Hotels are rapidly being recognized as an attractive business model for investors, due to its ability to respond to external environmental changes. Flexibility means profits can be made during a down economy and maximized in time of economic growth. Predicting the state of the global economy is anyone’s guess, but here are five key hotel trends to look out for in 2017:
Joining forces to achieve a common goal is a sure way to success. Collaborations mix often different and fantastic ideas together to welcome an innovative product or service. A look at the recent partnership with social media giant Linked-In and Accor Hotels in developing a Business Check app is a sure sign of more to come in this space.
- Hotels attracting investment from various industries:
Look out for more hotel investment from other industry investors in 2017. With the current rise of global tourist growth, it is no surprise that hotels are attracting investors who are traditionally not involved in the hospitality industry. An example of this is the Hermes-Sojitz Investment Fund (well known in the mining and metallurgy industries) that has invested in developing a boutique hotel chain of 12 properties in Northern Italy.
- ‘Well-known brand’ your hotel
Well-known brands and labels such as Verace, Armani, Missoni, Bulgari and Moschino are increasingly being used to name and distinguish hotels. Expect more announcements such as the one from Bulgari Hotels and Resorts in 2016, which will see the opening of the world’s 7th Bulgari Hotel in Moscow in 2019.
- Allow the BIG names in
Many of the world’s largest hotel groups such as Marriott, Accor, Hilton and InterContinental are closing deals with private hotel individuals or groups. Some benefits of this for the purchased hotel include brand alignment, maximizing on the group’s member rewards scheme and advertising exposure. In some cases, local hotel owners encourage investment into their hotel from big name brands, either to rescue or further develop their business. Expect more of the same in 2017, particularly in Africa.
- The rise of the boutique hotel
Today’s overnight traveler is looking for more than just a place to sleep and eat. It is no wonder then that the popularity of the boutique hotel is rising. Individuals in a boutique hotel usually do their very best in offering a uniquely tailored and luxurious experience to their guests. The concept of “the closer to home for the guest, the better” is indicative of this trend which we are bound to see more of in 2017.
(article source: TravelDailyNews.com)