BREAKING INDUSTRY NEWS

Hotel Industry Seeing Positive Signs

• Hotels are doing better overall – Occupancy reached 60%, with room prices (ADR) up 2.2% and revenue per room (RevPAR) up 3.4% compared to last year.
• Chicago’s hotel occupancy jumped 14.4%, while New Orleans hotels made more money thanks to hosting Super Bowl LIX.
• After hosting Super Bowl LVIII in 2024, Vegas hotels saw fewer bookings and lower prices compared to last year. | SOURCE: HotelNewsResource

MGM Resorts Data Breach Settlement

• MGM Resorts Settlement: MGM Resorts has agreed to a $45 million settlement for data breaches in 2019 and 2023, which exposed guests’ personal information, including names, addresses, emails, and in some cases, Social Security numbers and passports.
• Compensation Details: Affected individuals can receive up to $15,000 if they provide documentation of significant financial losses. Most claimants will get between $20 and $75, depending on the type of personal information exposed.

• Claim Deadline: To receive compensation, claims must be submitted by June 3, 2025. Victims may also be eligible for one year of identity theft protection and $1 million in fraud/identity theft insurance. | SOURCE: The Sun

Roosevelt Hotel Sale

• New York City’s iconic Roosevelt Hotel, owned by Pakistan International Airlines, is expected to be sold for up to $1 billion after the city relocates migrants currently housed there by June. The property, adjacent to Grand Central Terminal, is attracting interest from major developers. | SOURCE: NY Post

HOTEL REVENUE & PRICING STRATEGIES

Hilton’s Optimism

• Hilton Worldwide Holdings Inc. expressed increased optimism for 2025, citing a favorable business environment post-U.S. elections. The company forecasts a 2% to 3% systemwide top-line growth, with net unit growth expectations at 6% to 7% for 2025. In Q4 2024, Hilton reported a 3.5% increase in RevPAR and adjusted earnings of $1.76 per share, surpassing estimates. | SOURCE: Hilton

REGULATORY & LEGAL UPDATES

New York’s Plastic Ban

• Effective January 1, 2025, New York banned single-use plastic toiletry bottles in hotel rooms under 12 ounces. Hotels with 50 or more rooms must comply immediately, with all hotels expected to adhere by 2026. Non-compliance can result in fines up to $500. | SOURCE: NY Post

SEASONAL TRENDS

Mardi Gras Impact

• Best Mardi Gras hotel occupancy since COVID-19 – New Orleans hotels averaged 86% occupancy between Feb. 28 and Mardi Gras, with Endymion Saturday peaking at 95%.
• Still not back to pre-COVID levels – Before the pandemic, Mardi Gras hotel occupancy regularly hit 95%, but numbers are improving compared to last year’s 81% average.
• Super Bowl week boosted tourism – French Quarter and CBD hotels hit 97% occupancy during Super Bowl weekend, with average room rates nearing $1,000 per night. | SOURCE: Axios

🔔 BREAKING INDUSTRY NEWS

Hilton Grows More Bullish on 2025 as Hotel Chain’s Stock Hits All-Time High

• Hilton’s stock hit an all-time high of $273.01 after rising 5.9%, marking a 10.3% gain in 2024 compared to the S&P 500’s 3.3% increase.
• The company reported strong Q4 results with a 3.5% growth in revenue per available room (RevPAR), exceeding guidance, and adjusted earnings of $1.76 per share, beating the $1.68 estimate, alongside revenue of $2.783 billion, slightly above expectations.
• Hilton projects 6–7% net unit growth for 2025, driven by a robust development pipeline of 498,600 new rooms, and remains more optimistic about economic growth and business opportunities than it was three months ago. | SOURCE: MARKETWATCH

Culinary Workers End Strike in Las Vegas

• Culinary workers in Las Vegas have ended their 69-day strike after reaching a new five-year collective bargaining agreement with Virgin Hotels Las Vegas. This marks the first strike in 23 years for the Culinary Workers Union Local 226 and Bartenders Union Local 165, which represent 60,000 workers in Nevada.
• While contract details were not disclosed, both parties expressed a commitment to fostering positive relations. The strike included peaceful protests, with 57 members arrested for civil disobedience. Union members had urged the public to avoid Virgin Hotels during the dispute. | SOURCE: AOL

Marriott Adjusts 2025 Profit Forecast Due to China Slowdown

• Marriott International’s stock fell nearly 5% after forecasting a lower-than-expected 2025 profit due to weak hotel performance in Greater China. The company projected an adjusted profit of $9.82 to $10.19 per share, below Wall Street’s $10.65 estimate, as domestic travel in China remained sluggish amid economic concerns.
• Systemwide room revenue in Greater China declined 1.7% in Q4, though a slight improvement is expected this year. Meanwhile, strong demand from wealthy Chinese travelers boosted outbound travel to Southeast Asia, and the Asia-Pacific region (excluding China) saw a 12.5% revenue rise, driven by growth in Japan, India, and Thailand.
• Marriott anticipates stronger international market growth outside Greater China compared to the U.S. and Canada. Despite these challenges, Q4 adjusted earnings of $2.45 per share beat estimates by 7 cents, with revenue reaching $6.43 billion, surpassing the $6.38 billion forecast. | SOURCE: REUTERS

🚨 REGULATORY UPDATES

New York Bans Single-Use Plastic Bottles in Hotels

• Effective January 1, 2025, a new law in New York prohibits hotels from providing single-use plastic bottles for toiletries such as soap and shampoo. Initially, this applies to hotels with 50 or more rooms and will expand to all lodgings by 2026.
• Non-compliance can result in fines up to $500 for repeated violations. | SOURCE: NYPOST

