According to Wyndham Hotels & Resorts’ first Hotel Owner Trends Report, the outlook for the accommodations market is positive overall. Despite reporting concerns over current economic volatility, 90% of owners and developers feel optimistic about the future, and four out of five say they still plan to expand their portfolios over the next five years.
Other findings from the study reveal that extended-stay hotels are a hot niche — with 96% of respondents highlighting the space “as an investment with great potential” — and that emerging technology is a key focus in the hotel sector right now, as 90% of owners are already leveraging AI.
Our Analysis: Study Offers Insight on Current Trends, Upcoming Developments
Wyndham’s study offers insight into consumer preferences and priorities. Growing interest and investment in extended-stay properties, for instance, indicates that the pandemic-era trend of working remotely from anywhere is likely still going strong. And, with more than 80% of hotel owners and developers saying a strong loyalty program is very important or crucial to a hotel’s success, we can infer that travel perks and rewards are a key factor in clients’ purchasing decisions.
The survey results also provide a look at how hotels are evolving, especially as owners lean into technological upgrades and AI advancements. More than 70% say they are using AI to support operations and some 60% are tapping it for guest-facing services. While the integration of this technology on the backend will hopefully help properties create an increasingly seamless experience for guests, the industry will have to be careful not to lose its personal touch as it automates client interactions.
Fast Facts: More Findings From the Survey
- With multi-year infrastructure spending on the rise, 100% of survey respondents say they expect an increase in new business over the next five years.
- Thirty-nine percent of owners are interested in expanding within the lifestyle and boutique hotels segment, while 36% have their sights set on the midscale/upper-midscale segment, and 35% are interested in the economy market.
- One in five hotel owners say that investing in technology is how they plan to differentiate their property from other hotels.
- When it comes to technology, 61% say they have already invested in or are considering investing in guest experience enhancers such as streaming, digital room keys and self-service kiosks. Forty-six percent say the same about EV charging stations. One in three hotels is already using guest-messaging platforms, with another 30% looking to invest in (or increase their investment in) the tech.
