Market Trends

🏨 STAAH’s Weekly Hotel Industry Quiz aims to test and update hospitality professionals on industry trends. New questions are posted every week, covering diverse topics, and are available for anyone interested in improving their hotel industry knowledge. Missed quizzes can be accessed for later testing.

🏕 Marriott International, the world's largest hotel company, has announced deals with Postcard Cabins and Trailborn for an outdoor-centric accommodations collection set to launch next year. Postcard Cabins, known for its tiny cabins within two hours of major cities, has over 1,200 cabins across 29 U.S. properties. Trailborn offers bespoke hotels near outdoor destinations, with 559 rooms across five locations and more in development. Both brands will integrate into Marriott Bonvoy in 2025, expanding Marriott's portfolio following the outdoor travel trend heightened by the pandemic. Marriott's move follows Hilton's partnership with AutoCamp in February 2024 and Hyatt's collaboration with Under Canvas in July. Marriott's CFO, Leeny Oberg, emphasizes the company's commitment to nature-immersive travel.

🏕 The report analyzes travel tech funding, including companies founded over the past 30 years and tracks funding from the start of 2014 to 3Q24. In mid-2024, Phocuswright enhanced data collection, nearly doubling the company count from prior reports. The 2023 edition expanded the founding date range due to well-established companies raising significant funds. To maintain focus, firms with over $4 billion funding or only peripherally involved in travel, like Uber and Airbnb, were omitted, excluding $117.3 billion raised by 35 such entities. Publicly disclosed venture capital, private equity, crowdfunding, and debt were considered, while IPOs and post-IPO investments were not.

🍴 Bret Thorn, Senior Food & Beverage Editor at Nation's Restaurant News since 1999 and Restaurant Hospitality since 2016, has a BA in history from Tufts University (1990). He wrote for The New York Sun (2005-2008), worked in Thailand (1992-1997), and covered Tiananmen Square protests for ABC News in 1989. Thorn won the Jesse H. Neal Award (2006), was president of IFEC (2005), inducted into Disciples d’Escoffier (2014), and authored entries in the Oxford Encyclopedia (2012) and Oxford Companion (2015). He resides in Brooklyn, N.Y.

🥞 Au Bon Pain and other fast-casual restaurants are incorporating overnight oats into their menus. This no-cook breakfast has gained popularity, especially among Gen Z, with 55% of the population aware of it and 28% having tried it. Market research by Datassential indicates a 32% growth in the past four years and projects a 140% increase in the next four years, showcasing the demand for healthy options.

🏢 During the pandemic, central business district (CBD) property prices in metropolitan areas (MSAs) decreased, while suburban areas saw increases. Businesses in CBDs ceased operations or moved to suburbs. The study, dividing data from 2018–2019 (pre-pandemic) and 2023–2024 (post-pandemic), observed hotel performance across 13 MSAs. CBD RevPAR grew by 5.3%, adjacent areas by 10.8%, and outlying submarkets by 13.8%. Suburban markets outperformed despite inflation rising over 20% from 2018 to 2024. Some cities like New York, Chicago, Miami, and San Francisco had over 50% of their hotels in the CBD, whereas cities like Atlanta, Los Angeles, Dallas, Houston, and Phoenix had less than 20%. The shift in economic activity and traveler preferences favored suburban markets, though trends may change depending on future business policies and safety measures.

🏢 In Singapore, the 1969 "modern tropical" school building, New Bahru, now a 20,156-square-metre lifestyle hub, was repurposed by FARM and Nice Projects for commercial use, housing restaurants, shops, wellness, and culture spaces, as well as serviced apartments. Formerly used as offices and F&B spaces after the school's relocation, post-independence from Singapore in 1965, New Bahru underwent minimal exterior changes to maintain its modernist architecture. The most significant layout modification was replacing part of the car park with a central lawn and playground, requiring major earthworks and traffic flow redesign. With tenants having full control over their interior design within set guidelines, the hub aims to offer unique experiences through local entrepreneurs and creatives, featuring a wellness space Hideaway by Parable and the fine dining restaurant Somma by Nice Projects.

📱 Rikke Wichmann Bruun from Cheil UK highlights a shift from B2B to B2H strategy, emphasizing personalized guest experiences in hotels. Gen Z, comprising 27% of the workforce in countries like the UK, US, Australia, and most of Europe by next year, favors personalization and technology. B2H marketing uses AI for bespoke recommendations and storytelling for relatability, proven effective with LinkedIn data showing a threefold increase in engagement for empathetic storytelling content. Samsung exemplifies this strategy, focusing on real-world problem-solving stories. The strategy seeks a balance between data-led insights, AI, and human connection.

🏨 Mid-Range Hotels: Guests expect amenities like well-maintained rooms and reliable Wi-Fi, with prices starting at $200 USD per night. Challenges include tight budgets and fierce competition. CitizenM exemplifies exceeding expectations through attention to detail. Boutique Hotels: Unique design and personal experiences are expected, with prices from $350 USD per night. Challenges lie in maintaining uniqueness and relevance. Luxury Hotels: High-quality service, attention to detail, and personalized experiences are anticipated, with costs exceeding $500 per night. Operational challenges involve maintaining consistent excellence. Top 50 Hotels in the World: Aim for perfection and "wow" factor, with prices at $1,000 per night, focusing on innovation and world-class service. Hotel success relies on technology investments, quality facilities, and exceptional staff. General managers play a crucial role in balancing guest satisfaction with operational realities.