Market Trends

📈 In today's luxury market, "good life" priorities have evolved. The trend has shifted from extravagant dining and ostentatious experiences to emphasizing wellbeing, meaning, and connection. The once sought-after opulence is now replaced with a focus on personal fulfillment and interpersonal bonds.

🏨 From 22-24 June 2026, Riyadh will host the Future Hospitality Summit at Mandarin Oriental Al Faisaliah. Saudi Arabia's hospitality sector is diversifying beyond tourism, with billions invested in its economy. The nation's 40 million population drives domestic travel, supporting leisure and business tourism. Riyadh, now a hub for business and government, exemplifies this shift. This diversification creates a resilient hospitality market, balancing international tourism, domestic travel, and corporate growth for sustainable long-term investment.

🌎 In 2026, Fullstory's survey of 1,000 U.S. consumers reveals 70% traveled recently or plan to this year, despite rising costs. Hidden fees frustrate 61%, while 33% cut budgets. Alternate travel options appeal to 20%. Traditional planning tools dominate with 53% using search engines. Key booking factors are price (77%), service (51%), and convenience (48%). Personalization should offer savings, with 55% favoring discounts. 70% might switch brands after poor experiences, highlighting the need for seamless service.

📈 In 2026, U.S. hotels are grappling with a 20% labor cost rise since 2019. Labor now consumes 43% of revenue at unionized properties. Revenue from occupancy growth yields just 30% to the bottom line, whereas rate growth (ADR) achieves 60% profit flow-through. GOPPAR shifts twice as much as RevPAR per unit change. Amidst rising distribution costs, the industry must pivot from RevPAR to profit-centric metrics like GOPPAR and CPOR to ensure profitability.

📈 In Lausanne, at the EHL HumanX Summit, Andrea Monti, CEO of EHL Next, discussed hospitality innovation. Monti, with 25+ years in business, emphasizes cross-industry idea exchange, suggesting true innovation stems from outsiders. He argues the industry's reliance on occupancy metrics (85-90% in cities like Paris and Shanghai) hinders experimentation. Hospitality should measure impact, not just ADR or RevPAR. While other sectors, like sustainable agriculture, use advanced measures like social ROI, hospitality lags behind.

🏨 Eugene's hotel market has thrived, driven by university development, tech growth, and outdoor attractions. The $1 billion Phil and Penny Knight Campus and $125 million in university research spending fuel economic expansion. Over 70 tech firms like Pipeworks Studios have relocated to Eugene, boosting hotel demand. Since 2016, hotel room-night revenue surged by 40%. In 2025, Lane County recorded 3.5 million overnight stays, with Eugene-Springfield capturing 80% of the $1.4 billion visitor spending.

💰 In 2024, U.S. business travel spending hit a record $538.5 billion, up 7.5% from 2023. It supported 6.7 million jobs, contributing $366.4 billion in wages and $148.6 billion in tax revenue, including $76.9 billion federal and $71.7 billion state/local taxes. Each business trip generated about $290 in tax revenue. Business travel's GDP impact was $623.8 billion, or 2.1% of the U.S. economy. Nearly 488 million business trips were taken, emphasizing its economic importance.

🛋 Revo Hospitality Group's bankruptcy highlights critical lessons for independent hotel operators, like Odyssey Hotel Group. Rapid growth through integrations increases execution risks, while the lease model poses challenges for owners, requiring scrutiny on profitability. Operators must decide between focusing on a single jurisdiction for economies of scale or diversifying risks across regions. Odyssey Hotel Group aims to diversify risk with HMA and HLA contracts, focusing on operational excellence and expanding into Benelux, DACH, Iberia, and Italy.