Market Trends

☕ According to the Costa Coffee Suzy Speaks Hospitality National Study, 56% of hotel guests pay for premium coffee even when free options exist, and nearly half have left hotels for better coffee elsewhere. This signals a shift in guest expectations, highlighting a revenue opportunity for hotels. Improving in-house coffee offerings can reduce loss from "walkout revenue." Premium coffee is defined by quality, consistency, customization, and convenience. Hotels across segments can gain by treating coffee as an all-day program.

🏨 In 2025, international demand compensated for weaker U.S. performance by major hotel groups. By Q1 2026, U.S. hotels are expected to report their best quarter in a year, aligning with CoStar data showing a 3.6% RevPAR growth. Upper-midscale hotels in the U.S. turned positive for the first time since 2024, and economy-segment hotels recovered to flat year-over-year. Hilton CEO Chris Nassetta anticipates a broader market rebound beyond luxury hotels. Analysts will watch for April data and 2026 forecasts.

🏠 On June 3, Steve Case's Exclusive Collective transitions over 200 onefinestay luxury rentals in London and Paris to Veeve. The strategic move refocuses onefinestay's approximately 3,000-property portfolio toward leisure destinations like Lake Como, U.S. Mountain West, the Caribbean, and Mexico. Previously, over 1,000 properties were in the UK and France; now only 277 remain. This pivot targets affluent guests seeking extended stays in upscale locales, with just 40 ultra-luxe homes retained in London.

💻 Ten days ago, Minor Hotels launched a global data platform to enhance customer experience and profitability. Booking.com collaborates with OpenAI to integrate AI into its services. Best Western France, a key market, tests AI for independent hoteliers. Vanguélis Panayotis, CEO of MKG, highlights AI's role in improving productivity but not replacing human touch. The Hospitality Operator Forum fosters discussions on AI's role in the hospitality industry.

🏨 McKinsey reports that service excellence is the top differentiator in the hospitality sector. Technology is reshaping the hotel experience, with 73% of guests preferring tech-integrated stays. Personalization is now crucial, with 71% of consumers expecting it and 76% feeling frustrated without it. The hotel customer journey comprises five stages: Inspiration, Research and Booking, Check-in, In-stay Experience, and Check-out/Post-stay. This journey has evolved due to guests’ demand for seamless and personalized experiences.

🏨 March 2026 in France saw the hospitality sector's resilience against economic disruptions, with overall hotel occupancy increasing by 1.7 percentage points YoY. The Average Daily Rate (ADR) rose by 1.4%, pushing Revenue Per Available Room (RevPAR) up by 4.3%. The upscale segment led with a 4.1% RevPAR growth, while midscale recorded a 5.0% increase. The budget segment struggled, with a 7.5% RevPAR decline compared to two years prior. Q1 2026 saw a 3.5% RevPAR growth overall.