Over the past year or so, we’ve been seeing quite the shift in the hotel space. Below are three major trends we think will continue strong into 2018.
According to Travel Weekly, “Last year, revenue per available room at the 26th- through the 50th-largest U.S. hotel markets, which include cities such as Cincinnati, Richmond, Raleigh-Durham and Louisville, rose 4.3%, outpacing the 2.4% growth rate for the 25 largest U.S. markets, according to data from STR.”
Boutique hotels are getting smaller. Micro-hotels are popping up in markets like New York and Washington D.C. due to the rise in tourism. What qualifies as a micro hotel? Something with rooms in the 180-square-foot range. The sizing allows developers to build about one-third more rooms in each property at rates only 15%-25% lower.
Retail brands have been enter the hospitality space hard, and they’re banking on brand loyalty. Retailers and lifestyle brands such as Muji, west elm, Restoration Hardware, Equinox, and Virgin all have plans for hotels in the coming years.