Market Trends

🏨 Hospitality Ventures Management Group (HVMG) launches Elevate Renovations + Development, an Atlanta-based firm offering development, project management, and advisory services to the hospitality industry. For over 20 years, HVMG has managed projects for over 65 hotels. Elevate's recent work includes a $19.6 million renovation of The Darwin Hotel, completed in 9 months, earning two Gold Key Awards in 2023. The new entity expands HVMG's services beyond its portfolio to meet growing demand.

🏨 U.S. hotel industry forecast for 2025: ADR +1.6%, RevPAR +1.8%, occupancy up to 63.1%, indicating steady growth. Economic stability with low unemployment, slowing inflation, and solid business investment contributes to the positive outlook. High-end hotels expected to lead performance. Trade and immigration policies could pose risks to inbound travel. Labor costs stabilize, GOP margins improve slightly. Growth in group and business travel anticipated, F&B departments to see high growth rates.

```html 🏨 In 2024, major hotel groups including Hyatt, Hilton, Choice Hotels, Marriott, and Radisson expanded globally. Hyatt plans 30+ new properties for 2025, adding to its 138,000-room pipeline, with Q1-Q4 openings across various brands. Hilton added over 973 hotels and 100,000 rooms, the largest annual increase in its history, and boasts a pipeline of 3,600 hotels with 498,500 rooms. Choice Hotels opened 61 extended stay hotels in 2024 and aims for upscale and midscale growth. Marriott added over 120,000 rooms, with a pipeline of 577,265 rooms across 3,766 properties, and signed 1,200 deals representing 162,000 rooms. Radisson added nearly 40,000 rooms and retained its upscale segment lead in Europe for the 13th year, with nearly 70 Radisson Collection hotels and significant openings in Paris and Madrid. ```

🏨 Hospitality ON has mapped new hotel openings worldwide over the last 10 days, including hotels from groups, chains, and networks. The color-coded map indicates hotels that opened this week (yellow), announced openings for later in the year (blue), rebranded reopenings (green), and newly signed projects slated to open in the future (orange).

🏨 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.

🍻 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.

🏨 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.

📢 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.