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