Where brand executives see the most opportunities and momentum for hotel development


Where brand executives see the most opportunities and momentum for hotel development

Data center development and tax-free states provide timely opportunity


https://www.costar.com/article/403630007/where-brand-executives-see-the-most-opportunities-and-momentum-for-hotel-development
David Pepper, chief development officer for Choice Hotels International, said the company sees construction costs coming down for new hotels. The Everhome Suites San Bernardino-Loma Linda opened in California in July. (CoStar)
By Stephanie Ricca



PHOENIX — Hotel brand development executives have growth on their minds constantly.

Even in a high-cost economic cycle that’s not sparking a lot of hotel deals, brand development teams owe it to their stakeholders to find paths for growth. This means uncovering new demand generators, making brand options more resilient and building stronger relationships with owners.

“Momentum” was the word development executives from Hilton, Wyndham Hotels & Resorts, IHG Hotels & Resorts, Hyatt Hotels Corp. and Choice Hotels International used several times in a panel discussion at the recent Lodging Conference.

“We all started this year with great optimism, and I think the way I would describe where we started to where we are today is ‘momentum,’” said Dan Hansen, head of development in the Americas for Hyatt and global head of the company’s Hyatt Studios brand.

The hotel industry “continues to lap the barriers” of high interest rates, politics and tariffs heading into 2026, Hansen said.

David Pepper, chief development officer for Choice Hotels International, agreed, reflecting on a how a year ago hoteliers were setting budgets for 2025.

“We all knew who the president was going to be, we all thought inflation was going to come down and interest rate cuts would start happening,” he said. “What we’re seeing now is those things just got delayed a bit.”

With one interest-rate cut down and several more on the horizon, Pepper said the delayed momentum is picking back up again. He said he sees construction costs coming down “about 5% to 10%, mostly through labor.”

Growth opportunities

In terms of hot U.S. markets for hotel development and growth, speakers said it’s a combination of location and demand driver.

Areas with data-center and other infrastructure development are sparking interest right now for Wyndham, said Amit Sripathi, the company's executive vice president and chief development officer. He added Wyndham is seeing owners take advantage of projects coming up often in suburban areas around the country.

“Chip factories, battery plants, AI data centers — there’s a lot of this happening,” he said. “A data center in itself is not a demand generator, but it is something that changes the market dynamics.”

Hilton Chief Development Officer Christian Charnaux agreed, noting that “historically, the largest correlation to room-night demand growth has been non-residential fixed investment,” or businesses investing in new or existing physical assets. Current investment into data centers and energy infrastructure fall under that category.

“Looking at the markets where that money is allocated is interesting, because historically, that’s where room-night demand has come in right behind it,” he said.

Sripathi advised looking at the industries behind the hot industry, in this case data centers, which may not typically employ many people, but which require infrastructure such as power plants.

“These all ultimately create jobs that will create new markets, new cities that will come up,” he said.

This kind of market-scouting thinking extends to tax-free states, the general term for the nine U.S. states that don’t collect state income taxes, Pepper said.

“This is where people want to build factories, it’s where a lot of people are moving,” he said, citing Tennessee, Texas and Florida in particular.

Pepper also pointed out opportunities in the U.S.’s border regions.

“We’re seeing a big influx of demand on the border states, especially the south sides of the south border in Texas, Arizona and California,” he said.

Choice's hotels in Canada saw “double-digit revenue per available room increases in all the provinces” this year, Pepper said, referring to recent efforts by Canadians to travel domestically more than internationally.

Kevin Schramm, senior VP of development for IHG’s mainstream brands in the U.S. and Canada, said IHG’s partners are always looking at “markets that are on sale, long-term sustainable MSAs like Austin and Nashville.”

“Both have seen a lot of supply. Austin’s convention center is out of business for a while, and I think there are some buying opportunities in those markets that are fantastic,” Schramm said.

Conditions for confidence

With a complex 12 months behind them, speakers said they and their hotel owner partners are looking ahead to 2026 with a little more confidence.

“You can see the opportunity,” Schramm said. “We’ve weathered the storm, we’re fairly confident the bottom is behind us and now I can start investing in the future.”

The old way of thinking of industry cycles as innings in a baseball game is outdated, he said.

“Now it’s finding the time to jump back in and be optimistic. … There’s no magic potion. You just get comfortable with that feeling in your gut that tells you to move forward,” Schramm said.

Sripathi said future success is based on several factors coming together.

“Fundamentals in our industry have been challenged, especially in the last six months,” he said. "Seeing the floor there and recovery will ease some concerns. And interest rates are going to come down … it’s stabilization of fundamentals, supply still down, and that will give owners confidence.”

Charnaux advised hotel owners to remember the power of resilience.

