The Future of Hospitality: A Data-Driven Approach to Design, Sustainability, and Adaptability

The hospitality industry is undergoing a transformative shift, driven by evolving guest expectations, sustainability imperatives, and technological advancements. At the core of these changes is the increasing reliance on datadriven design and strategies to enhance revenue optimisation, improve operational efficiency, and elevate the overall guest experience.

Space exploration: adaptability and flexibility in hotel design
As guest preferences shift towards more dynamic and multifunctional environments, hotels are increasingly embracing more adaptable space planning. The ability to configure spaces to suit work, leisure, and social interactions can deliver on several fronts, not least being the potential to activate more revenue generating space, aligned with operational efficiency, to deliver a more personal guest experience.

Full circle: sustainability and circular
economies in hotel design
Sustainability is no longer an added element in hotel design, it is a business imperative. Circular economy principles reduce environmental impact, enhance brand reputation, and deliver cost efficiencies through responsible resource management. As these practices continue to be refined and expanded, circular design will redefine the construction, operation, and experience of hotels, showing that a sustainable future is both attainable and indispensable.

Personal space: the future of hyper-personalisation in hospitality
AI-driven data analytics are redefining guest experiences and enabling hyper-personalisation
at scale. By leveraging data, hotels can tailor their services, improve operational efficiencies, and optimize revenue management strategies. Using AI, IoT, and data-driven design, the hospitality sector can now deliver personalised guest journeys that evolve and respond in real-time. This change extends beyond service as it focuses on creating spaces that adapts to each guest, enhancing comfort, convenience, and connection.

Refresh or renew: the use of metrics in hotel renovation and repositioning
For existing, and underperforming hotel assets, the success of a renovation, repositioning, or rebranding project depends on a clear strategy, coupled with an understanding of the operating dynamics of the hotel. A data-driven approach and methodology, that considers wider impact of both operational, as well as guest sentiment and feedback data, provides the most substantial impact relative to the time and investment required, setting the foundation for a successful project. A well-planned and executed project not only enhances the guest experience but also delivers strong ROI. By leveraging data analytics, we have seen that hotels can design spaces that not only meet current demand, but also adapt to future trends in guest behaviour, potentially increasing lifespan, and reducing the need for future renovation or repositioning.

The future of hospitality lies in integrating data-driven design, sustainability, and AI-driven hyper-personalisation to create spaces that are flexible, efficient, and guest-centric. By embracing a holistic approach to innovation, the industry can ensure long-term success and
resilience in an ever-evolving market.

With proprietary tools and methodologies, our Commercial Strategy & Advisory team offers dynamic insights, budget definition, investment analysis, and strategies that provide actionable content, and reasoned scenarios, ensuring alignment with stakeholder goals, and fostering a unified vision for project success.

We have a fundamental understanding of the operational dynamics of hospitality assets, coupled with industry leading insights, which when brought together offer a comprehensive data-driven approach for hospitality design.

Our methodology applies to new build, renovation, repositioning, and to adaptive re-use of existing properties, when considering a change of use to a hotel, residential, commercial, or retail asset. Metric analysis, and the highest and best use of revenue generating space, is at the heart of what we do to ensure efficient operation, reduced operating costs, coupled with exemplar guest satisfaction to generate increased returns.

I have been working in the hospitality sector for the past 20 years, representing operators, owners and developers. In this time, hotel facilities, and in particular public spaces, have become more adaptable to make better use of underutilised space and generate additional revenues. A shift in the guest demographics, value proposition, and aspirations for living, working, and travelling, have driven a need for facilities that offer technology-enabled, flexible, or modular space which allow guests to seamlessly switch between work, relaxation, and social activities. The obvious challenge with the development of more communal and social centric spaces is how to maximise revenue without detracting from the experiences. The traditional drivers for hotel facilities success, such as price, quality of the service and convenience of location are being challenged. Consumers now consider wider factors, such as social and environmental impacts, experiences, and health and wellness which now influence value perception.

So how can hotel properties adapt, and how can operators maximise revenues from a drive
for more flexible social spaces?

Hotel lobbies
Hotel lobbies have historically been the main gathering space within a hotel’s public area, but they do not always provide the optimum solution for either the guest or the operator when it comes to working or social gathering spaces, It is often more prudent to consider activating a hotel’s meeting and food and beverage (F&B) facilities as a means of attracting a longer staying guest who will activate additional revenue streams. Designing more formal workspace solutions with communal areas, break out meeting rooms, or quiet spaces, can help generate additional revenue from the public areas.

Meeting rooms
Meeting facilities often seem the most obvious place to integrate flexible working space, after all the meeting rooms are already there. The difficulty here is that meeting rooms tend to be booked for the full or half day and converting all or part of the facility would restrict availability, and therefore the revenue. The answer then is to create a blend of the two, a private meeting space that can be booked, alongside a more informal communal working space, which may include semi-private areas. In this way you can still capitalise on the guests requiring more private facilities.

