Market Trends

💸 Over 87% of GDS hotel reservations in 2024 are for business travel, surpassing 2019's peak. GDS connects over 600,000 travel agents to real-time hotel availability. Hotels with 40+ rooms located near business hubs, airports, or tourist spots are ideal for GDS listings. Evaluating factors like target demographic, location, demand, GDS fees, and technical capabilities is crucial in deciding if GDS is suitable for a property.

🍚 Soy Cowboy, a Pan-Asian restaurant, opened in Arlington, Texas inside the Loews Arlington hotel. Ben Berg of Berg Hospitality Group, a key figure in the Texas dining scene since 2015, established the restaurant with a unique concept focusing on shareable dishes. Soy Cowboy avoids the typical "hotel restaurant" feel by providing a separate entrance and aiming for a standalone fine dining experience. The team adapts service to accommodate convention crowds and Dallas Cowboys gameday visitors, striving for full fine dining service without sacrificing quality or speed. Despite operational challenges, it has received high service ratings on OpenTable.

🏨 Urban soft-branded hotels spend 12.6% of total revenue on sales and marketing, versus 7.3% for independent hotels. Despite higher gross operating profit (GOP) margins in independent hotels due to no franchise fees, soft-branded hotels boast higher EBITDA margins, benefiting from collective purchasing power for costs like insurance. Key trends were observed by August 27, 2024, highlighting the blend of brand benefits and operational flexibility in soft-branded hotels.

🏨 The hotel market offers three main options: traditional brand affiliation, independent operations, and since around 2000, soft brands. Soft brands blend brand benefits with operational flexibility, pioneered by entities like Morgans Hotel Group and Kimpton Hotels in the 1980s/1990s. Major hotel groups entered the soft-brand space in the 2000s, including IHG's Hotel Indigo (2004) and Marriott's Autograph Collection (2008). Other entrants include Hilton's Curio Collection (2014) and Hyatt's Unbound Collection (2016). A 2023 CBRE analysis found independent hotels in both urban and remote areas enjoyed higher GOP margins due to lack of franchise fees; however, urban independent hotels spent 18.3% more on sales and marketing labor costs compared to their soft-brand counterparts. Conversely, soft-brand hotels had higher EBITDA margins, potentially due to collective purchasing power. Despite higher revenue potential due to brand systems, soft-brand capital costs could be greater than for independents.

🏨 Marriott International opened its 600th property in the Asia Pacific excluding China with the Adelaide Marriott Hotel in South Australia. This is Marriott International's first property in South Australia, featuring 285 guestrooms and a 150-year-old landmark Adelaide General Post Office (GPO) façade. Since the first Marriott Hotel in the APEC region in Sydney in 1989, the brand has expanded to over 50 operating hotels, with close to 40 in the pipeline. Marriott's growth strategy also includes entering the midscale segment and focusing on community and economic impact, with 95,000 associates in the region and plans for nearly 10% to take new roles within APECs by the end of 2024.

🏡 Valencia Hotel Group announced the construction of Caravan Court, set to open in 2026 in Arlington, Texas. The eighth property in their collection, it will feature 145 rooms, 7 suites, and honor the 1960s era in design. Amenities include 5,000 square feet of meeting space, a restaurant, multiple bars, and proximity to the Sports and Entertainment District. The project is in partnership with Division Hotel Management and backed by the Arlington City Council, aiming to boost the local economy.

📌 Eric Jacobs appointed as Aimbridge Hospitality's Chief Global Growth Officer, succeeding Allison Reid since July 2022. CEO Craig Smith, joined March after a role at Marriott, teams with Jacobs and Executive Chairman Steve Joyce, also ex-Marriott, targeting the company's expansion. Aimbridge, based in Dallas, Texas, manages around 1,500 global properties. Jacobs, with 35 years in hospitality, previously added 2,400 hotels and 264,000 rooms to Marriott. Aimbridge focuses on Latin America, Europe, and Asia for growth, and maintains a hands-on approach with owners, emphasizing operational leadership despite corporate restructurings, the latest in February creating a dedicated owner relations team. Jacobs aims to build on Aimbridge's pillars in the coming six to eight months.

🏡 Kimpton Santo Hotel in San Antonio, Texas, set to open on August 29, 2024, as part of IHG Hotels & Resorts’ luxury collection, will feature 347 guestrooms, including 16 suites, a rooftop pool, and 13,000 square feet of event space with two ballrooms. The hotel is located at the intersection of the city's arts and business districts, merging a historic 19th-century schoolhouse with modern amenities. The property will also offer four food and beverage outlets, including Dean's Steak & Seafood housed in a restored historic building.

🏠 Choice Hotels International broke ground on three Everhome Suites in San Antonio, Texas; Bowling Green, Ky.; and Wichita, Kan., in partnership with Highside Companies, which has 25 Everhome Suites in its pipeline. The brand currently has four open, 65 planned, and over 20 under construction, aiming to open over 15 in the next 12 months. Everhome Suites Bowling Green, with 115 rooms, will open in November 2025. The equally sized San Antonio suite will also open in November 2025. Meanwhile, the 123-room Wichita suite is set for a fall 2025 opening.