4 Charts and a Paris Hilton TikTok: Lessons From Skift's Future of Lodging Forum 2023
25.08.2023 - 13:55
/ skift.com
/ Sean Oneill
/ Varsha Arora
/ Richard Clarke
/ Paris
Taking advantage of long-term trends that may boost hotel pricing power, driving more earnings per square meter at a hotel with concepts like “hybrid hospitality,” and exploring the potential of generative artificial intelligence are all potential areas of upheaval for hotel investors, owners, asset managers, and corporate brands.
These were some of the key takeaways fromSkift’s Future of Lodging Forum in London on Wednesday, March 29, at The Londoner Hotel.
We’ve picked a handful of the visuals that captured the themes discussed by industry leaders, Skift’s editors, and research analysts. These visuals seemed to resonate especially with the audience of about 250 leaders, investors, and strategists. They’re an appetizer for the session videos we’ll share over the coming weeks.
The event opened with Varsha Arora, senior research analyst at Skift Research, sharing insights on “The Experience Economy 2.0.” She highlighted potential growth areas for hotel investors and operators, such as in hybrid hospitality, luxury travel, wellness, sustainability, hyper-personalization, and the impact of generative artificial intelligence.
One opportunity cited by Arora was the “hybrid hospitality model,” which she said “offers the flexibility to switch inventory around and reuse the units of space at different times of the day to boost profitability.
One example is hotels offering coworking spaces via a more profitable proposition.
“Looking at traditional coworking spaces, they have an approximately 50-hour per week revenue potential if we assume they are open 5 days a week from 8 to 6 o’clock,” Arora said.
A traditional hotel, on the other hand, is mostly occupied between 4 pm to 10 am and is open 7 days a week, culminating in 126 hours per week of revenue potential.
“Now let us talk about a hotel that is open 24 hours all 7 days of the week,” Arora said. “By stacking the coworking model, the hotel’s real estate and hospitality offerings, you can create 168 hours per week of revenue. That’s more than three times the revenue potential of a traditional coworking space.”
Throughout the day, “cautious optimism” was the catchphrase from industry leaders. Top commercial executives at Hilton, Accor, Highgate, and Starwood said hotel demand was staying resilient despite uncertain economic conditions.
A longer-term perspective was taken by Richard Clarke, managing director at AB Bernstein. Clarke predicted a multi-year positive tailwind for hotel performance because demand will likely exceed supply in many key markets.
On the demand side, Clarke cited trends since 1996 that have seen a multi-year average growth in the middle class worldwide, which, when combined with an average annual increase in flight capacity, has