Hotel CEOs Are Bullish on Continued Boom

New York City’s short-term rental regulations could slash up to 70% of Airbnb’s 23,000 active listings in the city after September 5. Experts are divided on how the move might affect hotels, and their forecasts are foggy. Yet the analyses reveal interesting details about this critical lodging market regardless.

From today’s Daily Lodging Report newsletter: Nikkei Asia published an article on Hilton planning to expand its luxury offerings in Asia. Hilton will be bringing its Waldorf Astoria brand to Malaysia, Vietnam, India, and other countries for the first time as part of its plans to open 25 new luxury hotels in the Asia Pacific region over the next few years. That’s up from the 33 luxury hotels it currently runs in the Asia Pacific.

Can hotels exert more influence in policy-making? Where will future development growth come from? Is generative AI relevant to the hotel sector? These and other subjects will be top of mind for us as we interview top bosses at Hilton, Hyatt, Accor, and other hotel leaders on-stage at the Skift Global Forum in New York on September 26-28.

Accor, the Paris-based hotel giant, said on Tuesday that Omer Acar will head its brands Raffles & Orient Express as of March 1. Acar will join Accor’s other brand CEOs in its luxury and lifestyle group (Fairmont, Sofitel & MGallery, and Ennismore) — all of whom report directly to group CEO Sébastian Bazin.

Not all hotels should pursue remote workers, a hotel group CEO has suggested, because they mostly served their purpose during the pandemic.

While 2022 was a post-pandemic boom year for hotel demand in much of the world, total global hotel investment volume decelerated slightly to $71.9 billion, a decline of 2 percent relative to 2021. The relative lack of outbound Chinese hotel investment, the Russian war in Ukraine, and recessionary pressures in several markets tamped down the pace of growth.

Hotel company Sonesta said on Tuesday it would launch a new brand, Sonesta Essential, and offer a just-added brand, The James, to developers.

Entrepreneur Richard Branson and Virgin Group announced a reorganization of their hotel brands on Thursday. Virgin Group, which owns a half-dozen luxury Virgin Hotels, will take control of Branson’s private collection of hotels, retreats, and islands (including Branson’s own much-hyped Necker Island), marketed as Virgin Limited Edition.

Accor put in place the pieces for a corporate re-organization this month. But this re-org is one of a few over the roughly decade-long reign of Sébastien Bazin, chairman and CEO. The latest changes have prompted some eye-rolling from analysts at investment banks and executives at competitor hotel giants.

Hyatt Hotels Corp., which enjoyed a blockbuster financial performance in 2022, forecasted Thursday continued success this year, especially in the first half. The company expects to benefit from growing consumer interest in its lifestyle, luxury, and resort properties, returning group reservations for its banquet halls, and an expanding room count.

For InterContinental Hotels Group (IHG), soaring hotel rates owing to a post-pandemic surge in pent-up demand for travel have been a boon after the pandemic bludgeoned the travel sector. But IHG Hotels & Resorts said its pricing power would last beyond the present moment thanks partly to its investments in digital technology. The company also anticipated future growth as China, the world’s second-largest economy, reopens.

Good morning from Skift. It’s Tuesday, February 28. Here’s what you need to know about the business of travel today.