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ELECTRIC VEHICLE CHARGING points are becoming a standard amenity at hotels, akin to the rise of Wi-Fi in the early 2000s. Benefits for the hotel owners and franchisers can include additional revenue, carbon credits as well as attracting guests from the growing number of electric vehicle drivers. A 2022 Green Lodging survey by the American Hotel and Lodging Association revealed a surge in the deployment of EV chargers within the hospitality sector, with 26.6 percent of all U.S. hotels equipped with charging stations. The EV charging facilities are more commonly found at luxury hotels (nearly 90 percent offer them), while only about one in five limited-service hotels provides charging, representing significant growth opportunities. Hotel brands such as Hilton Hotels & Resorts, Marriott International, BWH Hotel Group, IHG Hotels & Resorts, Choice Hotels International, Hyatt Hotel Corp. and G6 Hospitality have prioritized deploying EV charging based on customer preferences. Their franchisees have begun incorporating EV charging infrastructures into their properties. "We've heard from our owners that offering EV charging solutions is increasingly influential for guests when choosing hotels," said Brian McGuiness, IHG's senior vice president of global guest experience. "This is backed by our observation of guests using EVC filters on the IHG One Rewards mobile app and website. Our integrated EV-charger search filter within the IHG One Rewards mobile app allows travelers to easily find properties with EV charging capabilities, empowering them to plan their journeys conveniently and confidently."

HOTEL WEBSITES LED all booking sources in revenue per booking in 2024, generating an average of $519, 60 percent higher than other channels, according to SiteMinder. Furthermore, the largest volume of hotel reservations from a single technology platform rose 8.5 percent year-over-year, with a value-per-booking 60 percent higher than OTAs at $320. SiteMinder's Hotel Booking Trends report, based on more than 125 million reservations, found the figure was 35 percent higher than global distribution systems at $380 and 15 percent higher than wholesalers, DMCs and tour operators combined at $446. Direct booking value rose year-over-year, with hotel websites holding or improving their position among top revenue sources in all major travel destinations for the first time. In the U.S., hotel websites remained the third-highest revenue-generating channel.

HOTELS STRUGGLED WITH rising costs outpacing revenue growth in 2024, hindering economic growth and job creation, according to American Hotel & Lodging Association's 2025 State of the Industry report. Despite these challenges, opportunities remain, driven by guest spending trends, shifting traveler behaviors, and major upcoming events. The report, published with Accenture, found property costs outpacing revenue, with operations, maintenance, sales, marketing, and IT expenses rising nearly 5 percent in 2024, adding to hotel industry challenges. "America's small business hotel owners have been struggling as rising costs, compounded by high inflation and interest rates, make it difficult to stay open and serve guests," said Rosanna Maietta, AHLA's president and CEO. "That's why we will be focused on promoting policies that help our members overcome these challenges so they can focus on what they do best-creating pathways for their employees to find lasting careers and creating unforgettable experiences for their guests."

TOTAL EXTENDED-STAY HOTELS achieved new fourth-quarter milestones in 2023, setting records in supply, demand, ADR, RevPAR, and room revenues, according to The Highland Group. Despite this, occupancy declined alongside the broader hotel industry trend, with slower growth in ADR and RevPAR throughout the year. Consequently, extended-stay hotel RevPAR experienced its smallest fourth quarter increase since 2019, excluding contractionary periods. Extended-stay hotel supply growth increased marginally in 2023 but remained very low, the report said. The last time supply growth consistently hovered around its current level was from the fourth quarter of 2010 through the third quarter of 2014. Throughout this period, supply increases stayed below their long-term historical average for 20 consecutive quarters, while the federal funds rate was about 10 times higher than its current level. With interest rates and construction costs expected to stay relatively high, the risk of extended stay hotel oversupply nationally is low in the near term, despite the launch of several new brands, The Highland Group said.

U.S. EXTENDED-STAY HOTELS ended 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the overall industry, according to The Highland Group. However, ADR and RevPAR growth lagged yet stayed positive, with stronger gains in the latter half. The Highland Group's report on the U.S. Extended-Stay Hotel Market 2025 found that although below the long-term average, extended-stay supply growth in 2024 was the highest since 2021 and is set to accelerate over the next one to three years. "Fundamental differences, such as far higher interest rates and real construction costs, exist between the current and most recent extended-stay hotel growth cycles, but a substantial increase in room revenues remains likely over the next one to three years," said Mark Skinner, The Highland Group's partner.