Restaurants

The design of restaurants should consider many factors, not least the optimisation of spaces to avoid underutilisation outside of busy meal periods. Utilising F&B facilities as co-working space, outside of the meal periods, will enhance returns. When spaces are fully optimised a review of concepts, that includes faster menu options, will increase the speed of service and reduce dwell time, increasing turn ratios and potential revenues. Other aspects to consider include technology requirements, lighting, and sound levels to ensure that the space is conducive to working and holding events. This may require capital investment in existing properties so a clear strategy for return on investment is required.

Guest rooms
Guest rooms are at the heart of the hotel operation, but there is a driver to ensure that guest rooms stay relevant to the change in guest requirements. The use of underutilised guest rooms as private workspace is a focus in some properties, relevant to the market demand. Most International brands provide a sleeping, living, and working zone within their guest room concepts, but changes required to enhance working facilities, or provide more flexible living arrangements, should always be considered.

The key to success lies in seamlessly integrating these trends while ensuring a memorable and comfortable experience for guests. Any concept that extends the average length of stay for a guest will provide revenue protection and will contribute to the property’s total revenue.

Well-being
There is a growing appreciation for the role that nature plays in promoting well-being, often referred to as biophilic design, and the integration of natural elements into indoor spaces has gained significant popularity. Incorporating living walls, indoor gardens, and large windows to maximise natural light not only enhances the aesthetics but also improves air quality and reduces stress levels among guests. These natural environments can provide flexible spaces for social gatherings, and co-working facilities, further enhancing revenue opportunities within a hotel property.

A hotel property therefore has much to offer over an office or home workspace, as by its
very nature it incorporates hospitality services and facilities that allow a blending of the work-life balance. Where hotels need to capitalise on the ‘work from anywhere’ movement is to focus not only on a workspace alternative but on social and community interaction. This community centric approach is driving footfall and revenue to hotel properties. When this is combined with a metric-centred approach to the design of new facilities, and new ways of thinking about the revenue management of the space, there is a strong correlation between guest satisfaction and increased total revenues.

Circularity in hospitality focuses on reducing waste, maximising resource efficiency, and minimising environmental impacts. This includes responsibly sourcing materials, designing adaptable spaces, and considering the lifecycle of furniture, fixtures, and equipment (FF&E).

Toolkit for circular design

Integrating circular design principles within the hospitality industry mandates a structured methodology. Below is a toolkit designed to help developers, architects, and operators embed circular economy strategies throughout every stage of their projects:

Modular design

Modular layouts enable reconfiguration, allowing spaces to adapt to different functions or requirements over time. Modular design reduces the need for frequent renovations, decreasing material waste and extending the lifecycle of building components. This adaptability helps hotels stay aligned with market trends without extensive remodelling. For example, a hotel lobby can serve as a co-working space during the day and a social lounge at night with adjustable partitions and modular furniture. Not only does this provide opportunities to maximise revenues, but it can also reduce the footprint to do more with less space.

Repurposing FF&E
Choosing FF&E which can be disassembled and reused prevents these items from ending up in landfills, aligns with cradle-to-cradle principles, and reduces the environmental footprint of furniture turnover. For example, creating a partnership with furniture providers who take back used items, refurbish them, and reintroduce them to the market, either within the hotel or for resale. This offers a sustainable end-of-life solution for FF&E. This approach can be incorporated within renovation strategies, to reduce capex, or within an asset management strategy to reduce FF&E reserves.

Cradle-to-cradle materials
Cradle-to-cradle certified materials are those which can either be safely returned to the earth

or reprocessed into new products at the end of their lifecycle. These materials help in reducing waste, promoting material safety, and supporting closed-loop systems where resources are continuously cycled through production processes. They also ensure that no toxic residues are left, thus minimizing environmental impact. A good example is carpeting which is made from recyclable fibres or reclaimed wood for flooring ensures that these elements can be reused or safely biodegraded without negative impacts.

Digital and data-driven resource management

Leveraging data can help hotels identify resource-intensive processes, improve efficiency, and lower operational costs, while also enabling transparent reporting for guests who prioritise eco-friendly practices. Digital platforms that track energy and water consumption allow operators to pinpoint areas of inefficiency and take proactive steps to enhance sustainability.

Partnering to develop circular hotel concepts

Achieving the full potential of a circular economy in hospitality requires collaboration with sustainability experts, material scientists, and specialised vendors. By partnering with experts who share a vision of circularity, hotels can develop innovative design solutions that use modular interiors, adaptable FF&E, and closed-loop systems. Collaborative efforts also allow for ongoing R&D that drives forward sustainable practices, enabling hotels to keep pace with advancements in sustainable materials and operational technologies.

Implementing circular economy principles can yield financial benefits while advancing sustainability goals. Here are key metrics for evaluating circular design impact:

1. Waste diversion rate: The percentage of construction and operational waste that is

diverted from landfills, providing a tangible measure of environmental impact.

2. Energy and water efficiency: Tracking reductions in energy and water usage achieved through circular practices, including waste-to-energy and water recycling systems.

3. Lifecycle cost savings: Estimating the cost savings from extended lifecycles of materials and FF&E due to modularity and repurposing, as well as reduced renovation frequency.

4. Guest engagement metrics: Surveys and guest reviews can reveal how sustainability efforts resonate with guests, which directly influences brand loyalty and long-term
revenue potential.

