncertain times.