Comment: Next hotel revolution?

Recently, I’ve had the privilege of assisting the team at Bench Events on developing the programme for the upcoming Arabian Hotel Investment Conference, now in its 13th year. This has meant conversations with more than 100 hotel owners, investors, developers and operators over the past four months, not to mention experts from related professions, such as lawyers, bankers, architects and contractors.

Discussions of market economics, catalysts of change, the sharing economy, global influencers and regional dynamics were a given, but what fascinated me was the desire among these hotel industry professionals to find out what is new among hoteliers and even more importantly, what will be next. As an industry, it seems we are on tenterhooks, desperately awaiting bold new concepts, original ideas and an understanding of how our business and its brands can best diversify for maximum return.

This sentiment reminded me of a column I wrote for this very magazine back in 2011, entitled ‘Who will lead the next hotel revolution’. In this article, which now makes me feel rather old, I asked what would be ‘truly new — a hotel concept no-one has tried’ amid a flurry of pipeline announcements.

That was six years ago. Have we seen a ‘hotel revolution’ since? I’d argue that that answer to this question is ‘no’, although the industry has made significant steps forward. Let’s look at some examples.

The mid-market is finally emerging as a segment with exciting brands that appeal to both investor and customer, buoyed by the demand of the rising middle class. Rove by Emaar Hospitality Group has reportedly been a runaway success, while globally CitizenM is making waves with its traveller-centric approach.

Hotel ‘collections’, from Hilton Worldwide’s Curio to Marriott’s Autograph, offer the perception of an independent hotel with the backing of a global giant, with obvious benefits again to both owner and consumer.

Luxury hotels are offering more personalised services than ever; brands at all levels are focused on developing the easiest booking methods possible; and global and local companies alike are online, social and tech-savvy.

But, who stands out to you, right now, as doing something different? Who has a concept that stands apart, from design to product to service? What brands make an investor willing to part with capital and which would you, as a customer, pay more for than their competitors?

In a market where one of the only ways to compete with OTAs is via loyalty, this ‘brand premium’ is essential. It’s the only way to stop hotel rooms becoming commodities, bought from third-parties and compared only on price. Even more importantly, in what will still likely be challenging macroeconomic circumstances in 2017, brand premium will be sought after by investors more than ever.

Perhaps I’m looking in the wrong place for the next hotel revolution? Maybe it won’t come from the concept creators, brand guys or operators, but from the investors, owners and developers seeking to drive higher returns in the toughest trading environment yet. Or maybe even from a passionate traveller via crowd funding and the power of social media?

Now, where’s my sketchpad?