EXTENDED-STAY ROOM revenue rose 3.4 percent in the first half of 2024 and 5.1 percent in the second quarter, while occupancy decreased 0.2 percent in the first half but increased 1 percent during the second quarter, according to The Highland Group. The second quarter also saw the highest quarterly RevPAR increase in a year, an 11-point occupancy premium over all hotels and the most rooms under construction in four years. The 2024 mid-year U.S. extended-stay Lodging Market report found that all three extended-stay hotel segments reported record-high room revenues in the first half and for the second quarter. Revenue growth in extended-stay hotels is accelerating in 2024, with the second quarter's increase more than three times that of the first quarter, the report said. The 5.1 percent revenue increase in the second quarter significantly outpaces the 3 percent gain reported for the overall hotel industry by STR/CoStar. "Despite headline grabbing large increases in extended-stay rooms under construction, the annualized increase in room nights available over the next year should be well below the long-term average and the near-term risk of over supply nationally is very low," said Mark Skinner, The Highland Group's partner.

ANNUAL CHANGES IN U.S. hotel utility costs and in the Consumer Price Index, or inflation, have historically proven to be strongly correlated. As of August 2022, CBRE is forecasting CPI growth to be 7.7 percent in 2022, followed by another 3.6 percent in 2023. Since inflation has averaged just 2.2 percent since 2000, these inflation projections have hoteliers concerned about operating costs. Given that rising energy costs are a significant driver of the current rise in CPI, hotel managers are especially worried about utility department expenses. Over the past 50 years, utility department expenses have averaged between 3 and 4 percent of total revenue, indicating that hotel managers have been successfully controlling energy costs in the face of fluctuating business volumes. This is particularly commendable given the highly fixed nature of utility expenses. To provide some context to the current challenging environment, we studied recent trends in hotel utility department expenses. The data come from a sample of more than 2,800 U.S. hotels that reported utility department expenses each year from 2015 through 2021 for CBRE's annual "Trends in the Hotel Industry" survey. In 2021 the properties in the sample averaged 209 rooms in size, with an annual occupancy rate of 54.2 percent and an average daily rate of $152.70.

U.S. EXTENDED-STAY HOTELS showed positive growth in April after a difficult first quarter, according to The Highland Group. Monthly room revenue growth was the highest in nearly a year, demand saw its strongest increase in 16 months, and ADR and RevPAR turned positive after two and four months of decline, respectively. "The performance of extended-stay hotels in April re-established the segment's long-term trend of increasing its market share of total hotel supply, demand and room revenues," said Mark Skinner, partner at The Highland Group. The extended-stay room supply grew 2.8 percent in April, slightly above the average monthly increase over the last two years, the report said. However, April marked 31 consecutive months of 4 percent or less supply growth, with annual supply change under 2 percent for two years-both metrics well below the long-term average.

IHG HOTELS & RESORTS reported global RevPAR growth of 3 percent for 2024 and 4.6 percent in the fourth quarter, with the Americas rising 2.5 percent and 4.6 percent for the year and quarter, respectively. The company acquired Germany-based lifestyle hotel brand Ruby for about $116 million, aiming for global expansion, including the Americas. It opened 371 hotels globally in 2024, up 24 percent, and added 714 to the pipeline, a 34 percent increase, including 16,832 rooms opened and 26,552 signed in the Americas, IHG said in a statement. "Thanks to the hard work and dedication of our teams around the world, 2024 was an excellent year of financial performance, strong growth and important progress against a clear strategy that is unlocking the full potential of our business for all stakeholders," said Elie Maalouf, IHG's CEO. "RevPAR growth accelerated in the fourth quarter, reflecting the breadth of our global footprint and improvements in all three regions. Together with strong system growth, notable margin expansion and the benefit of returning surplus capital through buybacks, we're pleased to report adjusted EPS growth for the year of 15 percent."

EXTENDED-STAY HOTELS DISPLAYED varied performance in December compared to the overall hotel industry, with supply, demand, and room revenues showing relative gains, according to The Highland Group. Occupancy experienced a milder decline than the broader hotel sector while low ADR growth and an unexpected decline in economy extended-stay RevPAR resulted in a total extended-stay hotel RevPAR decrease versus a slight RevPAR increase in the overall hotel industry. The 2.4 percent net increase in extended-stay room supply in December represents a modest rise compared to the average over the past 18 months and a slight gain over the most recent three months, the report said. Supply shifts overview December marked nine consecutive quarters with 4 percent or less supply growth, significantly below the long-term average, according to The Highland report. The 13 percent surge in economy extended-stay supply and the reduction in mid-price segment rooms are primarily attributed to conversions, with new construction in the economy segment accounting for approximately 3 percent of rooms compared to a year ago.

