Market Trends

🏨 Béatrice Guedj at the Hospitality Operator Forum highlighted that European hospitality has become a top asset for investors due to its solid fundamentals and strategic repositioning. From 2013 to 2020, it surpassed the Euro Stoxx 50, and since 2022, it's shown resilience, attracting US investors amid market volatility. Despite a drop in volume between 2021-2025, the sector remains stable, with hotel investments rising from 5-7% pre-pandemic to nearly 10% today.

📅 London’s MICE market is thriving in 2025, driven by corporate events, which make up 48% of the global MICE market. London's strategic location contributed to almost half of the UK's 42.5 million overseas visitors in 2024. Training and Education is the fastest-growing segment, with a 5% increase in training expenditure to $102.8 billion in 2024-2025. Hoteliers should focus on tech-enabled spaces and partnerships with educational bodies to leverage MICE opportunities.

🏖 2025 Winter Travel Index by Tripadvisor reveals 60% of travelers plan trips, with 45% traveling more than last year. 54% opt for stays of five nights or more, spending more despite economic concerns. Top destinations include New York City, London, Cancun, and Bangkok. Experiences are key, with 93% prioritizing them in their budgets. Generational travel varies, with younger groups focusing on activities and older generations on relaxation. Data sourced from over 6,123 survey respondents and Tripadvisor site traffic.

🏠 Singapore, 2026: WATG highlights five hospitality trends in the Asia Pacific. 60% of luxury travelers prioritize hotels with great restaurants, yielding up to 40% more positive reviews. Wellness strategies are pivotal, boosting average daily rates by 20–35%. Family travel is evolving, with kids influencing 67% of trip ideas. Luxury expands through unique experiences for 510,810 UHNW individuals globally. Repositioning resorts taps into Gen Z’s desire for culture and nature, potentially increasing value and sustainability.

📑 In the 2025 report released by the Penn State School of Hospitality Management, the representation of women in hotel leadership remains stagnant, with women holding 25% of C-suite roles, despite being 58.6% of the hospitality workforce in 2024. Black leadership fell from 2.2% in 2022 to 2.1%. Women and Black individuals comprised 50% of newly appointed directors, but low board turnover at 5.4% annually limits opportunities for diversification. The AHLA Foundation supported this research.

🏨 Jon Peck moderated a panel with Mike Woodward, Renee Bagshaw, and Rick Tomljenovic discussing the hotel industry at the 2025 Conference. RevPAR growth is projected at 1.5-2%, with operating expenses rising faster, affecting margins. Mid-scale extended stay properties offer development opportunities, though returns are challenged. Office conversions need government incentives, while renovations are driven by tariffs, supply chain issues, and financing costs. Traditional lending is tightening, and private credit is costly, complicating hotel investments.

📈 Veterans Day disrupted U.S. travel, impacting Revenue per Available Room (RevPAR) for the week ending 15 November, with a 4.6% decline due to a 2.6 percentage point drop in occupancy. The Top 25 Markets saw a 6.2% weekly RevPAR fall. New Orleans experienced a 31.2% decline due to conference shifts. Meanwhile, college football markets reported a 0.9% weekend RevPAR drop. Global RevPAR grew by 2.1% outside the U.S., with Canada and Germany seeing significant ADR declines.

🏨 Investors correctly assess the turbulent real estate market, where hotels outperform other assets. Despite strong demand, new hotel supply struggles due to high debt costs, scarce land, and strict zoning. Greenfield projects face competition from faster conversions. Success lies in mixed-use developments and political stability. The hotel industry needs cooperation with local authorities and clear rules. Hospitality, a key economic driver, offers jobs and social connection, especially as Europe and France reshape urban centers.

📖 In June 2025, the NYU International Hospitality Investment Forum in New York highlighted the rise in hotel loyalty memberships, reaching 675 million globally in 2024, with a 14.5% growth rate. Despite this, the increase reflects ease of enrollment rather than true brand loyalty. Factors like digital convenience and global travel expansion drive this trend. True loyalty stems from unique guest experiences, not enrollment numbers, as travelers increasingly prioritize brand experience over allegiance.