Market Trends

🏠 CapitalRise completed an £8 million development facility in Hammersmith, West London, to fund a mixed-use project on Fulham Palace Road. The development includes a 40-key aparthotel and a public house refurbishment, operated by Numa Stays. This marks CapitalRise's first aparthotel project, supported by local planning, in an area with property price growth of 9.2% over three years. Katy Katani led the deal, with Voltaire Financial advising.

📚 Twenty-six percent of global travelers start their hotel search on Booking.com. Of these, 18% globally, and 40% in the U.S., leave the platform to book directly with hotels. Booking.com serves as the hotel industry's search bar, prompting industry introspection. The data highlights the importance of direct booking strategies over reliance on online travel agencies (OTAs). Industry insight: focus on selling the stay, not just the reservation.

🛑 In 2026, SiteMinder surveyed 12,000 travelers across 14 countries. Results show that 26% start hotel research on OTAs, while 21% use search engines. In the U.S., direct bookings rose to 40% from 36%, while the global average remains at 28%. OTAs charge 15-25% commission, which impacts hotel revenues. Booking Holdings spent $8.2 billion on marketing in 2025. The key strategy is to use OTAs for introductions and focus on direct conversion and customer loyalty.

💸 A commercial real estate company, with five decades in the industry, faced a budget crisis during its first hospitality project: converting a historic office tower into a 350-key luxury hotel. Within eight weeks, SSP consultants reduced the project's cost by 25%, optimizing the guestroom layout and correcting budgeting errors. This limited-scope review enabled the continued development towards construction, transforming potential financial disaster into a feasible venture.

🏨 Prism, the parent company of OYO, expanded its UK portfolio by adding 40 hotels under the Sunday Hotels and Belvilla brands. Through leasehold and long-term agreements, the expansion includes 16 Sunday Hotels and 24 Belvilla boutique hotels. The company reported a revenue increase to ₹6,940 crore (£537.2m) in the first nine months of FY26, with a 123% rise in EBITDA. Prism aims to raise ₹6,500 crore (£503m) through an IPO to repay debts.

📊 Paul Watson, VP of Hospitality at Sona, emphasizes the need for meaningful data analysis in hospitality. With abundant information from booking platforms, guest feedback, workforce management tools, and financial reports, the challenge is to extract valuable insights. Hospitality operators must focus on effectively analyzing data to make informed decisions.

🌃 H1 2026 hotel revenue rose by 10.1% despite a mere 0.6% increase in room nights sold. Athens saw a 6.9% ADR rise with stable 74.3% occupancy. Thessaloniki's occupancy dropped 2.6% while ADR grew 3.3%. Foreign arrivals in Greece up 1.4%; domestic down 0.5%. Inbound travel receipts increased 25.8% due to more trips and a 4.5% rise in spend per trip. Premia Properties plans a €250 million investment in Rhodes and Kos hotels.

🏨 Smart growth in luxury hospitality emphasizes discipline over speed due to rising costs and discerning travelers. Developers focus on long-term value by asking key questions about market support and management capability. Fast growth risks inconsistency and rate erosion. Today’s high-net-worth travelers demand unique, personalized experiences, not volume. Operational readiness and exclusivity protect asset value, while strategic growth ensures resilience across cycles. Quality, not quantity, drives long-term success.

🌍 Searches for "coolcations" have increased by 420% in the past three months, with a 300% rise in "escape the heat" searches, reveals Awaze, Europe's largest holiday rental provider. The trend towards cooler UK destinations, like Scotland, Yorkshire, and the northwest of England, is growing due to rising summer temperatures. Awaze’s UK portfolio data indicates Scotland as the most-viewed "coolcation" spot, offering appealing landscapes and nature access.

📈 Commissionable room nights rose 11.8% in the first half of 2026. The average commission per night increased by 0.8%, leading to a 13% rise in agency payouts on a like-for-like property base. Onyx CenterSource processed this data, highlighting strong volume-driven growth. Booking Holdings and Expedia Group reported a 6% growth in room nights for Q1 2026. The agency channel's growth outpaced OTAs, offering almost 12% more nights at marginally higher costs.