U.S. HOTEL BOOKINGS for Dec. 21-25 are up 22 percent from last year, according to SiteMinder, a hotel distribution and revenue platform. The growth is driven by international bookings, which now account for 32 percent of total bookings, up from 28 percent during the same period in 2023, a more than 15 percent annual increase. The top five markets driving this growth are Canada, Germany, the UK, France, and Italy, SiteMinder data showed. "It's pleasing to see that U.S. hotels will be enjoying their share of Christmas cheer this year," said Trent Innes, SiteMinder's chief growth officer. "Increased bookings, driven by the strong return of international travel and continued confidence among domestic travelers, are also leading to longer stays and extended lead times. These positive trends present both an opportunity and a call to action for American hoteliers to provide tailored, seamless experiences this festive season, maximizing revenue while fostering loyalty and positive reviews."

CHOICE HOTELS INTERNATIONAL reported improved performance for Country Inn & Suites by Radisson following its integration with Radisson Hotels Americas. The brand saw a 19-point RevPAR Index increase, a 20 percent rise in direct online contribution and year-over-year revenue growth from group and business travelers. Radisson Americas brands have seen increased digital traffic and higher booking conversions, driving new hotel commitments, including 38 Country Inn & Suites additions in two years, Choice said in a statement. "Country Inn & Suites by Radisson has performed well above the goals we set out for the brand when it joined the Choice family of brands two years ago," said Judd Wadholm, Choice Hotels' senior vice president and general manager for upper-midscale, midscale, and economy brands. "We are committed to a long-term strategy to give this brand an even stronger edge in the competitive upper-midscale segment and to unlock additional channels for our owners to help grow their revenue."

WYNDHAM HOTELS & RESORTS reported growth in net rooms and its development pipeline for the third quarter. Global systemwide rooms increased 4 percent year-over-year, with 1 percent growth in the U.S. and 8 percent internationally. Global RevPAR rose 1 percent in constant currency compared to 2023, with a 1 percent decline in the U.S. and 7 percent growth internationally. The company's adjusted net income for the third quarter was $110 million, a 1 percent decrease year-over-year but a 3 percent increase on a comparable basis, Wyndham said in a statement. "Our teams delivered exceptional results, executing our growth strategy and achieving 7 percent growth in comparable adjusted EBITDA, driven by system expansion, higher royalty rates, and increased ancillary revenues," said Geoff Ballotti, president/CEO. "We awarded 10 percent more franchise contracts domestically, driving 5 percent growth in our development pipeline. Stabilizing RevPAR trends and increasing infrastructure demand are expected to lead to improved results in the coming quarters. We remain focused on delivering value to our guests, franchisees, and shareholders, having returned nearly $380 million year-to-date through dividends and share repurchases."

Today's hoteliers face new challenges. IBIS World reports that there are now over 100,000 hotels and motels across the United States-meaning that the competition is greater than ever before. Further, the cost of delivering a unique and exciting guest experience continues to rise in tandem with the cost of hotel operations. So, hoteliers are tasked with finding sources of revenue beyond bookings. That's where new technology comes in. AAHOA owners can harness the power of technology to address modern challenges, so you'll be better positioned for success-no matter what the future holds. Start unlocking new revenue streams today According to a report by Oracle and Skift, nearly half of executives expect non-room revenue to account for an increasing share of their hotel's revenue by 2025. In-room TVs are a great way to drive non-room revenue-today and tomorrow. With new technology, you can use screen space to promote any paid amenities such as room service, spa services, on-site casinos, and more.You can also sell paid on-screen advertisements to local establishments like restaurants, amusement parks, or museums. There are even opportunities to promote larger affiliate partners and collect extra income when you refer guests.

THE U.S. HOTEL construction pipeline continued its growth at the end of the second quarter of 2022 as travel returned, according to Lodging Econometrics. The upscale and upper-midscale segments continue to lead the pipeline with 68 percent of projects. The total U.S. construction pipeline stands at 5,220 projects with 621,268 rooms during the second quarter. That is up 9 percent by projects and 4 percent by rooms, over the same period last year, according to the U.S. Construction Pipeline Trend Report from LE. There were 965 projects with 130,914 rooms currently under construction in the second quarter, down 17 percent by projects and 18 percent by rooms, year-over-year. As many as 2,009 projects with 232,163 rooms are scheduled to start in the next 12 months, up 9 percent by projects and 9 percent by rooms, over last year. According to the report, projects and rooms in early planning reached a record high at 2,246 projects with 258,191 rooms, up 26 percent by projects and 15 percent by rooms, compared to last year. "Improved demand and increased consumer sentiment and spending has led to record-high rates of travel and much improved hotel revenue over the last few months. The outlook for the industry is positive and growth is expected to continue throughout 2022, albeit at a decelerated pace than initially expected. The industry's ability to adapt to the constantly changing economic environment provides a positive outlook for hotel performance, and its eventual full recovery," the report said.

