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With COVID upsetting the hospitality industry, how are prospects for new hotels in 2020? Even sector-wide foreclosures, lay-offs, reduced occupancy, and lower earnings, have not stopped hotel construction and openings this year.
A new hotel requires years of planning, investment, and hard work. Aside from that, 2020 challenged hotel developers with an unprecedented economic environment. Obviously, no one could have predicted today’s industry situation or regulations. How are new hotel administrators meeting the challenge?
The fact of the matter is that hoteliers have stood up to the year’s adversity. They have marched ahead with innovative solutions to beat the odds. Here’s a snapshot of what’s going on in new hotels in 2020.
2020: A Challenging Year for the Hotel Industry
The 2020 pandemic hit the hotel industry particularly hard. According to the United States Coldwell Banker Richard Ellis Commercial Real Estate Services (CBRE),
“Hotel demand was down 14.2% nationally in Q1 2020 and 41.2% in March… National occupancy decreased 15.9% year-over-year to 51.8% in Q1. Occupancy in March decreased to 39.4%.”
CBRE expects the trend to continue through the third quarter of 2020. Hotels have responded by working on bare-bones staff and facility access. Newly established hotels, though, have shown adaptive resiliency with 2020 hotel openings.
What Sorts of New Hotels in 2020 Entered the Market?
The designers of new hotels this year have opened their doors amidst seasoned competition and crashing occupancy rates. And, a look at new hotels in 2020 reveals more than a surprising abundance of participants. Travel and Style, for example, listed 100 luxury hotel openings this year, focusing only on the most outstanding.
This year’s survivors have entered the century’s toughest market ready to compete. 2020’s new hotels include some spectacular offerings to carry them through the weariest economy since the Great Depression.
Hotels on Prime Real Estate
Some new hotels in 2020 focus on ideal locations to position themselves ahead of the crowd.
For example, world-renowned Aman has restored New York’s Crown Building on prime real estate: Fifth Avenue and 57th Street, Manhattan. The hotel designer has earned market footing by, “paying homage to the building’s striking architecture and significant history.”
Aside from taking advantage of its location, the hotel giant added a 2,300 square metre Aman Spa, “with a dramatic 20 metre indoor swimming pool surrounded by fire pits and daybeds as its centrepiece.” Through detailed renovation and restoration, it has positioned itself to compete in a tight market among this year’s struggling competition.
Contemporary Yet Traditional Hotels
This year’s new hotels include those that stand in front of the competition by maximizing comfort and polishing it with tradition. Hawaii’s Kohala Coast, Mauna Lani exudes rich Hawaiian culture.
Its “contemporary-yet-organic” design incorporates modern hotel amenities into a traditional tropical beach setting. Like the Aman, Mauna Lani positioned itself in the 2020 post-COVID market through design details.
Culturally Distinct Among the Locals
Some new hotels, like the Nobu Hotel Chicago, have shouldered their way through dominant look-alikes by importing culture from afar. Located in the bustling West Loop of Chicago, it aims to stand out by standing differently.
Like the Mauna Lani, designers armed its contemporary architecture with rich culture. But, they chose to import old-world Japanese design elements, rather than reiterate local style. Its fitness features, including a fitness center and indoor swimming pool, compliment its healthy cuisine and style.
Back to Nature Hotels
Six Senses has opened several hotels in 2020. The brand appeals to travelers who want a sensory experience, and some of the franchise’s additions bathe guests in nature. Its Six Senses Shaharut hotel lays far from hustle and bustle, just south of the Negev Desert, in the Arava Valley of Israel.
Architects incorporated local stone and earthy colors in its design. So, it blends in with the arid landscape. The surroundings offer themselves to outdoor recreation activities like mountain biking and hiking. Meanwhile the Shaharut spa, yoga studio, nail salon, and indoor and outdoor pools offer hotel luxuries that nature-lovers appreciate.
Hotels Opening in 2020 Offer Something Above and Beyond
This year’s economic and social challenges meant tough survival conditions for hospitality businesses. Even so, many businesses beat the odds by continuing with planned hotel openings.
How will these hotels compete amid the pandemic and record lows in occupancy rates worldwide? New hotels opening in 2020 offer something above and beyond many existing options. By standing out and offering luxuries not available just anywhere, they plan to break out from the shoulder-to-shoulder norm.
Hotel owners in this decade can also learn a lesson from them and upgrade equipment and facilities. Today’s guests want state-of-the-art hotel design with a taste of culture … from near or afar. Check in with an Archmaster expert for ideas to make your hotel stand ahead of the competition.