Market Trends

🏨 Global hotel brands are utilizing key money—a payment not exceeding 5% of total deal cost—to secure hotel management or franchise agreements. Marriott uses key money in about 33% of deals, while Hilton does so for roughly 9%. Sonesta International Hotels, managing 1,100 hotels, employs key money to stimulate growth and compete for conversions. The trend has surged in the past 24 months due to higher construction costs, supply-chain issues, and inflation. Choice Hotels spent 21% of gross fees on key money in 2023, and Wyndham's spending represented 9% of their gross fees. Key money can also be a defensive strategy to maintain marquee assets. Despite its benefits, some owners and operators, like Stonebridge Companies, view key money critically, preferring performance-based relationships without the strings attached.

🏠 Minor Hotels aims to reach over 850 properties by 2027, growing from its current count of over 560 hotels and 81,000 rooms. With half its portfolio in Europe, the group will diversify with over 100 new properties in Asia, 60+ in the Middle East and Africa, and 40 in Australia and New Zealand. They plan to add 47,000 rooms in three years, focusing on luxury and upscale segments, wellness, and branded residences. Exciting 2025 openings include Tivoli Kopke Porto Gaia Hotel, nhow Rome, Avani+ Barbarons Seychelles Resort, Anantara Kafue River Zambia Tented Camp, and NH Collection Maldives Reethi Resort.

🏨 Conner White appointed as vice chair and chief investment officer of White Lodging, succeeding his late father Bruce White. White Lodging, celebrating its 40th anniversary in 2025, was founded in 1985 and has developed over 210 hotels. Recently opened two properties in San Antonio in 2024 and broke ground on 13th Austin hotel in late 2024. The company manages around 60 hotels with nearly 15,000 rooms across Marriott, IHG (Kimpton), Hyatt, and Hilton brands. Jean-Luc Barone remains CEO; the firm focuses on growth through new developments and strategic acquisitions.

🌇 IHG announces the Holiday Inn Express Generation 5 design to launch in EMEAA in 2023, targeting 500 properties in the region over the next three years. The design, developed from guest behavior research, offers experiential zones and caters to the rising demand for vibrant, dynamic spaces. Holiday Inn Express Riyadh, set to open in 2026, will debut the concept. Ten projects in the UK and Europe are early adopters, plus 20 interested parties. Generation 5 follows the 2016 ‘Next Generation’ update. Currently, there are 3,206 Holiday Inn Express hotels (340,054 rooms) with 644 properties (79,079 rooms) in the pipeline.

🏡 The Admiral Fell Inn in Baltimore's Fells Point will reopen as The William Fell, a Hilton Tapestry Collection hotel, after a multimillion-dollar renovation in April. Owned by Meyer Jabara Hotels, which also operates 31 hotels and 20 restaurants, it's their first Hilton-branded property and third in Baltimore. The renovation by RD Jones + Associates includes a preserved 18th-century exterior, a modern interior with nautical art, and various room options. The hotel honors William Fell, Fells Point's first settler. Meyer Jabara Hotels was founded in 1977.