Opening a new luxury hotel is more difficult than ever. Due to high interest rates and construction costs, even if the project progresses, it will take longer than expected to complete.
On the other hand, this means that fewer new hotels will enter the sector, so nightly prices could be even higher. But on the other hand, hotel owners are under tremendous pressure to renovate and refresh their existing hotels to offer something new to their long-time guests. This often means new restaurants, out-of-the-box experiences, and renovated rooms and suites.
The recent International Luxury Travel Market Conference in Cannes, France, highlighted some of the key luxury hotel trends for 2024. Here we will introduce some points.
enhanced experience
Luxury hotel brands generally don’t add new hotels one after another when business conditions are at their best. However, current funding trends are making it more difficult than ever to expand into new markets. If a brand can’t add a large number of new hotels, the existing hotels in its portfolio suddenly have to shine brighter than ever. This means offering repeat guests a new experience, with luxurious rooms and suites unlike anything they’ve seen before.
The Peninsula New York, which opened in 1905, will undergo a phased renovation in 2024 that will include the installation of new carpeting and wall fixtures, as well as the opening of a brighter Palm Court restaurant. The hotel’s rooftop bar will add to the loft feel and is expected to be completed by September.
Waldorf Astoria Maldives Ithaafushi’s guest roster is 65% dependent on repeat business, including a $90,000-a-night private island that is a favorite of Beyoncé and Jay-Z. Having so many repeat customers means resorts must always find new ways to keep things fresh, from the food served to guests to the cocktails mixed at the bar. .
“I think it’s such a luxury to work for us, because how can you please a billionaire? How can you please someone who has everything? “Waldorf Astoria Maldives Ithaafushi’s general manager, TJ Jurak, said: “It touches your heart. That’s the experience.”
Marriott, the luxury giant
All signs point to significant tailwinds for luxury travel at Marriott International in the new year. The world’s largest hotel company hosted a breakfast at his ILTM, highlighting all the indicators that give Marriott management confidence in the luxury travel sector heading into 2024. Additionally, there are signs that luxury hotels will expand around the world.
According to data provided by Marriott’s luxury group, global wealth is expected to increase by 38% to reach $629 trillion by 2027. Moreover, in the same schedule his 30% of the world’s wealth is expected to be concentrated in emerging countries. However, demand for luxury hotels exceeds supply, with demand expected to increase by 11.4% by the end of 2025, while supply will increase by only 4.5%.
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How is Marriott catering to the new luxury traveler? The hotel company’s management pointed to new services such as: He brought brands such as the Ritz-Carlton Yacht Collection, Ritz-Carlton Reserve, and St. Regis & Edition to Saudi Arabia, and expanded Luxury Collection hotels in markets such as Nara, Japan. Tbilisi, Georgia. and Bali, Indonesia.
IHG’s luxury rise continues
The big news for ILTM last year was IHG’s major transformation of the Carlton Cannes from its InterContinental subsidiary to Regent Hotels & Resorts. The Carlton Cannes Regent Hotel opened earlier this year, but this was the first time many members of the international luxury travel press had a chance to see the property. The hotel’s Belle Époque architecture shines brighter than ever in this part of the Côte d’Azur.This is something IHG is very proud of. Continued luxury and lifestyle expansion.
We’ve covered this extensively in the past, but the new year will see whether IHG can build on its recent momentum with Six Senses and Regent and maintain its leadership in the luxury space. InterContinental’s brand refresh was announced at the end of the year. Let’s see how it goes.
Luxury hotels take time to get off the ground
If there’s one thing that’s certain in the luxury hotel industry, it’s that opening dates are just suggestions, not firm schedules. This is especially true in recent years. OWO’s Raffles Boston and Raffles London have both faced significant schedule delays during the pandemic.
The completion date for the ongoing overhaul of the Waldorf Astoria New York, which has been closed for renovations since 2017, is up for debate. (Hilton says it will be at the end of 2024, but sources also told the New York Post.) Maybe 2025.) Eight years is still not that bad compared to The Peninsula London, which took 35 years to open this year. It took him 25 years to find a suitable location for the team in London’s Belgravia area, and another 10 years after the deal was signed.
Good things and luxuries come to those who wait.
geopolitical tensions
ILTM was not entirely about the decadence and sophistication that comes with a luxury hotel stay.
opening night presentation Tina FordhamThe geopolitical strategist and advisor to companies and boards of directors sounded a bit of a wake-up call for the industry. She called on the industry to stop being silent about the reality that smoldering tensions around the world are reaching a boiling point. This also applies to areas such as Ukraine, Israel, and Gaza.
While Ukraine didn’t have much of an impact on travel appetite (Russian airspace may have been closed, travel demand in Europe was still very high last summer), tensions between Israel and Gaza did. Fordham said.
“We are already seeing how the Middle East conflict, in particular, is impacting America’s appetite for international travel in a way that the Ukraine conflict is not,” he added.
Upcoming election cycles in the United States and other countries around the world, as well as the possibility of China’s invasion of Taiwan, also threaten the geopolitical landscape. The travel industry should take note of this. Yet the message underlying all the uncertainty is also: sooner or later, you should absolutely get out and visit the destinations on your bucket list. The past few years have demonstrated how quickly things can change.
“I wonder how many? [travelers] “We’re equally thinking about making sure we take advantage of this opportunity to go and visit before there’s more Brexit, before there’s more conflict and other factors that could restrict freedom of movement.” he said.
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