Market Trends

🏢 In Q2 2024, the U.S. hotel construction pipeline hit a record with 6,095 projects and 713,151 rooms, a 9% and 8% YOY increase respectively. Under construction are 1,171 projects/147,611 rooms, up by 10% and 4% YOY. Projects to start in the next 12 months stand at 2,350, a 5% YOY increase. Early planning stages see 2,574 projects/297,162 rooms, up 13% and 15% YOY. Extended-stay projects comprise 36% under construction. The upper midscale (2,262 projects/219,547 rooms) and upscale (1,417 projects/175,343 rooms) scales dominate, accounting for 60% of total projects. In 2024's first half, 250 hotels with 29,777 rooms opened, with expectations for 650 hotels/74,228 rooms by year-end, a 35% increase from 2023's 480 hotels/60,922 rooms. Forecast for 2025 is 779 hotels/87,405 rooms, and for 2026, 928 projects/101,796 rooms, a 1.8% supply increase.

🍠 Summer squash, including zucchini, pattypan, and chayote, has grown in restaurant menu appearances by 38% over the past four years, now found on 1.4% of U.S. menus. 81% of U.S. consumers recognize summer squash, which stands out for its versatility in various dishes without adding excess moisture, according to Datassential market research.

🍔 Sahib Rana, CEO of Toronto-based Lazeez Shawarma, partnered with Revel Systems to implement a flexible, cloud-based POS across 61 locations, as highlighted at the MURTEC Executive Summit Canada on June 20 & 21 at the Sheraton Centre in Toronto. Established in 2013, Lazeez sought a scalable solution for rapid growth and enhanced guest experience. Revel's platform includes a Kitchen Display System (KDS), which improved efficiency by replacing paper tickets, and a Customer Display System (CDS) to ensure order accuracy and promote specials.

🌆 In the U.S., hotel industry performance from June 30-July 6, 2024, showed a decline with occupancy at 61.3% (↓0.9%), ADR at $157.27 (↑0.5%), and RevPAR at $96.35 (↓0.4%). New Orleans led with the highest year-over-year increases: occupancy up 15.5% to 56.6%, ADR up 35.1% to $197.23, and RevPAR up 56.1% to $111.72. St. Louis and Tampa had the steepest RevPAR declines, with St. Louis down 25.4% to $58.65 and Tampa down 13.5% to $100.65.

🏠 The Global Wellness Institute valued the wellness tourism sector at $651 billion in 2022, projected to reach $1.4 trillion by 2027. Wellness travellers spend significantly more per trip compared to other sectors. Hotels can capitalize on this growth by offering activities that promote a healthy mind and body without necessarily incurring high costs. Strategies include marketing existing wellness elements like gyms, leveraging local culture, offering food options for various dietary needs, and partnering with fitness and wellness instructors. MasterCard’s report highlighted a 65% increase in spending on experiences from 2019 to 2023, suggesting a shift towards experiential and wellness travel.

✈ Cloudbeds' 2024 State of Independent Lodging Report highlights experiential travel, inflation-busting travel hacks, and skill demands for hoteliers. Findings reveal 81% of travelers plan to maintain or increase travel in 2024, nearly 70% are likely to travel for concerts, and 47% of US travelers book destinations for specific restaurants. Over 50% would book a surprise trip. By 2027, 42% of business tasks to be automated. Currently, 91% of hotels use a PMS, 64% have a booking engine, and 33% utilize a channel manager.