How Guest-Centric Strategies Boost Hotel Revenue and Growth

Introduction

The hospitality industry is evolving, with a significant shift from traditional metrics towards a more guest-centric approach. According to a recent collaborative report by Skift and Mews titled "Why Hotels and Their Investors Are Leaving Millions on the Table," the focus on room sales as a primary success determinant is outdated. As guests increasingly seek meaningful experiences and flexibility, hotels need to adapt their strategies to tap into new revenue streams.

The Old Metrics vs. New Realities

Historically, hotel performance has been measured through occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR). However, these metrics only scratch the surface of true value creation in modern hospitality. With guests desiring more than just a place to sleep, the industry faces a challenge: how to redefine success in terms beyond mere room bookings.

Matt Welle, CEO of Mews, emphasizes this sentiment, stating, "Hospitality is no longer just about rooms, but about relationships." This shift in mindset towards maximizing guest value opens up new revenue opportunities and fosters long-term loyalty.

The Shift from Rooms to Relationships

The report highlights a growing transition from room-based performance metrics to those focused on guest interaction, such as revenue per available guest (RevPAG). This measure encompasses the full experience of guests, whether they are dining, working, or socializing within hotel properties.

For instance, lifestyle brands like Ennismore have reported that over 60% of their revenues come from non-room-related services, including food and beverage, coworking spaces, and events. This proves that experience-driven hospitality is not only more profitable but also more resilient in today’s market.

Unlocking Community Value

Forward-thinking hoteliers are transforming their establishments into community hubs, catering to both locals and travelers. Take Staypineapple in Boston, where the Trophy Room bar has reinvented the hotel lobby into a vibrant public space. Similarly, Paradise Resort Gold Coast has successfully increased both revenue and guest satisfaction by offering perks like water park access and spa reservations tailored to unified guest profiles.

Nearly one-third of hotels on the Mews platform now provide bookable add-on services such as parking, coworking, and memberships. The number of hotel businesses utilizing Mews Spaces—designed for those off-room bookings—has nearly doubled from 1,179 to 2,223 between 2024 and 2025. Alongside this, bookings surged over 230%, highlighting the industry's accelerated shift towards diversified, experience-based revenue.

Measuring What Matters

Traditional Key Performance Indicators (KPIs) only capture a fraction of a hotel’s potential revenue. By prioritizing the entire guest journey and integrating operations, marketing, and financial systems, hotels can better understand overall guest value, deliver personalized experiences, and leverage new income sources.

Technology as the Catalyst

Technology plays a crucial role in this transformation. Integrated solutions help anticipate guest needs, customize experiences, and manage multiple revenue streams seamlessly. For example, Swiss Hotel Apartments connects guest data across departments to offer personalized service across their 48 properties, while Strawberry employs flexible systems and AI tools to streamline check-ins and housekeeping while maintaining an intimate guest experience.

Richard Valtr, founder of Mews, asserts, "Technology doesn't replace hospitality; it reveals it." When digital systems handle complexities, staff are free to focus on delivering memorable guest experiences.

A New Era for Hotel Investment

The findings from the Skift x Mews study underscore that hotels focused solely on room revenue are missing out on substantial potential income. Community- and guest-centered strategies not only enhance guest experiences but also strengthen asset values over the long term. For further insights, the full report can be downloaded to explore how hotels can align with contemporary expectations and unlock new opportunities.

About Mews

Mews is a leading platform designed for the new era of hospitality, serving over 12,500 clients in more than 85 countries. Its Mews Hospitality Cloud optimizes hotel operations, enhances guest experiences, and drives profitability. Trusted by brands such as BWH Hotels and Strawberry, Mews has raised $410 million from investors including Goldman Sachs Alternatives and Tiger Global Management to revolutionize the hospitality landscape. For more information, please contact Mews’ press team.