Hotels hail era of reinvention at HICAP 2025

Global Asset Solutions’ CCO Leanne Reddie reports from days two and three of HICAP, where technology was helping the sector innovation 

The global hotel industry is entering a new phase of recovery and reinvention, with industry leaders expressing optimism about market performance through 2026 and 2027, delegates heard at HICAP last week.

After years of volatility driven by the pandemic, supply chain disruptions, and geopolitical uncertainties, sentiment across major hospitality markets is shifting toward stability. 

Much of this confidence is anchored in resurgent international travel, especially within upscale and luxury segments. Outbound leisure travel from key economies such as the US, the UK and China has rebounded faster than expected, fuelling demand for high-end accommodation and experiential tourism. 

The Asia-Pacific region remains a central engine of growth, supported by both inbound and intra-regional travel. Japan stands out as a key beneficiary, drawing visitors attracted by a favourable currency and regional accessibility. While some destinations continue to experience uneven recovery due to geopolitical tensions and economic instability, the broader industry outlook remains fundamentally positive.

A second defining theme for the sector is the strategic reshaping of brand portfolios and investment models. Global hotel groups are pursuing portfolio diversification while striving to enhance operational efficiency across existing assets. Many companies are now exporting strategies originally tested in mature Western markets into emerging destinations, particularly in Asia-Pacific, where rising middle classes and tourism infrastructure investments provide fertile ground for expansion. 

Brand aggregation has accelerated as groups expand their offerings through soft brands and lifestyle collections, giving consumers greater choice while capturing loyalty within expansive ecosystems. 

Mergers and acquisitions across the region show a mixed picture: Japan, though attractive, remains highly competitive with limited acquisition opportunities, whereas Thailand, Malaysia, and Vietnam are experiencing asset price adjustments and new investment openings. 

Branded residences have gained notable traction as a hybrid model blending hospitality with real estate. Offering lifestyle appeal and recognisable branding, these developments enable cross-selling and deepen customer engagement while generating diversified revenue streams.

Technology is not only transforming operations but also redefining customer interaction in hospitality. Artificial intelligence is emerging as a disruptive force poised to reshape the booking landscape. 

Industry experts predict AI-driven booking engines will increasingly compete with or even replace traditional search engines. This evolution brings both opportunity and risk. Large OTAs and technology platforms are rapidly integrating AI tools that could consolidate control over pricing, inventory, and customer data—potentially increasing costs for hotel operators. 

In response, hotel companies are investing heavily in making proprietary content accessible to AI systems and leveraging their own customer data to drive personalised experiences. AI integration is already visible in predictive demand analytics, smart e-commerce platforms, and in-room personalisation enabled by wearable devices, chatbots, and Internet of Things solutions. 

Robotics and automation are also entering hotel operations, improving service efficiency from housekeeping to concierge support. Yet despite the growing influence of technology, industry leaders emphasise that hospitality must remain fundamentally people-centred. Human connection, customer empathy, and service culture are seen as essential differentiators in an increasingly automated world.

Sustainability has evolved from a marketing add-on to a core requirement of long-term hotel strategy. Environmental, social, and governance standards now play a decisive role in investment decisions, especially for institutional capital. Companies across Europe and Asia Pacific are adopting certifications and implementing new technologies to reduce emissions and improve energy, water, and waste efficiency. 

Sustainability strategies are becoming more targeted, with some organisations narrowing their focus to high-impact areas such as ocean conservation, carbon reduction, and resource circularity. This is particularly relevant for resort operators in ecologically sensitive coastal environments, where guests increasingly demand climate-responsible operations.

At the same time, loyalty strategy and customer retention are being reimagined across the hospitality landscape. Loyalty programmes have evolved from simple points-and-rewards schemes into large-scale lifestyle ecosystems that connect customers to a broad portfolio of brands, partners, and experiences. 

These ecosystems are now the backbone of guest engagement and revenue retention. Independent hotel companies and smaller operators, lacking the scale to build standalone programs, are partnering through alliances or participating in aggregated loyalty platforms to remain competitive. 

Controlling the guest relationship, particularly from the point of booking, has become a strategic priority, as reliance on third-party distribution channels continues to erode profitability. However, as digital engagement increases, so do concerns over cybersecurity, data privacy, and system resilience. Experts warn that technological progress brings heightened vulnerability to data breaches and operational disruption, while geopolitical volatility and macroeconomic uncertainty continue to challenge long-term planning.

Across all discussions, a number of imperatives emerge for industry stakeholders seeking to navigate the next phase of growth. Continued investment in AI and data analytics is essential to delivering personalised and efficient guest experiences. Sustainability must remain a strategic priority, integrated across new developments and asset renovations.

Strengthening loyalty partnerships and alliances will be vital to sustaining direct customer relationships in a competitive digital marketplace. Investors and operators should also stay alert to ongoing shifts in regional economies and geopolitical dynamics to identify new acquisition opportunities. Finally, as hotels grow more technologically dependent, robust cybersecurity strategies and workforce training are indispensable to protecting assets and maintaining trust in an era of rapid digital transformation.