Four Ways Hotels Are Changing

We assume hotel sheets are being changed. But what else? Try demographics in travelers (including more females, Millennials, and inter-generational groups), which means new designs. We dug up four ways hotels are vastly different from a decade ago.

1) Reinvented lobbies

Say goodbye to the front desk, says Gensler principal Nancy Nodler, who's based in Houston. Today's travelers are content checking in and out on their smartphones. But while the front desk is shrinking, the lobby itself is growing. That's because we're moving away from walled-off areas and into open multi-functional space. The lobby is also moving (not literally, we don't have that kind of balance), thanks to the trend toward mixed-use development; Nancy tells us those properties often want hotel offerings but want to keep retail on the ground floor, pushing the lobby to the second story.

2) Feminine amenities

Nancy says women business travelers (like this one in Houston's Hotel Sorella) are the fastest-growing segment, and hotels are noticing. Many women traveling alone don't want to let in room service, but neither do they want to sit conspicuously alone in the restaurant. That's pushing hotels like Houston's upcoming Hyatt on Sage to include a market concept with made-to-order, grab-and-go fresh and healthy food. The formal restaurant is shrinking, and Nancy tells us those are often including communal seating options. Also geared to women: Increased daylight, reading materials in the rooms, and amenities like brand-name moisturizers. (Though let's be honest, we could all use it... dry skin doesn't consider gender.)

3) Targeting a social conscious

Millennials (who now make up 13% of business travel bookings) want to stay somewhere that aligns with their values, and they're willing to pay extra for it. That often means hotels that are greener and healthier. (They need a million electrical outlets as well.) Nancy says that can lead to some fun amenity offerings, like yoga instructors on site or hotels hosting jogging tours of their cities.

4) Localization

Hotel brands used to build cookie-cutter properties that looked the same everywhere. But Nancy says now they want to be more boutique and reflect their city. She tells us hotels want to be able to tell a story behind their designs. That's especially true of the Sonesta (pictured) Gensler is designing in Austin. It's got a Texas Hill Country design, incorporates local materials, and serves local foods.

Hotels, Brace Yourselves

Punxsutawney Phil may be on most people's hit list right now, but spring will be here before you know it. And with it comes collegiate debauchery. This week, Travelocity released its annual spring break travel data, which indicates a 14.7% year-over-year increase in domestic airfare while international flights remain flat. But domestic travel still reigns, with Florida the top spring break destination (South Florida came in at No. 1, followed by the Orlando area at No. 2; Fort Meyers and Tampa/St. Petersburg also made the cut). Coming in at No. 3 is Phoenix, with Las Vegas, Cancun, LA, Maui, and Honolulu rounding out the list. After shoveling two feet of snow this morning, a Corona with lime doesn't sound too bad after all.

PHOENIX: Are Hotels Ready
for the Super Bowl?

Now that the big game is over, we can get excited for next year at University of Phoenix Stadium. (It's never too early to start tailgating.) Expect a boost for Phoenix's hotel market, but where does it stand today? It's still tempered, reports LW Hospitality Advisors CEO Dan Lesser, who'll be speaking at the Bisnow Lodging Investment Summit this May in Washington, DC. For investors, there's more than enough supply for a couple of years, and scant development is happening in a few small pockets. “It's just not economically viable if you can buy a hotel below replacement cost, and there's no shortage of those properties to be had,” he says.

Regardless, there were few sales in the past year, including Interstate Hotel & Resorts and Waramaug Hospitality's $16M buy of the 257-room Hilton Phoenix Airport Hotel (pictured) and Interwest Capital Corp's $11M purchase of the historic 249-room Crowne Plaza San Marcos Golf Resort in Chandler. While Dan says Phoenix occupancies are still running below the national average, the market will—and always does—bounce back. Growth will radiate from the core of the city, and available land is being offered at a fairly low price. That could offer opportunities for select-service hotels.

SAN FRANCISCO: Hotel Vitale's
New Owner

The Embarcadero's Hotel Vitale is under contract to LaSalle for $130M, according to a securities filing. When Emerald Fund delivered the 200-room hotel in 2005, the firm said it was valued at $70M (vistas of the new Bay Bridge light show might've upped its appeal). Last fall, we partied at the hotel's Americano Restaurant for Langan and Treadwell & Rollo's annual family reunion. Here, Treadwell & Rollo Western region director Phil Tringale catches up with Fox Rothschild partner Phil Hinerman (a frequent lecturer in wine programs).

Announcing BLIS 2014!

Washington, DC is the hotel investment capital of the world. That's where we're holding our third annual Bisnow Lodging Investment Summit (we call it BLIS for short) May 13 and 14—and where you'll join hundreds of top national players to hear from experts like Thayer Lodging Group founder Fred Malek, DiamondRock Hospitality CEO Mark Brugger, and LaSalle CEO Mike Barnello. Their firms are among many of the hotel players HQ'd in DC, so use BLIS 2014 as an opportunity to call on companies like Marriott, Interstate, and more. (With so many based here, you'll probably need to visit DC soon anyway.) Also be among the first to see the brand-new Marriott Marquis, where BLIS will be the hotel's inaugural event. Sign up today for early bird pricing of $399!

You Have a Secret Admirer!

It's us… oh, guess the secret's out. We can't help it. The deals you sign, the financing you secure, the leases you rep, the ground you break, the 1031s you exchange, the buildings you top out, it all drives us wild! We're too shy to tell you how much we love you, so instead we make little jokes and fun headlines hoping you'll notice us. But today we worked up all the courage we have to ask you sheepishly: Will you be our Valentine?