TOP NEWS - 10 Minutes News for Hoteliers - Page 103

2 min

Brookfield acquires stake in Tokyo luxury hotel in $1.6B deal

🏢 Brookfield invested $1.6 billion in Japan's real estate, acquiring a stake in Tokyo's Gajoen complex and a land plot in Greater Nagoya. Gajoen features a luxury hotel, two office towers, and retail spaces with 1.5 million square feet. The Nagoya plot will become a 2.4 million-square-foot multi-tenant warehouse, with construction starting in 2025 and completion by 2027. Japan’s real estate attracts foreign investment due to low interest rates, tourism, and rental yields, with cities like Tokyo, Osaka, and Niseko as prime locations.

8 min

Deflagging your hotel: Is going independent the right decision for you?

🏨 According to STR, 70% of US hotel rooms belong to brands or chains. Deflagging, a growing trend, allows hotels to escape royalty fees of 4-6% of gross revenue, gaining financial and operational autonomy. Independent hotels leverage local experiences, which is important as 52% of Gen Z travelers prioritize unique experiences. Deflagging can lead to reclaimed revenue, such as saving $100,000 a year on a $2 million revenue with a 5% fee, and higher profit margins by eliminating franchise fees, flexible revenue management, and creating new revenue streams. Successful deflagging involves cost-benefit analysis, technology investments, direct booking strategies, brand identity redefinition, and robust marketing efforts.

1 min

Lessons from Leading at Starwood, Google, and the Culinary Institute of America: Michiel Bakker’s Career Journey

🏠 Michiel Bakker, President and CEO of the Culinary Institute of America, shared his hospitality industry journey on Jan. 27, 2025. He discussed pivotal career moments and lessons learned, with support from the technology provider Shiji Group, known for streamlining hotel operations and enhancing guest experiences. The episode featured music by Clay Bassford of Bespoke Sound, specializing in Music Identity Design for Hospitality Brands.

4 min

The Metrics Every General Manager Should Track

📊 Starbucks shifted focus from average transaction value to customer loyalty, engagement, and lifetime value metrics. Their rewards program accounts for 40% of US sales, with members spending 2-3 times more than non-members. The article stresses the importance of general managers in hospitality tracking metrics like space utilization, daily guest spend, guest lifetime value (LTV), guest acquisition cost (GAC), net promoter score (NPS), sustainability, average length of stay (ALOS), user disengagement, staff turnover rate and cost, and employee net promoter score (eNPS) for competitive success and long-term growth.

OPIC Technologies’ Spatial Livestream Technology

🤖 LG Electronics secured a majority stake in Bear Robotics by acquiring an additional 30% on Jan. 22, following an initial $60 million investment in March 2024 for a 21% stake. LG now holds a 51% stake, integrating Bear Robotics' AI-driven service robots with LG's "CLOi Robots." Bear Robotics, founded in 2017, services markets in the U.S., South Korea, and Japan. LG will launch the AI Home Hub Q9 within the year, featuring Microsoft’s voice technology and multimodal sensing. At CES 2025, CEO William Cho hinted at expanding LG's robot focus to a "Zero-labor Home." LG's robotics software capabilities are enhanced by this acquisition, aiming for an integrated software platform across commercial, industrial, and home robots to shorten development cycles and improve user experience.

1 min

Why business travel will be smarter travel in 2025

💸 On Jan 27, 2025, business travel evolves with a focus on “traveling smarter,” integrating personalized, sustainable, and value-maximizing approaches. Trends include longer, multifaceted trips, AI-enhanced customized travel experiences, and prioritization of green travel options such as green-certified accommodations and rail over short-haul flights. For details, visit Travolution.

4 min

What Guests Really Want – and 5 Ways Hotels Can Deliver

🏨 68% of guests pay for a preferred view, while 78% prioritize room views, 75% balconies, and 76% better layouts. Upsell timing is crucial; guests are 24% more likely to accept a room upgrade and 48% more inclined for a different floor at check-in. Loyalty members, representing 83% who recently bought add-ons, expect personalized rewards. Communication preferences vary, with 51% opting for email and 40% in the US favor text messages. Offering control over stay details increases trust and likelihood of repeat bookings. Sources: Plusgrade Hospitality & Rail Study, 2024; Global Travel Segmentation Study, 2024.

13 min

Innovators & Influencers: Recognizing Four Lodging Industry Leaders and Their Career Journeys

📦 Charles Oswald, with nearly 300 managed hotels, launched Aperture Hotels in Atlanta, Georgia, less than two years ago and now oversees 27 hotels, including 19 third-party contracts. Aly El-Bassuni, with a 30-year career in hospitality, joined Dallas-based Aimbridge as president 18 months ago, overseeing a portfolio of over 1,200 hotels. Rachel Humphrey, after a 20-year law career, founded the Women in Hospitality Leadership Alliance in 2021 and is pushing for 50% diversity in industry conferences with the Alliance supported by 33 organizations. Miraj Patel, the youngest AAHOA chairman for 2024-2025 and president of Wayside Investment Group, focuses on strategic vision and advocates for hotelier profitability and fair competition with short-term rentals.

5 min

Is TRevPAR the key hotel metric in 2025?

🏨 In 2025, hotels prioritize TRevPAR (Total Revenue Per Available Room) over traditional KPIs like RevPAR and ADR, recognizing the need to measure all revenue streams, including room, food and beverage, spa, events, and ancillary services. TRevPAR offers a comprehensive view of hotel profitability by including non-room revenue, which is crucial as guest spending patterns shift towards experiences beyond accommodations. A formula example shows TRevPAR calculated as €500,000 of total revenue divided by 200 available rooms, resulting in €2,500 TRevPAR. Strategies for improving TRevPAR include enhancing F&B revenue, maximizing ancillary services, leveraging data for personalization, optimizing distribution channels, and merging revenue with marketing strategies.

4 min

Social Commerce, Hospitality’s Next Best Opportunity for Growth

📱 Global social commerce sales hit $992 billion in 2023, forecasted to triple by 2026. 98% of consumers may shop via social media within a year. Travel industry sees 87% of travelers seeking inspiration on social media, with 55% booking directly via these platforms. Instagram and Facebook facilitate direct hotel bookings, with features like Instagram’s Shop and Facebook’s Shops. Four Seasons saw a 23% boost in social media bookings through influencer partnerships. User-generated content (UGC) drives conversions, with Marriott’s UGC seeing 2.5x higher rates than brand content. Mobile shopping accounts for 79% of social transactions, and video content doubles conversion rates compared to images.

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