Hotels are eating real estate
More properties can incorporate hospitality to meet evolving needs of occupants and visitors.
Good morning. Trying something a little different today. I can’t find a good roundup of the stories that matter in hospitality each day, so I’m going to see if I can do this for you here. Take a look and then reply and let me know if this is useful for you - or if you’d like another format.
Josiah Mackenzie, Publisher
“Hotels Are Eating Real Estate”
Credit: Allen Morris
What’s going on: The popularity of mixed-use real estate has been on the rise for some time, seamlessly blending residential, commercial, and leisure uses within a property. As urban areas become more densely populated and the distinction between work and recreation blurs, this model has gained even more appeal. Hospitality brands have emerged as trailblazers in this evolution, showing how services and amenities can be integrated.
Why it matters: The opportunity for hospitality might be bigger than many think.
In their words: “As software eats the world, so service will eat physical spaces and there will no longer be a difference between residential and commercial real estate.” - Richard Valtr, Founder, Mews
ON OUR PODCAST TODAY
The story behind “Where Passionate People Thrive”
with Sloan Dean, CEO of Remington Hotels
In today’s podcast episode, Remington Hotels CEO Sloan Dean shares the story behind turning around the culture of the company and creating its "Where Passionate People Thrive" employer brand.
TOGETHER WITH HOTELOPERATIONS.COM
AI for Hotels: A Guide to Artificial Intelligence for Hospitality Leaders
Artificial Intelligence (AI) is advancing at breakneck speed, and the latest guide from Hotel Operations summarizes all you need to know - and what you can do now to prepare.
Guest Satisfaction Surges, With Hotel Amenities Leading The Way
What’s going on: Wanderlust is not the only thing that people are giving in to again; they are also relishing all the amenities that come with it. The American Customer Satisfaction Index (ACSI®) Travel Study 2022-2023 reveals that satisfaction levels have risen across all four sectors measured - airlines, hotels, car rentals, and online travel agencies. Hotels are leading the pack.
Why it matters: Higher guest satisfaction means higher pricing power. The fact that satisfaction is being driven by amenities that don’t have to cost much is encouraging for operators and investors.
In their words: “After two years of decline, a sweeping surge in guest satisfaction with hotels could signal that the industry is moving past the pandemic. Concurrent with a wave of pent-up demand, the positive momentum is widespread as all hoteliers increase satisfaction year over year.”- Forrest Morgeson, Director of Research Emeritus at the ACSI.
FOOD & BEVERAGE
Hotels Grab Opportunity for F&B Profits, Guest Satisfaction Through ‘To Go’ Markets
What’s going on: As hotels continue to move away from traditional full-service food & beverage outlets in the wake of the pandemic, Grab & Go markets or food pantries have emerged as the ‘go-to’ for today’s guests.
Why it matters: Adding options for guests can make you more money - and increase their satisfaction.
In their words: “I think a lot of it is really due to guests not wanting a formal experience and being able to control when and where they’re eating. We see a lot of people going to the Grab & Go in our resorts and then just heading to the beach or heading to a relaxing area.” - Richard Garcia, SVP F&B, Remington Hotels
How changing corporate travel demand is reshaping hotels
What’s going on: Corporate travel is undergoing significant changes, and hotels are adapting to meet evolving demands. Shifts in traveler preferences, such as increased remote working, more extended stays, and a focus on health and wellness, are pushing hotels to enhance their offerings.
Why it matters: Understanding and adapting to the changing corporate travel preferences is crucial for maximizing revenue today.
In their words: “While the overall quantity of business trips has dropped off significantly since Covid, today’s business travel is about fewer but longer and more purposeful trips.” - Saskia Gentil, SVP of Sales, Accor
How Hotel Brands Are Using First-Party Data to Drive Revenue & Build Stronger Relationships
What’s going on: Sojern partnered with Benchmark Research Partners to survey hotel marketers about their first-party data strategies.
Why it matters: Hotel marketers today use the online and offline first-party data they have to attract new guests, retain existing ones, and build loyalty. This data helps them understand guest behavior, enhance the accuracy of campaign targeting, predict future behavior, and more. First-party data is a hotel marketer’s most valuable asset and core to a data-driven marketing strategy.
In their words: "There are so many benefits that first-party data provides hotels today. Consumers are being fed so much information through so many different channels. First-party data gives you the opportunity to tailor messaging for each cohort of consumers and provide a very personalized experience. That is the goal of collecting and leveraging this data.” - Jay Hubbs, VP of Marketing, Advertising, Analytics, and Innovation at BWH Hotel Group
Revitalizing Midtown Manhattan: Rockefeller Center's New Luxury Hotel Deal
What’s going on: Rockefeller Center is preparing to open its first hotel, the latest sign that Midtown Manhattan’s largest office landlords are leaning into hospitality and entertainment as remote work reduces demand for office space.
Why it matters: Hospitality could have a bigger role to play in today’s quickly changing economy.
In their words: “It’s not a business hotel, it’s not a resort hotel. Like how the world has gone, it has hybrid components.” - Paula Crown, owner
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