Market Trends

🏨 The initial term of Hotel Management Agreements (HMAs) in the Asia Pacific has risen to an average of 17.4 years in 2023, up by four years since 2005, per a JLL survey. The survey, which included 145 contracts signed between 2018 and 2023, noted the Maldives and Japan have longer HMA durations of 26 and 23 years respectively, while Australia averages 15 years. Management fees have dropped to an average of 1.6% of revenue, with incentive fees tied to performance. Sales and marketing fees are now often 3% or more. Around 90% of contracts now include performance termination provisions.

🏨 IHG Hotels & Resorts inaugurated its first Hotel Indigo in the Middle East with Hotel Indigo Jabal Akhdar Resort & Spa in Oman, located 2,000 meters above sea level and offering 173 rooms, suites, and chalets. Approximately a two-hour drive from Muscat and six hours from Dubai, the resort features three dining outlets and a spa. Zannier Hotels partnered with NEOM for an eco-resort in northwest Saudi Arabia's Zardun, spanning 4 square kilometers with 100 rooms and suites. The Hotel Group and Hogback Development Co. plan to launch a Marriott StudioRes in Moses Lake, Wash. with groundbreaking in early 2025 and opening in spring 2026. Red Roof's economy brand, HomeTowne Studios, opened in Tampa with 124 rooms, marking Dhruv Management's expansion, including a new hotel in Bradenton, Fla. and four more under development.

🎨 Chris Stamp of Stampd and Chef Nobu's unique collaboration began with a chance meeting in LA, leading to the "Beverly Hills Sushi Club" and a successful Stampd x Matsuhisa collection, now in its 19th iteration, the Vail Sushi Club. Each collection features an exclusive colorway, such as the "Miel" inspired by Ibiza's flag. The collaboration, in line with Nobu's 30th anniversary, expands as Nobu announces new ventures in Toronto, Bangkok, Abu Dhabi, Saint Tropez, and more. Chef Nobu and Chris see a growing fusion between fashion and the culinary world, enhancing the dining experience and sparking new trends.

🏨 Radisson Hotel Group grew globally in H1 2024 with over 130 new signings and openings in EMEA and APAC. Radisson RED entered Ireland, New Zealand, Thailand, Laos, and China, nearing 90 hotels worldwide. The Radisson Collection and Radisson Blu brands expanded too, with 20 new Radisson Blu hotels. Key developments include the first Radisson Collection near the Louvre in Paris, a 10th hotel in Riyadh, and the art'otel Hoxton in London. In China, Radisson added over 5,000 rooms, contributing to its 400-property portfolio. India saw about 25 hotel signings/openings, including the country's first Cricket Stadium Hotel. Radisson's EMEA portfolio includes 520 operational hotels, and in APAC, 290; overall, Radisson operates and develops over 1,380 hotels with more than 227,310 rooms in over 95 countries.

🏡 London-based design studio Tatjana von Stein created the interior for Làlia, a private members' club in Palma, Mallorca, collaborating with local practice Gras Reynès Arquitectos. The club, set in a historic townhouse, spans four levels and includes workspaces, a restaurant, bar, gym, and event spaces. The design pays homage to local Mallorcan colors and incorporates a jewel-toned palette with artisanal elements like velvet banquette seating from Textil Bujosa. Local artisans crafted bespoke elements, such as pyrolave lava stone tables and Binissalem stone sinks. The renovation repurposed original features like reclaimed tiled flooring and marble fireplaces, emphasizing local materials and sustainability.

📝 On September 2, 2024, customer service expert and author Micah Solomon featured in an episode sharing insights on creating memorable customer experiences. He discussed the three levels of customer service, the practice of idiosyncratic mystery shopping, and the importance of language and prompt greetings in handling complaints. Solomon's background includes managing a manufacturing company and co-authoring with a Ritz-Carlton Hotel Company member, drawing from his detailed-oriented childhood experiences. The principles of customer service were highlighted as broadly applicable due to their foundation in human nature understanding.

🏖 International tourist arrivals in Africa reached 96% of pre-pandemic levels between January and July 2023. North Africa led with an 8% increase over 2019. Ethiopia attained a 28% rise, Tanzania 19%, and Morocco 15% in the same period. Travel and tourism contributed over $186 billion to Africa's economy in 2019, with an additional $168 billion expected in the next decade. Room growth since 2020 hit 20%, totaling 92,134 rooms. Radisson Hotel Group targets growth in Cape Town, Victoria Falls, and Zanzibar, planning to add resorts in key safari and coastal locations.

🎭 L'Abysse Monte Carlo, a 90-square-metre restaurant located in Hôtel Hermitage, Monaco, showcases a design inspired by the Seto Inland Sea archipelago and Japanese prints. Chef Yannick Alléno and sushi expert Yasunari Okazaki offer a Franco-Japanese culinary experience. Designer Laurence Bonnel and Rowin Atelier incorporate materials such as marble, travertine, wood, ceramics, and velvet, with a color palette featuring coral, indigo, and pink. Art installations like William Coggin's Coral Wall add to the ambiance.

🏠 Autograph Collection Hotels, under Marriott Bonvoy, opened Cicada Resort Bali Ubud in Indonesia, featuring 20 suites and 10 pool villas with plans for 15 more rooms. Radisson Hotel Group signed Park Inn by Radisson Melbourne Carlton, its first Australian property, with an 89-room hotel set to open in Q4. The U.S. hotel industry saw occupancy rise to 66.1%, ADR to $154.80, and RevPAR to $102.30 YOY, with Houston leading in occupancy (+31.7%) and Chicago in ADR (+41.8%) and RevPAR (+51.1%). Choice Hotels' SOAR program secured its first contract for two Georgia hotels, aiding underrepresented entrepreneurs, after 28 new contracts in the previous year.

🏨 Accor has renewed agreements for over 40 hotels, totaling 5,500 keys in Australia, with more than $450 million invested in renovations since 2022. Celebrating a 40-year relationship, Accor and Silversea Investments signed a long-term franchise agreement to refurbish and rebrand Novotel Sydney Parramatta to Novotel Sydney Rosehill. Trilogy Hotels manages these properties, poised to benefit from Parramatta infrastructure development and the 2026 opening of Western Sydney Airport. Sofitel Noosa Pacific Resort on the Sunshine Coast also extended its partnership with Accor. With a presence exceeding 30 years, Accor operates a network of 350+ hotels in Australia and has expanded operational support in key Pacific cities, boasting over 300 team members aiding 200+ managed hotels. Additionally, Accor's portfolio spans 19 brands and over 400 hotels across Australia, New Zealand, Fiji, and French Polynesia.