Market Trends

📈 At a remote eco-resort, the internal promotion of a guest experience coordinator led to a significant increase in repeat bookings and referral-sourced revenue, surpassing two previous external hires. This success followed a structured apprenticeship lasting six to nine months, focusing on relationship quality metrics instead of transaction speed. The approach emphasized building sales teams from internal talent, tailored apprenticeships, and retaining experienced staff to avoid high turnover in isolated locations.

🏨 A successful hotel brand requires a holistic approach, connecting guest needs with a unique product, practical operations, and sound owner economics. Key elements include a focused guest proposition, efficient prototype development, and aligned operating models. Owner considerations like development cost and staffing are crucial. Brands must evolve through feedback and refine without losing focus. Effective scaling combines consumer insight, prototype development, and disciplined growth strategies, resulting in a repeatable operating and investment platform across various markets and economic cycles.

🏨 In September 2026, Hilton's EMEA president, Simon Vincent, discussed the company's strategy for Saudi Arabia, focusing on expanding mid-market brands and franchises. While luxury brands like Conrads and Waldorfs have already been established, the aim is to replicate the success seen in Turkey, where over 100 hotels now exist, mainly mid-market brands. The future growth in Saudi Arabia will focus on Hilton Garden Inns and Hampton hotels in provincial and secondary cities.

📈 6-12 September 2026: U.S. hotel industry shows declines due to Labor Day shift. Occupancy: 62.3% (-4.6%), ADR: $160.57 (-1.7%), RevPAR: $100.08 (-6.2%). New York City leads with occupancy at 91.8% (+4.1%), ADR $435.43 (+7.1%), and RevPAR $399.60 (+11.5%). Las Vegas sees a steep ADR drop of 20.2% to $149.68 and RevPAR decline of 32.8% to $97.55. Minneapolis' occupancy drops 17% to 57.8%. CoStar tracks 95,000 properties worldwide.

🏨 U.S. hotels, first half of 2026: Hours per Occupied Room (HPOR) dropped 3.1% for full-service and 3.5% for select-service hotels. Occupancy rose to 67.9% from 66.8% in 2025. RevPAR increased 8.9%; TRevPAR grew 9.2%. Average headcount declined by 2% (full-service) and 1.5% (select-service). Housekeeping productivity saw MPOR reductions, notably a 5% decline for select-service room attendants. Wage growth ranged from 2.9% to 3.3%. Consumer prices rose 3.5% in June, and GDP growth slowed to 1.5% in Q2.

🏄 2025 will see North America lead surf park development, with projects like Virginia Beach’s $350 million Atlantic Park and Palm Desert’s DSRT Surf. The U.S. surfing market is growing at 8% annually, with 4.23 million participants in 2024. Pricing for surf park sessions globally averages $129. Notably, a failed $60 million project in Gilbert, Arizona highlights execution risks. These parks are complex investments with high operational costs, demanding precise market analysis.

🌎 International tourism grew by 0.4% in the first half of 2026, with 690 million tourists traveling globally despite Middle East conflicts and inflation. Arrivals increased by 2% in Q1 but fell 1% in Q2, with a notable 3% decline in April. June saw a 3% global drop, including a 6% decrease in Western Europe due to heatwaves. Asia and the Pacific saw 1% growth, but the Middle East experienced a significant 22% drop. Global growth is projected at 1-2% for 2026.

💸 In the first half of 2026, the U.S. hospitality market saw a renewed yet uneven momentum after a nearly flat 2025. Hilton's RevPAR grew 4.7% in the U.S., Hyatt saw a 5.7% system-wide increase, IHG recorded a 4.8% growth in the Americas, and Marriott's luxury properties noted a 7.9% rise. Experience-driven brands like LXR Hotels and The Unbound Collection excelled, highlighting a widening divide between luxury and economy segments.

📈 UK hotels' utility costs per occupied room rose from £8.45 to £9.15, and from £8.91 to £10.10 in London, between July 2025 and July 2026. Average daily rates (ADR) increased by 4% in both the UK and London, with UK ADR rising from £176.29 to £182.47, and London's from £264.34 to £274.40. Revenue per available room (RevPAR) in the UK also saw an increase, from £152.55 to £155.89.