By AnaTracey Hawkins
The travel industry has undeniably entered a new era, marked by a rare desire to experiment, adapt and evolve in the face of competing external pressures.
Despite its reputation as a more creative and exciting segment of commercial real estate, the hospitality industry finds itself at the confluence of many challenges: balancing long-term development and construction timelines, significant staff shortages and seemingly constant changes in consumer demands, government conditions and regulations. Rather than cutting back, however, hotel developers are leveling their portfolios, the implications of which will inevitably inform the types of properties and experiences we can expect in years to come.
The past two years have transformed the way we define “quality of life”, with a greater focus on well-being and flexibility. As more companies adopt hybrid or remote work policies, the future of travel is now heavily influenced by the future of work. Motivated in large part by the record number of workers reassessing their work-life balance, coupled with a reduction in short-term business travel, 70% of travelers are said to be digging deeper into their pockets for the holidays. now, with the intention of spending more on travel in 2022 than they have in the past five years, including 2019 (one of the best years on record for travel and tourism), according to the World Travel and Tourism Council. As a result, many developers are rethinking their approach to the hotel experience, doubling down on luxury concepts that appeal more to the modern guest.
On the business development side, we are witnessing a complete reimagining of hospitality from a health and wellness perspective, from redesigned halls and gymnasiums moved to rooms optimized around the science of circadian rhythms. Owners and operators are also investing heavily in distinctive amenities, such as organized wine cellars, flexible remote workspaces, rooftop lounges and terrace bars, unique entertainment venues, and world-class dining. . Consumers can expect these highly personalized and much sought-after retreats to come online in the coming years. On the construction side of our business, however, we are facing an increasing demand for value-driven construction strategies that balance these improvements and equipment of the future with the needs of the future. running bottom line.
Combating supply chain bottlenecks and tariffs with global sourcing in an open store contract method, our team is engaged on a number of conversion projects where diversification is increasingly the best. option. This strategy transforms the existing property into a true mixed-use destination, raising the level of service of the current offering while introducing a multimodal revenue source adapted to the market, agile and adaptable. For our most recent projects, this has included a mix of hospitality, residential and commercial such as retail.
As hotel brands venture into new territories and lean more into the luxury market, it is essential to take the planning, development and construction process seriously and to engage with teams that fully understand the landscape to ensure success.
AnaTracey Hawkins is Senior Vice President of Strategic Growth at CNY Group.
This is a piece contributed to Hotel, written by an industry professional. The thoughts expressed are the point of view of the signed individual.