TOP NEWS

🏨 Global hotel rates in 2025 are expected to rise moderately, less than in previous years, due to decreased leisure travel demand and increased hotel construction, as reported by Amex GBT's Hotel Monitor 2025. New York faces higher rate hikes compared to North America because of restrictions on short-term rentals. The Nordics may see Europe's highest rate increases, while India's growing economy drives up prices. Global inflation is projected to decrease, but hotel rates stay high due to labor shortages and rising wages. The US, China, India, Canada, and Saudi Arabia are seeing a construction boom. Technology, including AI and smart rooms, is addressing labor issues and enhancing guest experiences. Demand is growing for personalized rooms with custom features and sustainability practices, while extended-stay properties become more popular in Asia.

💸 In Metroville, The Imperial Hotel and Hotel Solstice differ in management styles, affecting their success. Mr. Edward Thompson, an authoritarian general manager, stifles innovation at The Imperial Hotel, resulting in declining occupancy, negative reputation, and financial losses. In contrast, Ms. Elena Rivera at Hotel Solstice embraces innovation, leading to a 20% annual revenue increase and market leadership within a year. Leadership style is crucial for hotel success, impacting revenue growth, staff morale, and competitiveness.

🏠 Marc Benioff, CEO of Salesforce, is excited about the company's AI platform Agentforce, predicting over a billion AI agents on it within 12 months. At Dreamforce 2024, 10,000 customers tested the platform, which is poised to revolutionize industries by automating complex tasks and enhancing customer experiences. Salesforce contrasts its AI with Microsoft's Copilot, likening it to the unhelpful Clippy. AI is expected to disrupt traditional OTA models, with companies like Equeco growing rapidly in the travel industry by managing PPC campaigns for brands from Blablacar to Marriott. Debate continues over Uber’s potential acquisition of Expedia, with Chamath Palihapitiya dismissing it as "stupid" due to AI and direct booking threats. Meanwhile, Peter Syme suggests OTAs will grow but decline in value as AI agents transform travel booking, prompting them to adopt defensive strategies.

🏨 Hilton's global RevPAR increased by 1.4% in Q3 compared to the previous year. Chris Nassetta, CEO, remains optimistic about growth despite a challenging environment for new hotel construction. In Q3, 60% of Hilton's openings were conversions, with 20 Spark brand openings in the U.S., U.K., and Canada, and planned expansions to Germany and Austria. Hilton's net unit growth reached a record 7.8% as of September 30, 2023, with 36,600 rooms added. Construction starts rose by 21%, and Hilton leads with over 20% of the industry's rooms under construction. Group RevPAR increased more than 5% year over year, with a full-year group position up 10%. Hilton's 2025 EBITDA target is $3.69 billion with RevPAR growth of 1-2%. Around 55% of Hilton's pipeline is outside the U.S., and despite China's economic concerns, Nassetta is positive about the country's performance.

🍴 The American Hotel & Lodging Association (AHLA) and World Wildlife Fund (WWF) updated the Hotel Kitchen platform to aid U.S. hoteliers in food waste prevention, with a 2030 goal to cut food waste by half. Since its March 2017 launch, over 36,000 hotel staff have been trained, resulting in a 17-38% reduction in food waste at pilot properties. Enhancements include new guidelines, quicker resource access, and improved online training with Lobster Ink. These efforts are part of AHLA's Responsible Stay initiative, promoting sustainability in the hotel industry.

💰 Hilton Worldwide Holdings Inc. reported $344 million net income and $904 million adjusted EBITDA for Q3 2024. Diluted EPS stood at $1.38, adjusted EPS at $1.92. Q3 saw 1.4% system-wide comparable RevPAR increase and the addition of 36,600 rooms, achieving a net unit growth of 7.8%. Their development pipeline reached 492,400 rooms, marking an 8% growth. Hilton repurchased 3.3 million shares and projects full-year 2024 system-wide RevPAR growth of 2.0% to 2.5%, with net income between $1,405 million and $1,429 million. Full-year capital return is estimated at $3.0 billion.

🏠 Choice Hotels International celebrated the opening of its 500th extended-stay hotel, the Everhome Suites in Glendale, Arizona, marking a milestone for the brand developed in 2020. By the end of Q2 2024, Choice had nearly 400 hotels in the pipeline across its extended-stay brands, leading in the economy new construction category per August 2024 STR Pipeline Data. The Everhome Suites Glendale has 122 rooms and has experienced a sellout within four weeks of opening. Furthermore, Choice anticipates the WoodSpring Suites brand will reach 300 hotels in 12-18 months, with a forecast of 25 openings by year-end. Additionally, between January 1 and September 2024, 13 new MainStay Suites and Suburban Studios opened in various U.S. markets.

🏨 The Hotels Network hosted GROW in Barcelona for hoteliers from Southern Europe to discuss direct booking strategies over two days. Sessions included "Creative Resonance" by founder Juanjo Rodriguez, interactive panels, and a showcase of AI receptionist KITT. Networking and collaboration were key, with future events planned for Cancun and Stockholm. Attendees gained insights into leveraging technology and AI for their direct channels.