“If I told you everything that had happened in the past six or seven months, then saw how we’re sitting here with the relative performance that we have, I’d say, ‘Wow, this is an industry with some pretty meaningful shock absorbers,’” he said. “Minus some black swan event, I think what we’re seeing on demand patterns and the top line, we should have a relatively better year-over-year trajectory.”

How Integrated Hotel Technology Complements Distribution Strategies


https://insights.shijigroup.com/how-integrated-hotel-technology-complements-distribution-strategies


Willing to pay more for personalization

One of the study’s strongest findings is that travelers are willing to pay more for features that improve their stay. Globally, guests said they would spend an average of 12% above the standard rate for specific amenities, which could generate US$5,383 in additional revenue per room per year for hotels. At the same time, more than half (52%) of travelers are willing to share personal data in exchange for tailored offers.

Distribution technology plays a key role in helping hotels capture this demand. But the ability to deliver on those expectations depends on the systems within the property.

Property management systems (PMS), point-of-sale (POS) platforms, payment solutions, and mission-critical infrastructure form the operational backbone. When these are connected with distribution, hotels can build the kind of seamless journeys that travelers now expect. This is the promise of integrated hotel technology.

The changing hospitality technology landscape

The Amadeus study makes clear that traveler behavior is evolving rapidly. Seventy percent of travelers said they would like to take a virtual tour of a destination before booking, with demand rising to 86% in India and 85% in China. This shows how immersive digital tools are moving from novelty to expectation.

These changes reveal how digital-first, visually engaging content now drives decision-making. Hotels must meet guests where they are inspired, but that is only the first step. Without connected systems, the expectations set during inspiration and booking cannot be fulfilled during the stay. 

The operational backbone: PMS, POS, Payments, and Infrastructure

Meanwhile, traditional sources of travel inspiration are losing ground. Newspaper ads have fallen from 26% five years ago to 18% today, while agents with a physical presence have declined from 25% to 19%. By contrast, social media adverts grew from 23% to 33%, and travel influencers from 20% to 29%.

Distribution brings guests to the property, but operational systems define the quality of their experience. The Travel Dreams report highlights how much guests expect hotels to adapt to different preferences, making flexibility and integration essential.

Property Management Systems (PMS)

One of the most striking findings is the difference between leisure and business travelers at check-in. Nearly half (48%) of leisure travelers prefer a traditional desk check-in, while 71% of business travelers favor online or self-service options. Without a flexible PMS, hotels risk frustrating one group while serving the other. An integrated PMS allows hotels to deliver both efficiency and personal interaction as required.

Business travelers prefer efficiency at check-in, while leisure travelers value personal service. Hotels must be able to provide both.



Point-of-Sale (POS)

The point-of-sale system has traditionally been associated with restaurants and outlets, but its role has expanded dramatically. Today’s POS platforms must integrate with PMS and payment systems to support cross-outlet billing, guest recognition, and mobile ordering.

When integrated with the PMS, POS becomes a powerful tool for personalization. According to the research, 42% of business travelers value AI-powered assistants for personalized information. The POS becomes the frontline where personalization is delivered in practical ways. 

Payments

Payments are a strategic enabler of revenue and a key factor in building guest trust. Hotels need solutions that handle multiple currencies, support cross-border transactions, and integrate with modern digital wallets while maintaining the highest levels of security.

The study shows that 22% of business travelers want the option to pay with cryptocurrency or digital wallets, compared to 15% of leisure travelers. As payment options expand, hotels must provide secure, integrated solutions that adapt to traveler preferences. This flexibility is also crucial for building trust.

Infrastructure

Underlying all of this is infrastructure. Cloud-first, API-driven platforms enable the seamless connections that power personalization, efficiency, and innovation. Without this backbone, technologies like smart room controls, which 33% of travelers said would improve their stay, cannot be deployed effectively.

Bridging distribution and operations

One of the study’s recurring themes is that technology must work across the entire journey. Inspiration and booking set expectations, but operational systems ensure delivery. Consider a typical traveler’s journey.

A guest is inspired by a social media post and books a stay through a distribution channel. The PMS captures booking data, ensuring room preferences and loyalty details are ready. At arrival, the guest chooses between a self-service kiosk or a personal welcome, depending on their preference. During the stay, integrated POS systems recognize their loyalty status, enabling tailored offers, while payment systems provide frictionless transactions. Finally, post-stay data feeds back into distribution, creating opportunities for personalized offers in the future.

Amadeus’ research shows that 37% of travelers believe seamless logistics, such as luggage tracking and real-time updates, would improve their journey, a figure that rises to 46% for business travelers. This kind of smooth experience is only possible when systems are connected into a seamless operational technology ecosystem.

