Hotel trends that drove Q4 revenue, portfolio growth
Despite a still-challenged lending environment and economic uncertainty, hotel operators focused on conversions and the booming midscale and luxury segments to fuel growth
The fourth quarter of 2023 posed several challenges for hotels. But in the face of adversity, operators remained optimistic on travel demand and found solutions to drive continued revenue and portfolio gains.
Key takeaways
- Industrywide, hotels felt a pinch on the lending front as sourcing construction financing remained challenging. Because of this, many developers and owners turned to hotel conversions as a cost-effective and fast way to build portfolio scale;
- Hotels remained bullish on the burgeoning luxury and lifestyle segment, with Hyatt Hotels Corporation, Hilton and IHG expanding their pipelines in the space;
- Coming out of 2023, most major hotel operators expressed optimism about the state of travel demand and expect a healthy appetite for travel to contribute to revenue and portfolio growth in 2024.
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