MARK HOPLAMAZIAN, PRESIDENT and CEO of Hyatt Hotels Corp., will join Greg Friedman, managing principal and CEO of Peachtree Group, for a fireside chat at the Hunter Hotel Investment Conference on March 19. Hunter introduced this format last year with Anthony Capuano, CEO of Marriott International, as the featured guest. In "A Conversation with Mark Hoplamazian," he will share insights on his hospitality career, leadership approach, Hyatt's market position, company outlook and industry developments, Hunter said in a statement. U.S. extended-stay hotels finished 2024 strong after a slow start, with supply, demand and room revenue growth outpacing the industry, while ADR and RevPAR remained positive but gained momentum later in the year, according to The Highland Group.​ "At Hyatt, business is personal-relationships, trust, and a deep understanding of our guests, customers, and owners are at the heart of everything we do," said Hoplamazian. "In today's competitive landscape, hotel performance is driven by the human connections that shape our industry. That's why we collaborate closely with owners and operators like Peachtree Group to create long-term value for their investments."

U.S. EXTENDED-STAY HOTELS room supply increased by 3.2 percent in May, slightly above the average monthly rise over the past two years, according to The Highland Group. May marked the 32nd consecutive month with supply growth at 4 percent or less, and the annual supply increase has been under 2 percent for two years. However, both metrics remain well below the long-term average. The 12.8 percent increase in economy extended-stay supply, along with smaller gains in mid-price and upscale segments, is primarily due to conversions, the report said. New construction in the economy segment accounts for only about 3 percent of rooms opened compared to a year ago.

U.S. HOTEL PERFORMANCE improved for the week ending March 1 compared to the previous week, according to CoStar. Occupancy and RevPAR increased week over week, while ADR saw a slight decline, but all three metrics showed year-over-year growth. Occupancy increased to 62.8 percent for the week ending March 1, up from 60.3 percent the previous week and 0.4 percentage points higher year over year. ADR declined slightly to $159.26 from $159.90 the prior week but remained 2.7 percent higher than the same week last year. RevPAR increased to $100.06 from $96.49, reflecting a 3.1 percent gain compared to the same period in 2023. Among the top 25 markets, St. Louis recorded the highest year-over-year occupancy gain, rising 12.1 percentage points to 59.4 percent.

U.S. EXTENDED-STAY ROOM supply increased by 3.3 percent in August, surpassing the average monthly growth over the past two years, according to The Highland Group. This rise is partly attributed to the inclusion of WaterWalk by Wyndham, a mid-price extended-stay brand, in the database starting in May after its affiliation with Wyndham. August also marked the 35th consecutive month of supply growth at 4 percent or less, with the annual supply change remaining below 2 percent for the past two years, as revealed in The Highland Group's U.S. Extended-Stay Hotels Bulletin. However, both metrics are well below the long-term average, the report found. The 11.9 percent increase in economy extended-stay supply, along with modest gains in mid-price and upscale segments, is primarily due to conversions. New construction in the economy segment is estimated at only 3 percent of rooms compared to last year, the report noted.

A STABLE ECONOMIC backdrop is expected to fuel a 10.7 percent year-over-year increase in the U.S. short-term rental industry in 2024, surpassing the 6.7 percent rise seen in 2023, according to AirDNA's 2024 outlook report. Moreover, AirDNA foresees balanced growth for the industry in 2024, marked by a projected 10.9 percent increase in supply expansion guided by rising demand for more sustainable market practices. "Approaching 2024, the industry anticipates balanced growth with a projected 10.9 percent increase in supply expansion," said Jamie Lane, senior vice president of Analytics at AirDNA. "Contrary to exaggerated reports of an STR 'collapse,' heightened market competition emphasizes the need for hosts and property managers to meticulously monitor data trends. This strategic approach is crucial for surpassing competitors and sustaining revenue, taking advantage of a strong economy and the growing preference of travelers for STR lodging."