Market Trends

🏨 Barry Sternlicht, creator of hospitality giant Starwood, sold it to Marriott for $13 billion in 2015. In February 2025, Sternlicht’s SH Hotels & Resorts will rebrand as Starwood. The new Starwood begins with 14 hotels across Baccarat, 1 Hotels, and Treehouse brands, unlike its predecessor's 1,300 properties and 11 brands. Sternlicht, aged 64, plans to expand with 22 hotels by 2028 and is open to selling a stake for faster growth. Starwood Capital Group, headed by Sternlicht, manages over $115 billion in assets. The company’s innovations include the Westin Heavenly Bed and the Starwood Preferred Guest rewards program. Starwood’s historical milestones include a $561 million acquisition of Westin in 1995 and a $9.8 billion purchase of ITT Sheraton in 1997.

📰 In December 2024, the U.S. hotel industry saw occupancy rise to 53.2% (up 1.1% from 2023), ADR increase to $156.67 (up 3.3%), and RevPAR grow to $83.30 (up 4.4%). New York City led with 87.9% occupancy, a 1.4% increase. The lowest occupancies were in Minneapolis (46.1%) and Detroit (47.5%). Top 25 Markets outperformed in occupancy and ADR compared to other markets.

🍻 The James Beard Foundation announced three new categories for the 2025 Restaurant and Chef Awards focused on beverages. New awards include Best New Bar for establishments opened between Oct 1, 2023 - Sept 30, 2024, Outstanding Professional in Beverage Service, and Outstanding Professional in Cocktail Service. The Outstanding Bar category, introduced in 2012, and the Outstanding Wine Program, dating back to the awards' start in 1991, were joined by these new categories. Bars opened in Q3 of 2024 are eligible for the 2026 Best New Bar award. Previously existing Outstanding Wine, Spirits, or Beer Professional category was discontinued after a hiatus in 2020-2021. The foundation seeks to honor excellence in the beverage sector, reflecting industry trends and consumer interests. Awards criteria have been updated to align with the foundation's values and include a requirement for nominees' sustainability and equity statements.

👨 Hilton achieved a 7.3% net unit growth in 2024 by adding 973 hotels and nearly 100,000 rooms—their largest ever annual increase. Their development pipeline expanded with over 1,430 hotel signings representing 154,000 rooms, and a total pipeline of roughly 3,600 hotels and over 498,500 rooms. Construction started on 88,500 rooms, with one in five hotel rooms under construction globally set to join Hilton. New brands like Graduate by Hilton and Spark by Hilton, and partnerships such as one with SLH, contributed to growth. Hilton anticipates 6-7% growth in 2025, operates in 140 countries, and welcomed more than 224 million guests in 2024.

🏨 After years of competition from Airbnb, the hotel industry is experiencing a resurgence. Historical parallels are drawn to French craft guilds, which set high standards and were disrupted during the French Revolution. The hotel sector faced similar disruption from short-term rental platforms, leading to market saturation and inconsistent service. Hotels are now being favored for their reliability and regulated quality assurance, like the star-rating system which ensures consistent standards, such as in five-star French hotels. Travelers are shifting back to hotels for dependable, quality experiences.

🛠 Craft in hospitality emphasizes care, transforming ordinary experiences into extraordinary ones by not scaling but focusing on thoughtful details. It reshapes both guest and host, fostering human connections and spreading care. Hospitality, seen as a craft, creates impactful stories in guests' lives. The challenge posed is to infuse more care into crafted experiences, elevating details to resonate on a deep, human level. —Isaac.

🏨 SiteMinder's report indicates hotel websites generated an average of £403 per booking in 2024, outperforming OTAs by over 60%. Direct bookings rose by 8.5% from the previous year and surpassed global distribution systems by 35% and wholesalers by 15%. UK hotel websites maintained the third highest revenue-generating channel. The Top 12 booking sources for UK hotels in 2024 were led by Booking.com, followed by Expedia Group, and included Agoda and TBOHolidays. UK bookings were dominated by short stays (92% for one or two nights), with an average booking lead time of 35 days and cancellations at 18.25%. Average UK room rates in 2024 were £202, peaking in July at £228. Fridays were the highest revenue day for UK properties, averaging £18 more than Saturdays.

📢 Judith Cartwright, founder and managing director of Black Coral Consulting, discussed revenue challenges and profitability strategies for hotels on a podcast recorded at the end of January 2025. Cartwright, previously SVP at Kertzner International, emphasized the importance of optimizing peak seasons, which for some hotels account for 70% of profits within three to four months. The conversation touched on innovation, staying competitive, and the impact of events like Taylor Swift concerts on hotel demand. She highlighted the significance of experience creation, social media's evolving role, and the need for hotels to innovate in areas such as fitness and wellness. Operational profitability was also discussed, stressing cost awareness and strategic planning involving various departments. Cartwright recommended early expert involvement in projects and provided insights into technology and culture that support effective revenue and profit strategies.