As we embark on 2025, the hospitality industry is undergoing changes to meet the demands of a shifting world. From economic shifts to evolving traveler preferences, hotels are pivoting to cater to new trends. Renovations are a key focus in the hotel construction pipeline, while investments are set to rise in the coming year.
In 2025, hotel investments are expected to increase, driven by factors such as low interest rates and a positive lending environment. Greg Perry from RREAF Holdings and Zach Demuth from JLL Hotels Research predict a surge in hotel investment driven by strong group travel demand.
Group travel is anticipated to be a significant revenue stream for hotels in 2025, encompassing corporate meetings, sports events, and entertainment travel. The rise of multigenerational travel is also on the horizon, with families increasingly opting for vacations that cater to multiple generations.
Technology is reshaping wellness amenities in hotels, with a focus on high-tech solutions rooted in medical science. From robotics to data analytics, hotels are offering advanced treatments to enhance the guest experience. Meanwhile, hotels are also embracing culturally immersive experiences, tapping into local culture to provide guests with authentic and immersive experiences.
On the construction front, a wave of renovations is expected in 2025, with a significant number of hotels due for upgrades. Automation and efficiency are key trends in hotel renovations, with a focus on smart technologies and sustainable practices. Despite challenges in the global supply chain, hotels are adapting to meet the evolving demands of travelers in the new year.