TOP NEWS

🏗️ In Q3 2024, U.S. hotel construction pipeline reached an all-time high with 6,211 projects/722,821 rooms, up 9% in projects and 7% in rooms YOY. Under construction: 1,185 projects/148,716 rooms, a YOY increase of 11% in projects and 6% in rooms. Scheduled starts: 2,209 projects/251,797 rooms. Early planning also hit records with 2,817 projects/322,308 rooms, both up 17% YOY. Upper midscale and upscale projects compose 60% of the pipeline. Construction starts peaked in 2024. New openings for 2024 are projected at 631 hotels/72,160 rooms, a 1.3% supply increase, with 759 new hotels/86,264 rooms expected in 2025, and 938 new hotels/101,017 rooms in 2026, increasing supply by 1.5% and 1.8%, respectively.

🏨 Hyatt Hotels Corp. saw leisure transient revenue decline by about 4% in Q3, with flat revenues through the first nine months of 2024 compared to 2023. However, group rooms revenue increased 6% in Q1 of 2025, with U.S. and European markets performing strongly. Business transient revenue is up approximately 16% year-over-year. System-wide RevPAR (Revenue Per Available Room) increased by 3% in comparison to 2023, supported by a net rooms growth of 4.3%. New openings include the Park Hyatt Marrakech and the Alila Shanghai. Hyatt's pipeline consists of around 135,000 rooms, and net income reached $471 million. Membership in the World of Hyatt loyalty program has surpassed 50 million. The company noted a slowdown in new construction starts, although construction starts in China have risen in the last two quarters. Hyatt is forming new lifestyle and luxury groups, with Amar Lalvani leading the former. Attrition rates for rooms are higher than expected at about 1.5% for the year. For Q1 of 2025, Hyatt expects over 6% net rooms growth year-over-year. Hyatt has recently entered a strategic joint venture with Grupo Piñero and has sold several assets, including the Hyatt Regency Orlando for approximately $1.07 billion.

🏨 In the hospitality industry, the Property Management System (PMS) is integral for orchestrating hotel operations such as reservations, check-ins, billing, and guest services. The implementation of Artificial Intelligence (AI) with PMS can drive revenue and profitability by transforming data into actionable insights. Guest segmentation is critical for tailoring services and marketing to travel behaviors and preferences, using variables such as travel purpose, origin, booking channel, rate code, length of stay, and number of guests. AI and Business Intelligence (BI) tools, like Demand Calendar, can analyze these variables to uncover profitable guest segments and tailor hotel strategies. Effective rate structures and rate plans are established based on the guest's purpose of visit, enhancing guest attraction and satisfaction. Data accuracy, staff training, and system integrations are crucial for preparing PMS data for successful AI integration. Accurate and comprehensive data collection is essential for optimizing AI and BI tool outputs, and regular data audits and standardization ensure data quality. Implementing detailed guest segmentation and rate plans in your PMS is vital for leveraging AI to its fullest potential, leading to personalized guest experiences and increased hotel revenue.

💸 In 2024, Agilysys, Inc. unveiled the "2024 Global Hospitality Impact Study" at The Hospitality Show, revealing that 82% of hospitality executives are interested in RevPAG strategies, but 56% feel technologically unprepared. Luxury properties earn up to 40% of revenue from non-room sources. Only 12% review their technology annually, while 38% wait over four years. To optimize RevPAG, 72% are open to enhancing tech infrastructure, with 68% considering technology's dual operational and innovative role crucial.

🏨 The Hospitality Show in San Antonio, Texas, featured a panel moderated by Michael Morton of Best Western. Over 400 vendors participated in the expo at the Henry B. González Convention Center, offering innovative solutions for hotel owners and operators. Keynote speakers included Mario Bass and Leanne Harwood discussing cultural alignment in hospitality, while AI's role in the industry was explored by Matt Schwartz, Liselotte de Maar, and Jeff Thoman. Revenue optimization strategies were discussed by Kevin Carey, Doreen Burse, Kristie Goshow, and Scott Strickland. The event included a red-carpet ribbon-cutting ceremony and networking parties at Howl at the Moon, Hard Rock Cafe, and Merkaba.

🕭 In Lake Buena Vista, Florida, the Walt Disney World Swan and Dolphin announced a $275 million renovation and expansion, adding 120,000 square feet of event space. This will bring the total meeting space to 469,000 square feet and the largest contiguous event space to 175,000 square feet. The triplex has 2,619 guest rooms. A two-story annex will add 41,000 square feet of multipurpose space and a ballroom, with construction starting in November and completion expected by late summer 2026.

🏥 The Hospitality Show 2024 took place at Henry B. González Convention Center, San Antonio, Texas, starting on October 28, with a conference including an awards session. The event continued on October 29 with panels and keynotes. Panelists like Kevin Carey from AHLA and senior executives from Wyndham Hotels & Resorts, United Airlines, and KSL Resorts discussed guest experience, workplace culture, and AI. Topics included labor productivity, guest engagement across all channels, and leveraging technology for operational efficiency. Wyndham launched a combined booking platform, while United Airlines emphasized hiring versatile talent and AI for customer updates.

💰 Nearly 90 Bristol and Bath hoteliers raised £10,600 in a Walk for Wellbeing for the Hospitality Action charity. This local event contributed to the nationwide total of £110,000. Participants walked 20km from DoubleTree by Hilton Bristol City Centre to the Royal Crescent Hotel in Bath. Hospitality Action supports hospitality workers facing difficult times, including mental health and debt challenges. This was the second local walk and the fifth annual national event.

🌞 Planday and CODE Hospitality partnered to create "The Handbook to Happiness" for hospitality managers after finding 85% of hospitality employees faced poor mental health. The guide stresses planning shifts in advance, with 67% of employees desiring more notice, clear communication, and better management practices. Forza Restaurants, named Happiest Place to Work by CODE, schedules shifts a month ahead using Planday. The 13-page guide from Planday covers team bonding, mindfulness, exercise, diet, sleep, staff celebration, and music's positive effects.