Guest Contributor - 10 Minutes News for Hoteliers - Page 6

3 min

The pandemic torpedoed CBD business and was a quasi-boon for the suburbs. Fives years later, what’s the impact on hotel performance?

🏢 During the pandemic, central business district (CBD) property prices in metropolitan areas (MSAs) decreased, while suburban areas saw increases. Businesses in CBDs ceased operations or moved to suburbs. The study, dividing data from 2018–2019 (pre-pandemic) and 2023–2024 (post-pandemic), observed hotel performance across 13 MSAs. CBD RevPAR grew by 5.3%, adjacent areas by 10.8%, and outlying submarkets by 13.8%. Suburban markets outperformed despite inflation rising over 20% from 2018 to 2024. Some cities like New York, Chicago, Miami, and San Francisco had over 50% of their hotels in the CBD, whereas cities like Atlanta, Los Angeles, Dallas, Houston, and Phoenix had less than 20%. The shift in economic activity and traveler preferences favored suburban markets, though trends may change depending on future business policies and safety measures.

3 min

Why choosing the right audio system is paramount for hotels

🎶 Background music in hotels affects guests' emotions and brand perception. Modern audio systems offer customizable zones and volume control from a single interface, including public address capabilities. Automation allows music to adjust to different parts of the day, enhancing staff and guest experiences. Mobile accessibility helps staff manage systems remotely, reducing the need for on-site visits and maintenance costs. These systems also offer feature updates for longevity and better ROI. Story by Ivan Schwartz, AtlasIED.

4 min

At the Destination AI Summit, artificial intelligence put under the hospitality microscope.

🏨 The inaugural Destination AI Summit took place in Washington D.C., in September, focusing on AI integration in the travel and hospitality industries. Key speakers included Shane O’Flaherty from Microsoft and Scott Hornick from Oliver Wyman, highlighting the importance of data quality, infrastructure, and standardization for successful AI adoption. Microsoft's "agentic agents" improve the booking process, while Mobi's AI platform creates personalized travel itineraries. The summit emphasized personalization, the balance of AI and privacy, and the need for strategic AI investment for long-term benefits.

3 min

6 sustainable strategies to improve hotel operations and guest satisfaction

🛡️ Eco-friendly lighting and energy-efficient appliances are key to enhancing hotel sustainability. Solar panels offer renewable energy and may provide financial incentives. Sustainable kitchen equipment, like energy-efficient refrigerators with LED lighting, IoT-enabled sensors, and eco-friendly refrigerants such as R-290 and R-600a, reduce energy use and environmental impact. Low-flow faucets and water recycling systems conserve water. Recycled or upcycled furnishings, green cleaning products, and smart room technologies that adjust energy use based on occupancy further support sustainability efforts. These measures can decrease operational costs and attract eco-conscious guests, contributing to long-term success in the hospitality industry.

6 min

Racing to win: How BWH Hotels is hitting the gas to the checkered flag

🚌 BWH Hotels, known as Best Western, operates 4,300 hotels in 100 countries. In 2024, the chain added nearly 300 properties and achieved $8.5 billion in international hotel revenue, ranking as the world’s 10th-largest hotel company by room count. At its Accelerate 2024 conference in Charlotte, BWH highlighted its record profit and growth, including $64 million in profits for members in 2023, a $17 million increase from 2022. The brand also reached $1 billion in sales revenue for the first time and saw a 6.2% increase in North American revenue ($1.75 billion) in 2023. BWH Hotels plans to open Zion Wildflower Resort in Utah in March 2025 and expand into Vietnam with properties like the Noble Crystal Tay Ho, set to complete in December 2026.

9 min

Far from town, travelers are choosing nature, naturally

🏕️ Hilton partnered with AutoCamp in February and Hyatt with Under Canvas in July to enter the "glamping" market, boosting their loyalty programs with diverse, nature-focused experiences. AutoCamp uses Airstream travel trailers and operates six locations, with two more opening in 2023 and one in 2025. Under Canvas, founded in 2009 with its first site in 2012, has locations that range from 40 to 750 acres near national parks. Hilton's 2025 Trends Report notes that 25% of travelers seek unique experiences, and 20% aim for outdoor adventures. An Under Canvas location costs up to $25 million, with KSL Capital providing equity and market knowledge, and Blackstone as a lender. Collective Retreats, a competitor, since 2015, has raised over $40 million and has locations across the U.S. with plans for international expansion, including Saudi Arabia's NEOM project.

3 min

How 2024 became South America’s breakthrough year for revenue and profit growth

🏨 South America's hotel industry saw significant growth in TRevPAR (12.1%) and GOPPAR (12.5%) from January to August 2024, outpacing Central America and the Caribbean. In Q2, South America's TRevPAR and GOPPAR soared by 16.9% and 19.0%, respectively. Peru's TRevPAR and GOPPAR jumped by 42.2% and 80.5%, while Chile's increased by 21.2% and 38.6%, and Brazil saw rises of 10.8% and 9.0%. South America's flow-through rate stood at 38%, higher than the Caribbean (32%), Canada (27%), and the United States (6%), with a 2-percentage-point higher profit margin than the Americas average, attributed to lighter labor costs.

3 min

How the BUBL method can be a winning formula for guest satisfaction

🔔 The BUBL (pronounced "bubble") method is a framework for providing exceptional guest service by recognizing the guest's need for solitude or interaction. Key steps include: Begin immediately, Untangle guest’s messages, Break your schedule, and Leave room for more interaction. This approach emphasizes the guest's importance and aims to make them feel at the center of the service provider's world. Micah Solomon, a customer service expert, advocates the BUBL method as a business-building strategy for hospitality professionals.

6 min

In the hotel industry, there are no mixed signals on mixed-use development

🏠 Mixed-use developments are integrating hotels, trending towards branded hotel residences. JLL, Hilton, and Marriott note a growing preference for mixed-use due to live, work, play consumer trends. Four Seasons has 54 locations with residential components since 1985, with 65% of new projects including residences. Accor's One Living, with 7,000 homeowners and nearly 50 locations, has over 110 projects underway. A JLL study in 2023 found luxury hotels in mixed-use developments achieve a 27% average rate premium, boosting RevPAR by 21%. Branded residences can command a 30% value premium. Marriott's St. Regis Longboat Key Resort and Residences in Florida offers extensive amenities, emphasizing the benefits of mixed-use projects.

6 min

Key considerations for hospitality borrowers tapping the CMBS market

🏨 CMBS loans offer lower capital costs for hotel borrowers and can involve complex structures with "sliced and diced" tranches of varying risk and return levels. Post-closing, the master servicer handles day-to-day operations while a special servicer manages loans with performance issues. Borrowers should negotiate loan terms for operational flexibility and tailor recourse carveouts at the term sheet stage. CMBS loans require adherence to strict financial covenants and consideration of unique asset particularities, such as seasonality in revenue. Michael D. Maloff, a partner at Dentons in Louisville, highlights the importance of proactive loan document negotiations to navigate the CMBS market successfully.

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