Market Trends

🏨 Global Construction Pipeline reached record 15,453 projects with 2,395,726 rooms, up 6% and 4% YOY respectively. Projects under construction hit 6,265 (up 2% YOY) with 1,115,989 rooms (up 1% YOY). In the next 12 months, 3,972 projects/545,764 rooms to start (up 8% YOY); early planning stages saw 5,216 projects/733,973 rooms (up 10% YOY). Upper midscale, upscale, and midscale make up 65% of pipeline; luxury up 13% YOY. Top countries: USA (6,095 projects/713,151 rooms), China (3,815 projects/699,786 rooms), India, Canada, and Saudi Arabia. Top cities: Dallas (189 projects/22,392 rooms), Atlanta (159 projects/18,522 rooms), Chengdu. In H1 2024, 948 hotels/135,579 rooms opened, with a forecast of 2,534 hotels/372,686 rooms in 2024, 2,756 hotels/429,120 rooms in 2025, and 2,812 hotels/430,355 rooms in 2026.

🏨 U.S. hotel industry reports mixed year-over-year data as of August 17, 2024. Nationwide, occupancy slightly decreased by 0.2% to 66.9%, whereas average daily rate (ADR) rose by 1.0% to $156.35, and revenue per available room (RevPAR) increased by 0.9% to $104.54. Houston led with the highest increases: occupancy up 34.3% to 75.3%, ADR up 14.5% to $121.89, and RevPAR up 53.8% to $91.73. In contrast, San Francisco and Atlanta faced the steepest RevPAR declines of 13.8% and 11.3%, reaching $143.39 and $69.43, respectively.

🏠 YSG Studio renovated a seaside home in Byron Bay, Australia, with retro 1970s-inspired interiors. YSG director Yasmine Saleh Ghoniem designed period details like a sunken lounge, chrome additions, and a geometric patterned floor titled Checkmate. The kitchen was doubled in size, featuring a wooden screen and circular island. Vintage Italian dining chairs were reupholstered in chartreuse velvet, and terracotta pavers were laid in a grid pattern in living areas. Custom and vintage furniture pieces, including a Cassina Soriana chair, adorn the home.

🏩 Ernest Lee, Chief Commercial Officer at citizenM, highlights the significance of partnerships and collaborations in a podcast episode dated August 23, 2024. He discusses citizenM's approach to creating unique experiences, engaging target audiences, and leveraging resources efficiently. Lee also details a partnership with Yes Theory, a content creation team with nine million YouTube subscribers, showcasing the alignment with citizenM's brand mission. The episode is supported by Sojern, emphasizing the importance of building profitable guest relationships.

🏢 Isaure Yeodet, a French Master’s student at Glion London, participated in a week-long field trip to Switzerland as part of her studies in Real Estate, Finance and Hotel Development. The trip focused on hands-on learning and included meetings with industry professionals and alumni. Students acted as consultants, investigating issues at each hotel and presenting solutions to general managers. They explored sustainable practices, such as W Verbier’s on-request housekeeping service, and gained insights into hotel consulting careers.

📊 July 2024: 123Compare.me released the World Parity Monitor report. Major OTAs like Expedia Group and Booking.com show stable or improved direct price parity. Minor OTA Reserving experienced a 5-point increase in price disparities. A 1.5% shift to ‘Beat’ cases in total disparity occurred, continuing June's 4-point positive parity trend. Long-term bookings are doing better in ‘Beat’ category. Palma de Mallorca gained 10 points, and Frankfurt am Main increased by 12 points in ‘Beat’ performance, indicating better price distribution management. Overall destination performance remains stable.

🏨 Aligned Hospitality Management, founded in 2021, recently acquired its 26th property, the Holiday Inn Express & Suites Globe in Globe, Arizona. The Tucson-based company, led by CEO Bryan Tubaugh and President Helinda Lizarraga, has exceeded its 10-year expansion plan in just three years. Initially focused on properties in Colorado and Arizona, they expanded into California with the M Solvang Gardens. The team's growth has been fueled largely by word of mouth and is known for a hands-on operational approach, emphasizing line-level experience. The portfolio is diverse, including the 204-key DoubleTree, with future growth targeting midscale, upper midscale, and boutique properties, potentially moving towards larger portfolio deals and acquisitions within the next five years.

🏨 The U.S. and China dominate the global hotel construction pipeline, contributing 64% with the U.S. having 6,095 projects/713,151 rooms and China 3,815 projects/699,786 rooms as of Q2 2024. A record 15,453 hotel projects and 2,395,726 rooms reported worldwide, with 6,265 projects/1,115,989 rooms currently under construction. New hotel openings are slated to reach 2,534 in 2023, 2,756 in 2025, and 2,812 in 2026. Dallas, Atlanta, Chengdu, Shanghai, and Inland Empire, Calif. lead in city pipelines. Upper midscale projects total 4,540/585,688 rooms, upscale 3,688/634,050 rooms, and luxury segment projects up 13% YOY with 1,066/214,270 rooms.