BITAC Owners Fall 2024: The Next Generation of Hoteliers on Development, Trends, and Technology

By Gavin Fraser | November 25, 2024

At a recent BITAC Owners Panel, a group of young and dynamic hospitality professionals gathered to share their insights on the future of the hotel industry. Moderated by Armaan Patel, Founder & CEO of AGA Hotels, the panel featured an impressive group of young leaders, including Yash Desai (VP of Development, AGA Hotels), Amaan Dosani (Asset Manager, Sabha Hospitality), Amar-Viran Patel (Finance Manager, Crestline Hotels & Resorts), Zayn Jasani (Senior Managing Principal, XO Ventures), and Jeremy Schmitt (Partner, Gold Coast Hotel Partners). The discussion provided a fresh perspective on key trends, challenges, and innovations shaping the hospitality industry, especially from the viewpoint of Gen Z and millennial hoteliers.

The Landscape of Hotel Development

When asked about the current state of hotel development, the panelists agreed that it’s a tough environment for traditional big-box hotel projects. Rising construction costs, high cap rates, and an overall challenging financing environment have made it difficult to find feasible development opportunities, particularly in markets that are less desirable. Zayn Jasani of XO Ventures explained that while some projects are still moving forward in high-demand locations like Washington, D.C., Santa Barbara, and Miami, most are proving less promising due to inflated costs and lower returns.

For Jeremy Schmitt, who invests in hotels through his firm Gold Coast Hotel Partners, the focus has shifted toward acquiring existing properties with potential for a complete design overhaul. He shared an example of a property in Chicago’s Gold Coast neighborhood, where the current owners had invested heavily in renovations but failed to create a unique, culturally resonant atmosphere. Jeremey’s plan is to reimagine the property by integrating design elements that reflect the local culture, blending in art, food, and style to create a true boutique experience.

The Shift to Lifestyle Hotels

One of the most significant trends in hospitality over the past two decades has been the rise of lifestyle hotels. The panelists discussed how today’s travelers, particularly younger generations, are no longer satisfied with the cookie-cutter experience offered by many traditional brands. Instead, they seek out properties that offer something unique—whether it’s a design-forward aesthetic, locally inspired food and beverage offerings, or the opportunity to connect with fellow guests.

As Yash Desai from AGA Hotels pointed out, the demand for lifestyle and boutique hotels is driven by the desire for experiences over amenities. Younger travelers want to engage with the local culture and meet new people, and lifestyle properties provide an environment that facilitates those interactions. Whether it’s murals in the lobby or a movie night with free popcorn for families near Universal Studios, small touches like these help to create a sense of community and connection—something that large chain hotels often lack.

Reaching Gen Z and Millennial Travelers

The panel also discussed how hotel brands are evolving to meet the preferences of Gen Z and millennial travelers. Amaan Dosani from Sabha Hospitality highlighted the shift in marketing strategies, pointing out that younger travelers are looking for brands that align with their values, including sustainability and local community engagement. For this generation, it’s not just about finding a place to sleep; it’s about the experience.

Brands like Marriott’s Autograph Collection and Hilton’s Tribute Portfolio have found success by offering unique, high-design properties that don’t feel like typical chain hotels. These brands give each property its own identity, creating a sense of local authenticity while maintaining the reliability of a larger hotel group. While large brands may not always meet the expectations of younger travelers, they are increasingly adapting by acquiring smaller, more innovative brands and focusing on creating personalized experiences.

The Role of Technology and Social Media

In addition to experiential offerings, technology is another key factor in attracting younger travelers. Zayn acknowledged the role of tech in enhancing the guest experience. From seamless check-ins via mobile apps to the use of QR codes for tipping, technology is streamlining many aspects of the guest experience while also allowing for a more personalized, less transactional interaction with hotel staff. Some younger travelers prefer this convenience and efficiency, as well as their desire for less human interaction during certain stages of their stay. 

However, Amaan Dosani argued that while technology has the potential to enhance the guest experience, it can also lead to a depersonalization of service. He pointed out that excessive reliance on technology may take away the human touch that many guests still value. For some travelers, especially those seeking a premium experience, the interaction with knowledgeable hotel staff is a key part of their stay.

Amar-Viran Patel from Crestline Hotels echoed that the future of hotel service will involve more “hosts” than traditional front desk agents. These hosts will not only help with check-in but will also be responsible for curating social media content, engaging with guests on Instagram, and fostering a sense of community within the hotel.

Social media, in particular, was highlighted as a game-changer in how hotels attract and engage with guests. The panelists predicted that social platforms like Instagram could become a more prominent source of bookings, as younger travelers increasingly turn to social media to discover new places to stay.

The Future of Big-Box Hotels

Despite the growing preference for boutique and lifestyle hotels, big-box brands are not likely to disappear anytime soon. However, the panelists agreed that the future of these properties will depend on their ability to evolve and adapt. Jeremy Schmitt pointed out that big-box hotels still have their place in certain markets, particularly where brand loyalty is strong. However, they will need to innovate and rethink their strategies to remain relevant to younger travelers.

One potential solution could be converting large, outdated hotel properties into mixed-use developments or even affordable housing. Zayn Jasani, who specializes in distressed properties, shared that while the margins on big-box hotels can be challenging, there are opportunities to repurpose underperforming properties for different uses. He also noted that some brands are already moving toward more flexible and diversified models, such as extended stays, that can help make large properties more sustainable in the long run.

Looking Ahead

Despite the challenges facing the industry, the panelists expressed a shared excitement about the future of hospitality. For many of them, it’s the opportunity to revolutionize the way hotels operate and create truly innovative experiences that excite them most. Whether it’s through reimagining hotel designs, integrating new technologies, or creating spaces that encourage social connections, this new generation of hoteliers is determined to shape the future of the industry in ways that reflect their values and meet the evolving needs of today’s travelers.

Ultimately, the next generation of hotel developers and operators is focused on creating spaces that feel personal, authentic, and connected to the local community. With a passion for design, technology, and sustainability, these young leaders are well-positioned to bring fresh perspectives and new ideas to the hospitality industry, ensuring that it continues to evolve in ways that resonate with future generations of travelers.