What are the common trends in the hotel industry in 2024?
Based upon industry analysis and the Q1 2024 earnings reports from Marriott Hotels, Hilton, IHG Hotels & Resorts, and Hyatt Hotels Corporation, there are several common trends and insights about the hotel industry in 2024:
1️⃣ RevPAR Growth
All major hotel companies reported year-over-year increases in revenue per available room (RevPAR) for Q1 2024, ranging from around 4-6% globally.
2️⃣ Robust Development Pipelines
All these major hotel chains highlighted sizeable development pipelines, with Marriott at nearly 547,000 rooms, Hilton at 462,400 rooms, IHG at 314,000 rooms, and Hyatt at a record 129,000 rooms.
3️⃣ Stronger International Market Performance
Markets outside the U.S., especially Asia Pacific, showed stronger RevPAR gains compared to the domestic Americas region for most companies. The rebound in international travel is driving this trend.
4️⃣ Exclusive Brand Partnerships
Hilton announced a new exclusive partnership with Small Luxury Hotels of the World during its earning call. This announcement follows the acquisition of Mr and Mrs Smith by Hyatt Hotels last summer.
5️⃣ Technology Investments
The earnings reports have not explicitly covered technology investments, but industry reports have highlighted increased investments into AI, automation, and personalisation technologies to help enhance operations and guest experiences.
KEY TAKE-AWAYS:
➡️ Ongoing recovery and strength in travel demand
➡️ Confidence in future growth prospects, which is fuelling hotel development projects
➡️ Emerging Markets (Asia Pacific) are seen as major drivers of growth and an opportunity to expand
➡️ New brand partnerships and/or acquisitions illustrate a shift in the hotel industry towards offering more unique, luxury, and experiential stays
➡️ Hotel groups are being coy about the details of their technology investments, perhaps to gain short-term market share advantage over their competitors, but proper validation is required to ensure solutions fit with each hotels groups individual needs.
SUMMARY
The hotel industry is currently characterised by continued recovery and buoyancy, significant development activity, growing international markets, asset-light strategies by major brands, strong capital returns to shareholders, and an increased need for technology adoption.
For hotels, this is a good time to invest in technologies that will help drive gains across areas such as operations, marketing, and sales to improve profitability.
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Co-Founder @ Turneo | Helping great hotels offer incredible in-destination experiences to their guests
9moFully agree with Maud here! In all our luxury hotel clients, we see guests booking experiences digitally where they can, and reaching out to concierges for help when they want additional information or have specific questions. And concierges love using our Concierge Tool to book guests onto incredible experiences without the need to manually call or confirm every single booking. Technology-enabled, people-led is the way forward in luxury hospitality.