Market Trends

🏨 22-28 March 2026, Arlington, Va.: The U.S. hotel industry showed growth with occupancy at 66.8% (+2.8%), ADR at $170.30 (+5.4%), and RevPAR at $113.81 (+8.3%). San Francisco led with occupancy at 83.6% (+26.5%), ADR at $339.47 (+74.8%), and RevPAR at $283.76 (+121.1%), driven by the RSA Conference. Denver followed with occupancy at 71.1% (+20.2%), ADR at $158.39 (+23.5%), and RevPAR at $112.56 (+48.5%), boosted by the Dermatology Annual Meeting.

📅 Milan, today: Mauro Santinato discussed becoming a trendsetter in hospitality, sharing six principles from his work at Paris Society. Key ideas: create future trends by observing cultural shifts, derive inspiration from varied sources (fashion, art, etc.), ensure concepts are desirable, design for emotional impact, and maintain coherence in experiences. Relevance requires continuous evolution without losing identity. Successful trendsetting involves being right and early rather than simply ahead.

🌿 Sensory design plays a crucial role in brand experience. At Graduate Hotels, the scent evokes memories like dusty paper and freshly cut grass, reminiscent of campus libraries. Marine & Lawn Hotels & Resorts focus on the salt air and seaweed of the Scottish coast. Collaborated with perfumer Steve Soderholm from Ranger Station to capture these sensory elements, emphasizing recognition over mere fragrance. It's about creating lasting sensory memories beyond visual aesthetics.

📈 In December, an upscale Texas hotel faced a $50,000 February revenue shortfall and $1.25 million budget deficit from 2025. Within 45 days, Strategic Solution Partners' Task Force leader boosted February revenue by selling 1,173 additional rooms and cutting expenses, achieving a $130,000 GOP increase, a 36.6% GOP margin, and 93.4% flow-through. Despite a $11.19 ADR shortfall, strategic revenue management significantly improved profitability.

🏨 February saw a 4.3% increase in US RevPAR, with San Francisco leading. Accor plans to sell a 30.56% stake in Essendi for up to €975M to the Blackstone-Colony consortium, converting to a 20-year franchise model emphasizing fee-based revenue. This aligns with the asset-light trend, enabling Accor to redirect €975M for growth or shareholder returns. Kempinski acquired the 101-room Augustine Hotel in Prague, an 800-year-old monastery, marking its first purchase since the 1970s.

🏋️ Marriott partners with Lefay, integrating the Italian luxury wellness brand into its portfolio through a joint venture. With two existing resorts in Italy and three projects underway in Tuscany, southern Italy, and the Swiss Alps, wellness is now a revenue asset, not just an amenity. Data shows wellness-driven properties outperform in TRevPAR, offering a competitive edge by enhancing revenue per guest amidst inflationary pressures.

📅 2026 Easter hotel bookings in six key European markets, including Spain, France, and Italy, have risen by 12% compared to last year. Room nights booked are up 18.3%, with a 19.5% increase in France, 17.69% in Spain, and 17.06% in Italy. Average length of stays increased by 16.4% in France, 2.53% in Spain, and 6.21% in Italy. The booking window decreased by 7.09%, while cancellations fell by 4.84%. Average daily rates are relatively stable, showing only a 0.06% change.

🚪 In Istanbul, Safemark expands its reach in the Turkish hotel market through a new distribution partnership with Infomet. Hotels can now access Safemark's full range of electronic safes, designed to fit 15″ and 17″ laptops, with flexible mounting options. These safes offer advanced security features like multi-event audit trails and tamper-resistant mechanisms. This partnership aims to enhance in-room security, reduce risks, and boost guest confidence in the growing Turkish hospitality sector.

🏨 By 2030, H World Group aims to nearly double its properties from 12,000 to over 20,000 across roughly 2,000 cities in China. Last year, they reached 1 million rooms across 19 countries. The company's growth strategy targets tier three, four, and lower-tier cities, driven by the demand from “new Chinese travelers” seeking unique experiences, as highlighted by Jihong He, CSO of the Shanghai-based company.

📚 Junghyun Shin from Rhode Island School of Design won the 8th annual HD/West Elm Student Product Design Competition for his Cove lounge chair. Judged by Frank Harker and Sam Jones, the event rewards innovative lounge chair designs for commercial spaces. Shin's design will be produced by West Elm, and he receives $5,000. Emma Kean from Savannah School of Art and Design was a finalist. They will be honored on May 5th at the 22nd annual HD Awards at Wynn Las Vegas.