Guest Contributor

🏨 Despite ongoing inflation, the hospitality sector's room revenue growth is driven by higher average daily rates (ADR), with occupancy still below pre-pandemic levels. Wage growth exceeds revenue growth, pressuring profitability. Travel behavior is changing: one-night stays are down, longer stays are up, international travel and corporate travel remain below 2019 levels. New trends include office-to-hotel conversions and a focus on unique guest experiences. Transaction activity fell in 2023 and continued to decline in 2024, yet the sector presents opportunities for value-add investments and innovations.

🏨 In hospitality, guest and employee feedback is crucial. Surveys aim for actionable insights, balancing quantitative metrics with qualitative stories. Net Promoter Score (NPS) benefits from an open-ended follow-up question. AI tools now analyze qualitative data, enhancing decision-making. Best practices for surveys include brevity, strategic timing, and prompt analysis. George Polyard, VP of Customer Experience at ComOps, underscores the value of qualitative feedback for continuous improvement in hospitality.

🏨 In the hotel industry, continuous improvement resembles a race with a moving finish line, demanding speed, anticipation of guest needs, and delivery consistency despite labor market challenges. Change unfolds in three phases: compliance within the first two quarters, understanding by the third quarter, and ownership by the fourth quarter, as outlined by Ryan Zarb, VP of Carpedia International. Sustaining gains requires addressing "broken windows"—minor lapses in accountability that can erode progress—and building a high-performance culture ensures long-term benefits and continuous improvement. Leadership and vigilance are essential to maintain and build upon improvement initiatives.

💰 The EB-5 Immigrant Investor Program, aimed at projects such as hotel construction, offers low-cost capital by attracting foreign investors seeking U.S. residency. It provides flexible financing options for development, debt refinancing, and expansion, attracting investors from China, India, Vietnam, and Brazil. The program mandates the creation of at least 10 full-time jobs per investor, aligning with large-scale projects and catalyzing growth in Targeted Employment Areas (TEAs) with lower investment thresholds. EB-5 also fosters a global network and mitigates market risks by offering stable investment alternatives.

🐉 Tareq Bagaeen, CEO of aQedina, highlighted China's economic growth, albeit slower. Marriott and Hilton adjusted outlooks in early 2024 due to a dip in domestic travel, particularly in second-and third-tier cities. Mandarin Oriental saw a 13% year-over-year revenue increase in Asia in the first half of 2024. Marriott boasts more than 550 properties in Greater China, with significant signings in 2024. Mandarin Oriental opened its 10th property in China, the Qianmen, Beijing, in October 2024. Major hotel groups continue to expand, expecting a rebound by Chinese New Year 2025.

🏖 Club Med pioneered the all-inclusive resort concept in the late 1950s. Expansion in the Caribbean and Mexico occurred after Sandals and SuperClubs' success in the 1980s. A significant milestone was reached in 2021 when Marriott and Blue Diamond formed a partnership, followed by Hyatt's acquisition of Apple Leisure Group and Hilton establishing an all-inclusive division. Sandals International, with a return guest rate over 50%, contributed to the sector's evolution. Upscale offerings now include Sandals' first-ever Two-Story Overwater Villas in Saint Vincent and the Grenadines launched in 2024. Partnerships with experienced operators are common, such as Hyatt's with Grupo Piñero, expanding their Inclusive Collection by 30%. Accor's Ennismore launched its first all-inclusive, SLS Playa Mujeres, in November 2024. The global expansion is targeted, with Asia and the Middle East as potential new markets. All-inclusives are expected to lead global travel with their seamless, curated experiences.

🏃 Luigi Romaniello completed his first marathon, the 2024 New York City marathon. After a hiring tour across top universities like Cornell and Boston University, Romaniello, managing director of the Waldorf Astoria New York, and Steven Snyder, the hotel's director of talent and culture, sought hospitality staff for the hotel's reopening in spring 2025. The iconic Waldorf Astoria, first opened in 1931 and now under renovation since 2017, will reopen with 375 rooms and 375 private residences, post the renovation led by Skidmore, Owings & Merrill, and Pierre Yves-Rochon.