While some parts of the industry remained challenged, 2024 ended up being a year of some significant and meaningful change for the hotel industry.
With that year now in the rearview mirror, Hotel News Now compiled a series of special features to put the year that passed in context. Here's a look at highlights from that package of news coverage.
Making sense of the deals environment
There were more hotel sales in 2024 across the U.S. than the year that preceded it, but the deals pace never quite lived up to hopes and expectations.
The deals market saw activity on both the high and low ends with little in between, with liquidity for deals primarily below $50 million and above $250 million, said Dan Peek, president of Americas for JLL Hotels & Hospitality.
In perhaps the biggest deal of the year, Hyatt Hotels Corp. in August sold the 1,641-key Hyatt Regency Orlando for $1.07 billion to affiliates of RIDA Development Corp. and an Ares Management real estate fund. Hyatt bought the hotel in 2013 for $717 million.
And Europe saw more single-asset deals, as well, including MCR Hotels' February acquisition of the BT Tower in London for £275 million ($290 million).
Hotel operators face headwinds
The rising costs and wages were top issues for hotel management companies in 2024, with Island Hospitality President and Chief Operating Officer Gregg Forde noting it's hard to keep up with creeping costs.
"Our business is really predicated on two things: cost of labor and cost of goods. Inflation around goods and inflation around wage pressure was, unfortunately, significantly higher and higher than what we were seeing in [average daily rate] growth," he said.
As hotel managers saw fewer paths to growth with a stunted transactions environment, many leaned on mergers and acquisitions to both grow their portfolios and their talent.
One such deal was Pyramid Global Hospitality merging its European division — Hamilton Pyramid Europe — with London-based Axiom Hospitality. The new entity will be led by Axiom's current co-CEOs Jamie Lamb and Alex Pritchard.
“In Jamie, Alex and the entire Axiom team, we see a management platform much like ourselves, with a shared sense of commitment to our owner clients and similar organizational ‘people-first’ culture," Pyramid CEO Warren Fields said in a news release announcing the deal.
Brands lean on deals for growth
In a year of fewer new brand launches, the hotel brand companies took a cue from the management companies and looked to deals to fuel growth.
Both Hyatt and Oyo Hotels & Rooms made major acquisitions in the year, including Hyatt's deals to buy Standard International, German brand Me & All and a 50% stake in Bahia Principe. Oyo purchased economy hotel company G6 Hospitality for $525 million.
In Europe, some hotel companies have prioritized using capital for stock buybacks.
The stories that defined 2024
And finally, HNN compiled some of the biggest and most-read stories of the year to cap off 2024, including how some Chinese travelers were once again venturing overseas.
“China has much different booking and payment systems than nearly every other country, including Saudi Arabia. We have invested much into things such as making sure AliPay is accepted and seamless,” said Alhasan Aldabbagh, president of Asia-Pacific markets for Saudi Tourism Authority.