📈 OCCUPANCY AND OPERATIONS UPDATES

U.S. Hotel Industry Sees Strong Q4 with Record RevPAR Growth

• Top-Line Metrics (December 2024 vs. December 2023):
• Occupancy: 53.2% (+1.1%)
• Average daily rate (ADR): US$156.67 (+3.3%)
• Revenue per available room (RevPAR): US$83.30 (+4.4%)
• Largest monthly RevPAR gain of the year
• Highest quarterly RevPAR growth since Q1 2023
• 13 hurricane-affected markets lifted quarterly performance
• Compressed holiday period and calendar shift also key in December performance
• SOURCE: STR

U.S. Hotels State of the Union February 2025 Edition By CBRE

• CBRE raised its 2025 GDP growth forecast to 2.4% from 1.7%, with inflation expected to persist and interest rates projected to drop to 3.9% by Q4 2025. December RevPAR increased 2.6%, driven by ADR growth of 2.3% and occupancy rising 0.2%, with resorts seeing the most improvement. Short-term rentals continue to take market share, reaching 13.7% demand share, while cruise, casino, and rental revenues significantly outpaced hotel growth.
• Profit margins remain under pressure despite a 2.6% rise in total operating revenues, as expenses continue to grow faster than revenues. Corporate travel demand surged 5.6%, while group demand grew only 0.2%. Inbound international travel reached 93% of 2019 levels, though growth from Japan and China hit a post-pandemic high of 58.4%. TSA throughput rose 1.7% YoY in January, following a strong 6.6% holiday season increase, boosting airport hotel RevPAR by 3.5% in December. | SOURCE: CBRE

🏅 COMPETITIVE SHIFTS

Club Quarters Hotels Became The First in The Industry to Integrate Digital Room Keys

• The hotel industry is ramping up technological advancements to enhance guest convenience and stay competitive. Club Quarters Hotels became the first in the industry to integrate digital room keys into Apple and Google Wallet, allowing guests to access their rooms seamlessly without downloading an extra app. Hilton is leveraging the wellness trend by integrating Calm’s meditation and mindfulness content into 2,400+ properties, offering an in-room digital wellness experience.
• Other tech-driven initiatives include JW Marriott Scottsdale’s operational upgrades under new management and Dreams Resorts’ MasterChef Junior experience, which enhances family-oriented offerings with interactive culinary programs. Meanwhile, The Ritz-Carlton, Amelia Island revamped its Salt restaurant with expanded private dining and digital menu enhancements. | SOURCE: TRAVELMARKET

Must-Read 2025 Hospitality Trends

Labor Strikes Finally End: San Francisco hotel workers are concluding a three-month strike, with the final group voting on a tentative agreement with Hilton. This follows recent agreements with Marriott and Hyatt, affecting approximately 1,750 workers. The strike, which began in September, impacted over 10,000 hotel workers across 11 U.S. cities, including about 2,500 in San Francisco. The new Hilton agreement preserves union health insurance, provides wage increases, and offers protections against understaffing, expiring in 2028.
SOURCE | AP NEWS

Acquisitions Fueled By Booming Hospitality Market: Brookfield Asset Management acquired the Hotel X Brisbane, Vignette Collection, for approximately $90 million. This 146-room luxury hotel, completed in 2021, features a ground-floor restaurant, rooftop bar and pool, leased office space, fitness center, and conference space. The purchase highlights Brookfield’s confidence in Brisbane’s rapidly growing hospitality market, especially as the city prepares for the 2032 Olympic Games.
SOURCE | THEAUSTRALIAN

Safe Hotel Act Signed Into Law: New York City Mayor Eric Adams signed the Safe Hotels Act into law, mandating that hotels obtain licenses every two years and adhere to strict requirements concerning safety, staffing, and cleaning, with potential fines of up to $5,000 for violations. The Act mandates 24/7 front desk staffing, employee panic buttons, and human trafficking training for staff. Critics argue that the legislation is a misuse of the City Council’s powers, while city officials insist the law aims to ensure hotel safety and cleanliness.
SOURCE | NEW YORK POST

Hotel Revenue Growth: Total hotel revenues in the U.S. grew 1.8% in Q3 2024, aligning with the year-to-date trend of 1.9%. Despite positive total revenue growth, a 0.7 percentage point contraction in Gross Operating Profit (GOP) margins led to a 1.1% decrease in profit dollars for the second consecutive year.
SOURCE | HOSPITALITY NET

Hyper-personalization Adoption: Hotels are increasingly adopting hyper-personalization strategies, utilizing big data to create personalized guest experiences. By analyzing past browsing or buying habits and known preferences, hotels are crafting bespoke offers and services to enhance guest satisfaction.
SOURCE | GLION

Supply Chain Issues: John Burke, a prominent hotelier from Armada Hotel in Clare, asserts that reducing VAT to 9% would benefit the hospitality industry but wouldn’t solve all problems. Operating difficulties are emphasized, particularly with food costs and narrow profit margins. Burke stresses the need for higher wages and better working conditions while acknowledging the sudden financial strain these improvements cause. He advocates for ongoing creativity and hard work to overcome challenges, highlighting the importance of cafes and restaurants in rural communities. Despite off-season challenges, Burke aims to keep the hotel open year-round to retain staff and maintain quality. He urges for comprehensive support beyond VAT reduction to ensure the industry’s survival and growth.
SOURCE | THE SUN