Market Trends

🍴 Bret Thorn, Senior Food & Beverage Editor, reports on food & beverage trends for Nation’s Restaurant News and Restaurant Hospitality since 1999, also hosting a podcast. He wrote for The New York Sun from 2005 to 2008 and worked in Thailand for Manager magazine and Asia Times from 1992 to 1997. Thorn, a magna cum laude Tufts University graduate and Phi Beta Kappa member, studied French cuisine at Le Cordon Bleu and Chinese language and culture at Nanjing and Beijing Universities. He won the 2006 Jesse H. Neal Award and joined the Disciples d’Escoffier in 2014.

🏠 Driftwood Capital launched its Driftwood Lifestyle & Luxury Division (DLLUX) in February, managing 12 assets, with $2 billion invested since 2019 in luxury and lifestyle projects, including the Westin Resort & Spa Cocoa Beach and Dream Miami. Alinio Azevedo, Managing Director, indicated that luxury hotels saw a 29% ADR increase from 2019 to 2023, with branded residences growing by 160% over a decade. DLLUX has a dedicated fund (DLLX) targeting over $3 billion in investments, focusing on luxury hospitality assets and branded residential properties.

📌 In a strategic partnership, the AAHOA and Kalibri Labs launched a national investigation into the impact of federal policy changes on the U.S. hotel industry. Early 2025 findings indicate one-third of U.S. hotel submarkets are outperforming 2024, but a larger share, especially in government and corporate segments, face declines. Over 20,000 AAHOA members and data from 36,000 U.S. hotels are involved. Surveys show 69% of hotel owners report business declines, 50% see reduced government bookings, and 61% are behind 2024's summer booking pace. Government per diem business is down 9% YOY, corporate business down 4%, and future bookings for the next 30 days are pacing 3% behind 2024. Extended Stay brands, however, are outperforming 2024 by 1-2%. California and Florida have submarkets ahead of 2024, indicating a mixed recovery.

🏕 France's outdoor hospitality sector saw a mixed 2024 season with a slight decline of 0.3% in campsite overnight stays, totaling 141.18 million, despite a sharp increase in foreign visitors (+4.6%). Coastal campsites experienced a 1% drop, while mountain and rural areas saw increases of 5.3% and 1% respectively. Bookings for Easter weekend 2025 are up by 1%. Searches for "luxury" campsites skyrocketed by +2,253% in 2024, and stays in premium campsites (4- and 5-star) grew by 1.4%, representing 61% of all campground nights. However, France lost its top spot in European tourism, slipping to third place with a 2.2% decrease. The country has lost nearly 1,600 campsites since 2000, leaving only 7,400, of which just 4,000 are high-performing. The FNHPA is calling for a national tourism strategy to address the decline and support small campsites.

🏖 In Pula, Croatia, Kermas Istria is opening Hotel Monumenti, a €85 million resort, featuring 58 rooms plus a new glass wing with 40 deluxe rooms and 8 suites. Facilities include a conference hall for 400 guests, wellness zone, and fine-dining restaurant. Overlooking Pula’s centre and Brijuni National Park, the hotel is set on a former Austro-Hungarian military barracks site. An additional 450-berth marina is planned. The hotel, employing a local 70-member team, will open in mid-May with a grand opening in autumn.

📧 EMEA hoteliers in 2025 focus on email capture rate to boost direct bookings and revenue. With the highest global database growth at 50% Year-over-Year, hotels still face 34% OTA-masked emails. Captured emails can yield $5.89 per email on average. Strategies to increase rates include training staff, creating touchpoints, and capturing emails at checkout. Full report at Revinate.

🏠 Jastar Capital plans to convert the Grade I-listed Custom House in London into a luxury hotel with 179 guest rooms, a spa, restaurant, café, and event spaces. Custom House, dating to the early 19th century and former HMRC headquarters, was vacated in 2021. Acquired by Jastar in 2023, the redevelopment includes restoring features by architect Robert Smirke. Heritage groups express concerns; a previous attempt was rejected in 2022. Consultancy by Orms, Richard Griffiths Architects, and Montagu Evans.

🏷️ SKIMS opened a retro-style diner in LA, Miu Miu offered ice cream and books, Ralph Lauren launched in London, and Louis Vuitton popped up at Heathrow. Fashion brands are creating cafés, restaurants, and pop-ups to foster community and loyalty, capitalizing on post-Covid consumer behavior shifts towards real-life, sensory experiences. These spaces act as inclusive gateways to luxury brands, aiming to draw customers back to physical stores in 2025. 📈

🏦 Accor and Propreal Capital Partners team up to launch the Sofitel Porto, slated for 2028. The partnership marks a strategic expansion in Europe, with the 132-room hotel being the first Sofitel in Porto and second in Portugal, joining the Sofitel Lisbon Avenida Liberdade. Located between Avenida dos Aliados and Rua de Santa Catarina, the hotel unites French elegance with Portuguese culture, designed by Lázaro Rosa-Violán. It's part of Accor's growth strategy in the EMEA region, complementing recent openings in the UAE and Egypt.