Why integration is key

The business case for integration is clear. Amadeus’ findings reveal that guests are not only open to sharing data but also willing to pay significantly more for better experiences. Yet these opportunities are easily lost if systems remain siloed.

For example, if a guest books a premium package online, but the PMS and POS do not communicate, the hotel may miss the chance to deliver and upsell effectively. Likewise, if a loyalty guest arrives and staff lack access to real-time data, the personal recognition travelers increasingly expect is lost.

Integration ensures promises made during booking are fulfilled in-stay. It also ensures that the additional 12% revenue uplift guests are willing to pay for amenities is actually realized. In a competitive market, this alignment of commercial strategy and operational delivery is vital.

This hotel technology stack infographic from techtalk.travel highlights the systems spanning building, guest-facing, operations, distribution, and back office. Its message is clear: the real value comes when these platforms are connected through cloud-based, API-driven integrations. Download the full infographic at techtalk.travel


The next era of hospitality technology

The Travel Dreams Report also provides a vision of the future. 41% of business travelers see AI personalization as part of their ideal stay, while 50% of leisure travelers want hotels to provide more personal recognition on arrival. This balance of high-tech and high-touch reflects the dual priorities hotels must navigate.

Sustainability and wellness are also rising. 36% of business travelers want eco-friendly practices included in their hotel experience, while 44% of all travelers say enhanced wellness offerings would improve their stay. These expectations will only grow, requiring hotels to evolve operationally as well as commercially.

Meeting these demands will depend on end-to-end hotel tech ecosystems. Only by combining distribution, PMS, POS, payments, and infrastructure can hotels deliver experiences that are seamless, sustainable, and deeply personalized.

Conclusion

The Amadeus Travel Dreams Report highlights how technology is reshaping hospitality. Guests are demanding personalization, seamless logistics, flexible payments, and sustainable options. They are also willing to share more data and spend more money to get it.

Distribution platforms play a crucial role in reaching these travelers, but operational systems must ensure the promises made before arrival are delivered in reality. This requires investment in unified hotel platforms, where PMS, POS, payments, and infrastructure connect seamlessly with distribution.

Hotels that take this approach will be better positioned not only to meet traveler expectations but also to unlock new revenue opportunities and build long-term loyalty.







Delano gets two big market deals

https://www.hotelinvestmenttoday.com/Development/Brands/Delano-gets-two-big-market-deals
By Jeffrey Weinstein


The Ennismore-led brand signs deals in New York City and London after partnership with Cain.


LONDON – Lifestyle operator Ennismore has announced two high-profile deals for its Delano brand – Delano SoHo New York and Delano London. The news comes a few months ahead of the scheduled reopening of the original Delano Miami Beach, which first opened in 1947 and in 1995 reimagined by Ian Schrager and Philippe Starck.

Alongside these deals, Ennismore recently debuted Delano hotels in Dubai and Paris. A pipeline includes projects in Istanbul, Puglia, Marrakesh, and Costa Rica, along with several others under negotiation in key markets, according to Ennismore co-CEO Gaurav Bhushan.

Delano SoHo New York, also in partnership with Cain, will be located on Spring Street in Hudson Square. The hotel, currently known as The Dominick, is on the doorstep of SoHo, and will offer 390 guestrooms and suites in the 46-story tower.


                              
Exterior rendering of the Delano in New York City


Set just steps away from Kensington Gardens and Hyde Park and framed by a red-brick and stucco facade, Delano London, is being developed in partnership with Signature Developers, a luxury real estate developer in Dubai specializing in high-end residential and hospitality-related properties, as well as DCD Properties, a U.K. private property investment and development company.

Delano London is set to open in late 2026 with 67 guest rooms and suites. The ground-floor restaurant will be curated by Ennismore’s F&B Platform. Also set to make its London debut is Miami’s Rose Bar, an intimate and glamorous venue with a discreet subterranean setting with 290 sqm of lounge, meeting, and private dining spaces, as well as live music areas that can be configured to host social gatherings.

The Delano Miami Beach property will officially reopen its doors in early 2026 with a refreshed design paying homage to the building’s Art Deco roots and 171 guestrooms and suites, including Poolside Bungalow Suites and the Penthouse Suites. There will be four distinctive restaurant and bar concepts, including the Rose Bar.

This momentum builds on Ennismore’s strategic partnership with Cain, which acquired a minority stake in Delano in 2024.

In addition, Ennismore has officially announced veteran lifestyle hotelier Ben Pundole as chief brand officer for Delano.

“Ben’s creative leadership and deep understanding of hospitality will be key as he guides the brand into its next era,” said Ennismore co-CEO Sharan Pashricha. “He will oversee thoughtful growth while further strengthening Delano’s position within the luxury lifestyle space.”



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