Market Trends

🏗 In Scottsdale, Arizona, The Phoenician, a Luxury Collection Resort, completed its Phase Two renovation of meeting and event spaces, following Phase One in 2023. Directed by Parker-Torres Design, the refurbishment includes The Phoenician Grand Ballroom, The Estrella Ballroom, and upper-level rooms, featuring modernized carpeting, wall treatments, draperies, lighting, and advanced LED and DMX systems. The resort offers over 160,000 square feet of event space, complemented with amenities like three pools, an 18-hole golf course, Athletic Club, spa, and eight dining options.

🏨 The initial term of Hotel Management Agreements (HMAs) in the Asia Pacific has risen to an average of 17.4 years in 2023, up by four years since 2005, per a JLL survey. The survey, which included 145 contracts signed between 2018 and 2023, noted the Maldives and Japan have longer HMA durations of 26 and 23 years respectively, while Australia averages 15 years. Management fees have dropped to an average of 1.6% of revenue, with incentive fees tied to performance. Sales and marketing fees are now often 3% or more. Around 90% of contracts now include performance termination provisions.

🏨 RoomRaccoon, a hotel management software provider, released the "Europe Booking Channel Trends Report for 2024," analyzing over 3.9 million reservations across Europe. UK independent hotels saw a 60% market share in direct bookings, a rise from 48%. Data was collected from over 2,000 RoomRaccoon users, comparing June 2022-May 2023 to June 2023-May 2024. Metasearch channels, particularly through Google Hotels, now rank fifth in Europe and fourth in the UK for hotel bookings. RoomRaccoon urges hotels to invest in direct booking channels to mitigate OTA commissions. Direct, Booking.com, Expedia, Google Hotel Ads, and Airbnb are the top five booking channels in the UK.

🏕️ Visitors to European destinations in Summer 2024 are expected to surpass 2019 levels, with a 6% increase in international arrivals in Q2 alone, amid local backlash and climate challenges. Locals demand more tourism revenue for community and infrastructure, following a "perfect storm" of excessive numbers, poor behavior, and heat waves and fires, as noted by Professor Richard Butler on Sep 3, 2024.

🏨 HotelHub reveals hotel prices in key global business cities increased moderately by 3.6% to $189/night in Q2 2024, compared to a 9.6% hike in Q2 2023. In Europe, the average was $176/night, while North America saw the highest regional rate at $218/night. New York's average hotel rate went up by 5% to $432/night. Booking lead time was 16.7 days, a 19% increase from Q2 2023's 14 days.

✈️ The International Air Transport Association (IATA) noted a 7.2% increase in air passenger demand in Europe for July. On September 3, 2024, this rise was reported despite falling short of the global average of 8%. European airlines saw a 7% boost in available seat kilometers (ASKs), compared to a 7.4% global average rise. International flight demand in Europe grew by 8.3%, against an 8.1% capacity expansion. The CrowdStrike IT incident in mid-July, causing numerous flight cancellations, didn’t dampen the month’s demand.

🏖 American households’ travel spending surpasses pre-pandemic levels, driven by international travel. Bank of America data (Jan-Aug 2024) shows spending per household up 10.6% from 2019, despite a slight dip compared to 2023. Europe captured 43% of spending May-Jul, while Asia's spending grew 11% year-over-year. High-income earners, above $125,000 annually, are leading the trend, opting for luxury hotels over standard accommodations this summer. View the full report at CNBC.

🏨 IHG Hotels & Resorts inaugurated its first Hotel Indigo in the Middle East with Hotel Indigo Jabal Akhdar Resort & Spa in Oman, located 2,000 meters above sea level and offering 173 rooms, suites, and chalets. Approximately a two-hour drive from Muscat and six hours from Dubai, the resort features three dining outlets and a spa. Zannier Hotels partnered with NEOM for an eco-resort in northwest Saudi Arabia's Zardun, spanning 4 square kilometers with 100 rooms and suites. The Hotel Group and Hogback Development Co. plan to launch a Marriott StudioRes in Moses Lake, Wash. with groundbreaking in early 2025 and opening in spring 2026. Red Roof's economy brand, HomeTowne Studios, opened in Tampa with 124 rooms, marking Dhruv Management's expansion, including a new hotel in Bradenton, Fla. and four more under development.

🎨 Chris Stamp of Stampd and Chef Nobu's unique collaboration began with a chance meeting in LA, leading to the "Beverly Hills Sushi Club" and a successful Stampd x Matsuhisa collection, now in its 19th iteration, the Vail Sushi Club. Each collection features an exclusive colorway, such as the "Miel" inspired by Ibiza's flag. The collaboration, in line with Nobu's 30th anniversary, expands as Nobu announces new ventures in Toronto, Bangkok, Abu Dhabi, Saint Tropez, and more. Chef Nobu and Chris see a growing fusion between fashion and the culinary world, enhancing the dining experience and sparking new trends.

🏨 Radisson Hotel Group grew globally in H1 2024 with over 130 new signings and openings in EMEA and APAC. Radisson RED entered Ireland, New Zealand, Thailand, Laos, and China, nearing 90 hotels worldwide. The Radisson Collection and Radisson Blu brands expanded too, with 20 new Radisson Blu hotels. Key developments include the first Radisson Collection near the Louvre in Paris, a 10th hotel in Riyadh, and the art'otel Hoxton in London. In China, Radisson added over 5,000 rooms, contributing to its 400-property portfolio. India saw about 25 hotel signings/openings, including the country's first Cricket Stadium Hotel. Radisson's EMEA portfolio includes 520 operational hotels, and in APAC, 290; overall, Radisson operates and develops over 1,380 hotels with more than 227,310 rooms in over 95 countries.