Market Trends

🏨 In August 2024, the U.S. hotel industry saw a year-over-year increase in occupancy by 1.5% to 66.9%, while the average daily rate (ADR) rose by 2.3% to $157.84, and revenue per available room (RevPAR) increased by 3.9% to $105.67. New York City led the Top 25 Markets with an occupancy spike of 5.2% reaching 87.3%, whereas New Orleans and Phoenix recorded the lowest occupancies at 54.1% and 58.4%, respectively. The Top 25 Markets outperformed others in both occupancy and ADR.

🏢 CooperWynn Capital secured a loan modification for the Doubletree Suites Fort Shelby in Detroit, Michigan. The hotel boasts 203 suites, over 18,000 square feet of meeting space, three food and beverage outlets, and a fitness center. This financial maneuver allows the hotel's ownership to maintain their loan with replaced covenants as the property's performance improves. Marc Sallette, principal at CooperWynn, led a marketing process to benefit the owners with the incumbent lender providing the most advantageous solution.

🏨 YOTEL to open new hotel in Belfast's historic Shaftesbury Square by late 2026, their 35th signed hotel, expanding key count to ~8,000. Partnering with Andras Hotels, YOTEL Belfast offers 165 rooms featuring space-saving design and smart technology. The £17 million investment will create jobs and boost tourism, with a planning process initiated and development starting in 2025. The brand, with 23 global properties, plans to expand in Ireland, U.K., Tokyo, Bangkok, and Kuala Lumpur.

👨 Bashar Wali, CEO of Practice Hospitality, has stayed at 249 New York City hotels and numerous others globally, never repeating a stay to better understand the guest experience. He critiques the hotel industry's reliance on shock and awe tactics, emphasizing the importance of meaningful gestures and emotional connections over points-based loyalty programs. He highlights a personal experience at W Hotel Bangkok, where personalized teddy bears created a memorable moment. Wali encourages the hospitality industry to shift from transactional service to creating memorable, emotionally resonant experiences, comparing hotels to theater where the staff's performance is key to leaving a lasting impression on guests.

📈 Real estate financial models assist in evaluating property investments, assessing economic performance, and planning strategies. They consider factors like purchase prices, rental incomes, expenses, financing, and market trends. Objectives include viability assessment, risk analysis, financing optimization, performance monitoring, and strategic planning. Common types include property acquisition, development, rent roll, operating, REIT, syndication, mortgage financing, and value-add models, each tailored to specific scenarios, such as buying, managing, or improving properties. Components vary, involving purchase prices, income projections, operating costs, interest rates, and more, to forecast profitability and risks.

🏖 Playa Hotels & Resorts opens reservations for the 355-room Kimpton Tres Rios, the first all-inclusive resort by Kimpton, part of IHG Hotels & Resorts, scheduled for early 2025 in Mexico's Riviera Maya. Spanning 326 acres with three ecosystems, the resort underwent a transformation since early 2023, featuring over 20 room categories, seven dining venues, five bars, four pools, a spa, wellness programs, and a kids' club. Kimpton's global presence includes over 75 hotels and 100+ dining venues.

🖤 REM, a furniture manufacturer for over a century, caters to the Salon, Beauty Spa, and now the Hotel and Hospitality sectors. They focus on high-quality, aesthetically pleasing, and durable furnishings like massage tables and Pedispas. Their Design Team prioritizes trends, sustainability, ergonomics, and materials. REM's environmentally-friendly product line, REM Earth, targets eco-conscious consumers. For custom-designed spa furniture that integrates comfort and ergonomics, REM collaborates with hospitality businesses. Contact at marketing@rem.co.uk or visit www.rem-earth.co.uk.

🏛 IHG Hotels & Resorts expanded in Spain with four new hotel signings: Vignette Collection Mallorca – Finca Banyols, Vignette Collection Jerez, Hotel Indigo Gandia – Beach, and Holiday Inn Express San Sebastian – Errenteria. These add to the existing 500 rooms, bringing the total to approximately 13,000 rooms across Spain. The Vignette Collection Mallorca and Jerez are set to open in the first and second half of 2025, respectively, while Hotel Indigo Gandia – Beach will also open in mid-2025. Holiday Inn Express San Sebastian – Errenteria is expected to begin welcoming guests in mid-2026. In the first nine months of the year, IHG signed around 700 rooms in Spain. Currently, IHG operates 55 hotels with 22 Iberostar properties open and 12 more planned, under eight different brands.

🍴 Bret Thorn, Senior Food & Beverage Editor for Nation’s Restaurant News and Restaurant Hospitality, guides F&B trends reporting since joining in 1999. Hosts "In the Kitchen with Bret Thorn" podcast. Wrote for The New York Sun (2005-2008), and in Thailand for Manager magazine and Asia Times (1995-1997). Magna cum laude graduate of Tufts University (1990), studied at Le Cordon Bleu (1986), and reported for ABC News during the Tiananmen Square protests (1989). His column won the 2006 Jesse H. Neal Award. Inducted into the Disciples d’Escoffier (2014). Contact: [email protected]; Social media: LinkedIn, Facebook, Twitter (@foodwriterdiary), Instagram (@foodwriterdiary).

🏡 The US STR industry generated $64 billion in annual revenue in 2023. Airbnb leads with 7.7 million listings worldwide. STRs are rented for usually less than 30 days, offering flexibility and higher-income potential. Owners benefit from tax deductions, personal use, and a broad guest range, but face challenges like regulatory issues, seasonal income fluctuations, and increased maintenance costs.