In 2022, Singapore’s hotel market surged as travel restrictions eased, with US$899.7 million in transactions predominantly in the mid-market segment. The rise in visitor numbers and luxury openings, like The Singapore Edition and Raffles Sentosa Resort & Spa, drove significant growth. Despite labor shortages, the sector thrived with increased room rates and revenue, reflecting a strong rebound in the tourism industry.
Managing a hotel’s food and beverage (F&B) operations demands meticulous oversight to prevent financial leaks. Asset managers should focus on four critical areas: purchasing, sales, cash handling, and banqueting. By implementing clear procedures, maintaining rigorous checks, and regularly reviewing performance, hotels can turn their F&B operations into a robust profit center.
A chic Art-Deco restaurant in Brussels saw its profits plummet after six successful years. Through meticulous refurbishment planning, strategic marketing, and expert consultations, the restaurant tripled its profit within a year, showcasing the power of professional asset management.
The current battleground for major hotel chains has shifted from expanding pipelines to capturing loyalty members. While Marriott Bonvoy faces stiff competition from Hilton Honors, engagement, rather than size, is becoming the crucial factor. For owners, loyalty programs attract guests but come with complexities and additional costs. Historically, luxury hotels have relied on exceptional service to build genuine loyalty, independent of points programs, positioning themselves more like high-end consumer products. Balancing genuine loyalty with strategic programs remains a key challenge...
Before planning next year’s budget, it’s crucial to analyze the past year's performance. By understanding your position in the competitive landscape and leveraging collaboration opportunities, you can make informed financial decisions and maximize the success of your property.
The role of hotel asset managers is more critical than ever. They bridge the knowledge gap between owners and operators, act as the owner’s eyes and ears on the ground, and mediate conflicts to ensure the optimal performance and profitability of hotel properties. With their broad expertise and big-picture thinking, hotel asset managers provide indispensable support in the complex and volatile hospitality market.
Many hotel investments fail due to preventable mistakes. From choosing the wrong team to overlooking market cycles, poor location choices, and inadequate reserves, these pitfalls can be avoided. This guide highlights the top reasons for failure and offers insights to help investors succeed in the competitive hospitality industry.
The UK hospitality sector has seen the highest number of insolvencies in the past year, accounting for 16% of all company failures. Oliver Collinge from PKF Littlejohn Advisory attributes this to ongoing high costs, persistent energy price hikes, and recent poor weather, urging businesses to seek early advice to navigate these challenges.
As central banks around the world begin rolling out digital currencies, the travel industry faces a pivotal challenge. While cryptocurrencies have seen volatile highs and lows, central bank digital currencies (CBDCs) offer a stable, government-backed alternative. The sector must adapt its payment infrastructure and strategies to accommodate these emerging digital assets.
Visitor registration for the Independent Hotel Show London is now open. Held on October 15-16 at Olympia London, this premier event will bring together hotel owners, general managers, designers, and senior hospitality professionals. The theme "Beyond the Hustle and Bustle" will guide the seminar programs and networking opportunities, showcasing innovations and trends that will shape the future of independent hotels. Secure your ticket today to be part of this transformative event.
As traveler expectations evolve, leveraging technology to maximize every square foot of your hotel is essential. Beyond traditional room occupancy, hotels must reimagine spaces to boost profitability and guest satisfaction. By embracing modern tech and innovative space usage, hoteliers can transform underutilized areas into revenue-generating opportunities, enhancing the overall guest experience and ensuring long-term success.
Outdated technology can hinder a hotel's ability to deliver exceptional guest experiences and maximize revenue. Investing in state-of-the-art solutions ensures streamlined operations, enhances personalization, and supports long-term growth. Embracing these technologies can help hoteliers stay competitive in today's dynamic market.
Verifiable credentials and digital identity wallets are set to revolutionize travel, empowering travelers with more control over their personal data and enabling suppliers to offer personalized, efficient services. Driven by government initiatives and technological advancements, these innovations promise a seamless, secure travel experience, reducing friction and enhancing personalization across the journey.
The technology sector's rapid evolution is reshaping the travel experience. From biometrics providing seamless airport journeys to generative AI offering personalized travel planning, the industry is leveraging innovation to meet travelers' evolving expectations. The shift to public cloud and modular technology is enabling faster, more reliable service, ensuring that travel is more efficient and customer-focused than ever before.
Amazon's recent Prime Day travel deals, featuring big names like Carnival Cruise Line and Southwest Airlines, have sparked speculation about its future in the travel industry. While experts highlight Amazon's potential, many remain skeptical due to the complexity of the travel sector and Amazon's past failures. However, some brands see promise in Amazon's vast customer base and distribution capabilities.
Booking.com's recent decision to discontinue prepayment policies for some partners is reshaping hotel revenue management. Previously, prepayment rates with no refunds or cancellations helped attract budget-conscious customers and ensured steady cash flow. Now, Booking.com will hold prepayment funds, gaining interest and control, while hotels may face increased cancellations and less predictability. This shift highlights the need for hotels to strengthen direct booking strategies, invest in technology, and re-evaluate rate parity agreements to maintain competitiveness and profitability.
Former Airbnb employees have launched Bigfoot, an AI-powered app that helps travelers discover local activities and experiences. Bigfoot uses generative AI and data from over 50 sources to recommend events, restaurants, bars, and more across 160 cities. The app includes a personalized messaging platform, Littlefoot, for customized event suggestions.
With a significant volume of loans maturing this year, transactions in the hotel sector are set to rise in 2024. According to Savills, investment volumes for European hotels are expected to exceed 2023's numbers, with over €1 billion in UK hotel assets already transacted. Investors are particularly eyeing lifestyle hotels, mid-market hotels, and serviced apartments.
CDL Hospitality Trusts is set to launch The Castings, a lifestyle BTR community in Manchester. This marks the group's first residential venture, blending hotel-level services with affordable long-term living, reflecting the rising demand for elevated living experiences.
Former Airbnb employees have launched Bigfoot, an AI-powered app that helps travelers discover local activities and experiences. Bigfoot uses generative AI and data from over 50 sources to recommend events, restaurants, bars, and more across 160 cities. The app includes a personalized messaging platform, Littlefoot, for customized event suggestions.
