Market Trends

🏨 U.S. hotel rooms under construction have declined for nine consecutive months as of September 2025, reports CoStar. Construction volume fell 12.3% to 137,956 rooms compared to September 2024. Final planning dropped by 3.5% to 258,836 rooms, and planning decreased 2.6% to 327,304 rooms. Isaac Collazo notes the drop is over 80,000 rooms below the Q3 2020 peak, citing uncertainty, high costs, and cautious developers. Still, more construction is ongoing than post-Great Recession.

🏠 Gregory Day, President of Hospitality at Mani Brothers Real Estate Group and Managing Director of Malibu Beach Inn, explores the evolution of luxury and formality in hospitality. He reflects on lessons from Pebble Beach Resorts and Fairmont, emphasizing the importance of balancing tradition and authenticity for memorable guest experiences. The discussion highlights varying guest expectations across cultures and regions. Music by Clay Bassford of Bespoke Sound enhances the episode's focus on hospitality brand identity.

📅 Q3 2025, Global GRI hit 87.0%, maintaining pre-summer highs. Google drove review volume growth, especially in Latin America (+17%), Africa (+7.5%), and the Middle East (+4.4%). 5-star hotels achieved a record response speed of 2.8 days, though engagement declined slightly. North America and Oceania saw GRI declines for 5-star hotels. Asia remained top-performing despite a 31% drop in Agoda reviews. Political issues led to guest sentiment decline in North America, impacting review volumes.

📚 Situ's white paper reveals generational differences in business travel preferences. A survey of over 550 business travelers shows 30% of Millennials desire full flexibility in accommodation choices. Gen Z leans towards non-hotel lodging, with only 21% using company tools. Sustainability matters to 41% of Gen X and 34% of Boomers. These insights highlight the industry's need to adapt to multigenerational needs, enhancing travel experiences and addressing sustainability and flexibility in business travel.

🏖 In 2026, travel will reflect individual identities. Nearly 49% of Brits may alter travel plans based on spiritual advice, while 68% are drawn to romantasy destinations. Relationship-testing trips interest 67%, and 77% are open to skincare-focused glow-cations. Tech aids nostalgia trips for 68%, and 79% may car-share. Souvenirs shift to kitchen culture; 65% may buy design-led items. Humanoid helpers appeal to 74% in vacation homes.

🏨 Kellie Sirna and Studio 11 Design reimagined The Talbott hotel in Chicago's Gold Coast, which joined Marriott's Autograph Collection in May. The redesign features a fictitious character with a global travel theme. Bishop’s Lodge in Santa Fe, revamped by ROAM Interior Design, highlights Native American traditions using local artisans. Natalie Smith notes a shift towards "quiet luxury." Effective hotel design involves collaboration across designers, owners, brands, and procurement teams to align goals and manage budgets.

📅 September 2025, Arlington, Virginia: U.S. hotel occupancy dropped for the seventh month, reaching 63.4% (down 1.9% from 2024). ADR was $162.69 (down 0.1%), and RevPAR $103.19 (down 2.1%). New York City had the highest occupancy at 86.6% (down 0.5%), driven by events like Fashion Week. New Orleans and Houston had the lowest occupancy at 48.5% and 55.6%, respectively, with Houston impacted by post-Hurricane Beryl displacement. Top 25 markets outperformed others in occupancy and ADR.

🏠 In 2026, the ultra-rich seek invisibility, not opulence. Privacy is key, with private estates and logo-free jets gaining traction. Emotional experiences, not aesthetics, define luxury, and community trumps exclusivity. Purpose-led travel, like coral regeneration in Maldives and eco-villas in Costa Rica, offers emotional ROI. Seasonal retreats like Eha in Estonia enhance connection. Luxury evolves from accumulation to alignment, valuing stillness over spectacle.