#USA #New York #hospitality strategies #Skift report #Mews platform

Transforming Hospitality: The Shift from Rooms to Relationships

A recent collaborative report by Skift and Mews titled "Why Hotels and Their Investors Are Leaving Millions on the Table" challenges the fundamental assumptions of the hospitality industry. Traditionally, success in this sector has been measured primarily by occupancy rates, daily rates, and revenue per available room (RevPAR). However, the latest findings suggest that such metrics may no longer be adequate indicators of value creation in today's hotel landscape.

The Changing Landscape of Hospitality

The report posits that the modern traveler prioritizes experiences, flexibility, and meaningful connections over merely occupying a room. In this context, hotels that still focus predominantly on room sales may overlook significant opportunities for revenue and growth.

Matt Welle, CEO of Mews, articulates this shift: "Hospitality isn't just about rooms anymore – it's about relationships." By redefining success to include maximizing guest value, hotels can access new revenue streams and foster long-term loyalty among clients.

From Rooms to Guest-Centric Metrics

The shift away from traditional performance metrics is gaining traction, with hotels increasingly adopting new measures like Revenue per Available Guest (RevPAG). This innovative approach accounts for the complete value of each guest's engagement — whether they stay overnight, dine, or attend events — effectively capturing a broader picture of a hotel's financial health.

Take, for instance, the lifestyle brand Ennismore, which has seen over 60% of its revenue coming from non-room sources such as food and beverage services and coworking spaces. This illustrates that experience-focused hospitality not only enhances guest satisfaction but is also a financially rewarding model.

Building Community Through Hospitality

Forward-thinking hotel operators are re-envisioning their properties as community-oriented spaces that cater to local residents in addition to travelers. A prime example is the Staypineapple in Boston, where the Trophy Room, a lively neighborhood bar, transforms the hotel lobby into a vibrant gathering space. Similarly, Paradise Resort Gold Coast has strategically designed packages that incorporate water-park access and spa treatments, leading to increased revenue and guest satisfaction.

Notably, nearly one-third of hotels utilizing the Mews platform are now offering bookable services beyond overnight stays. The usage of Mews Spaces, which facilitates these expanded services, nearly doubled from 1,179 to 2,223 between 2024 and 2025, with reservations increasing dramatically by over 230%. This trend underscores the industry's ongoing transition towards diversified, experience-centric revenue models.

Redefining Key Performance Indicators

Many conventional Key Performance Indicators (KPIs) fail to reflect the full potential of hotel operations. By focusing on the entire guest journey and integrating marketing, operational, and financial systems, hotels can gain deeper insights into guest value. This, in turn, allows for more tailored services and alternative revenue channels.

The Role of Technology

Modern technology plays an essential role in this transformative wave. AI and integrated systems enable hotels to anticipate guest needs, personalize experiences, and efficiently manage multiple revenue avenues. For example, the Swiss Hotel Apartments leverage cross-departmental data integration to provide customizable services across its 48 properties. Additionally, Strawberry employs innovative systems and AI to enhance check-in processes, housekeeping, and guest communications while ensuring a personal touch remains intact.

Richard Valtr, Founder of Mews, emphasizes this point: "Technology doesn't replace hospitality, it reveals it." By allowing digital systems to manage complex operational factors, hotel staff can devote more attention to what truly matters — making guests feel valued and attended to.

Conclusion: A New Era for Hospitality Investment

The findings of the Skift x Mews report strongly indicate that hotels that concentrate exclusively on room sales might be forgoing significant revenue potential. Embracing guest-centric, community-oriented strategies not only elevates the guest experience but also reinforces long-term asset value. As the hospitality landscape continues to evolve, establishments that adapt to these changes are likely to thrive in the increasingly competitive market.

For those interested in exploring these insights further, the complete report, Why Hotels and Their Investors Are Leaving Millions on the Table, can provide a comprehensive understanding of this transformative approach in the hospitality sector.