Looking toward the future, the circular economy presents a sustainable framework for hospitality design that extends beyond conventional “green” marketing. Hotels investing in circularity are creating a lasting impact, reducing their environmental footprint, and aligning their brand values with those of their guests.

By adopting circular principles, the hospitality industry is not only satisfying market demand but also setting a precedent for sustainability across various sectors. As these practices continue to be refined and expanded, circular design will redefine the construction, operation, and experience of hotels, showing that a sustainable future is both attainable and indispensable.

We can assist you with integrating a circular economy within your projects, from market analysis, and development appraisals, through to renovation strategy, an approach that maximises the highest and best use of space, aligned with your sustainability goals.

For underperforming hotel assets, the success of a renovation, repositioning, or rebranding project depends on a clear strategy, coupled with an understanding of the operating dynamics of the hotel. A well-planned and executed project not only enhances the guest experience, but also delivers strong ROI.

A renovation assessment, or property improvement plan (PIP), is a core component
of the analysis to define the strategy. This methodology, coupled with a data driven approach, provides the most substantial impact relative to the time and investment required, setting the foundation for successful projects.

Communication and design

The starting point of any successful renovation project is clear communication and a strategic design process. The goal is to create a design that enhances the guest experience while ensuring the renovation stays within budget to achieve the desired ROI. This begins by defining key metrics and data aligned with the primary project drivers and stakeholder
goals, significantly reducing compromise, and speeding up the project timeline. Hotel renovation projects often face challenges at the outset due to isolated budget discussions, without proper understanding of the metrics for success. When these metrics lack relevance to the specific project or property, missed opportunities and delays can occur. It is essential to evaluate whether changes to the asset will yield the required revenues to support ROI post renovation, or repositioning. This approach ensures that the scope is fully aligned with the project’s drivers, and a return on the investment.

The importance of metrics
A renovation assessment is about aligning existing metrics with future targets, leading to an assessed revenue forecast and a solid budget and ROI analysis. In today’s market, metrics such as RevPAR may be less significant for renovation planning compared to say market share or Market Penetration Index (MPI). MPI measures a hotel’s position relative to its competitors, revealing valuable insight to demand, which can help shape future strategies. In addition, gathering data such as guest satisfaction surveys, online reviews, and Net Promoter Scores offers valuable insights into how the hotel performs over time, providing a benchmark for improvement. Hotel operators understand the importance of great guest reviews. Sentiment analysis-assigning positive, negative, or neutral scores to customer reviews - offers a clear view of guest satisfaction. Analysing reviews allows hotels to understand what works, what does not, and how they can improve the guest experience. This insight can directly inform renovation decisions and help build a stronger reputation, leading to increased market share.

Establishing the right metrics The process of establishing metrics should involve a balanced, data-driven approach, considering all relevant factors. An area analysis should determine the highest and best use of revenue-generating spaces, while also factoring in operational efficiencies and potential cost reductions in future capital expenditure or maintenance.

It is vital to explore multiple renovation options through a sensitivity analysis, aligned with the target metrics, to encourage discussion among stakeholders and ensure the best path forward. Key to this analysis is market research: understanding the reasons behind the hotel’s underperformance, or need for change, evaluating market dynamics, demographics, and economic factors. The hotel’s physical condition, its highest and best use scenarios, and its position in the asset cycle are critical to
renovation decisions. The owner’s investment criteria such as investment size, holding period, desired hurdle rate, and risk tolerance will significantly influence the renovation process. These factors must align with the defined metrics and budget to ensure a successful project outcome. Contribution analysis, which examines whether a shift in brand, system, or marketing position could create a positive impact, and therefore also plays an essential role in the review.

Turning insights into action

Once data is collected through research, communication, and analysis, the next step is synthesising the information to develop actionable investment scenarios. The correlation of various metrics can be complex due to their interdependent nature. With proprietary tools and techniques, we
offer dynamic budget definition, renovation assessments, and PIPs, which provide actionable content and reasoned scenarios, driving further discussion and ensuring alignment with project goals. These insights set the stage for successful renovations and guide long-term asset management strategies, fostering a unified vision for project success.

Our methodology also applies to adaptive re-use of existing properties when considering a change of use to a hotel, residential, commercial, or retail asset.

Hyper-personalisation has become a transformative force in the hospitality industry. Guests now expect experiences that are both seamless and tailored to their individual preferences and needs. Using AI, IoT, and data-driven design, the hospitality sector can now deliver personalised guest journeys that evolve and respond in realtime. This change extends beyond service: it focuses on creating spaces that adapt to each guest, enhancing comfort, convenience, and connection.

The power of data and AI

Personalisation in hospitality is not new, but the degree to which data and AI can fine-tune guest experiences is unprecedented. By analysing a wealth of data, from booking history to in-stay behaviour, hotels can identify patterns that allow them to anticipate needs and exceed expectations. The guest experience should begin before the guest even arrives at a property, through pre-stay communication, and tailored requests for the upcoming stay. It is surprising how often these simple initiatives are overlooked in a manual world, but with better systems integration, and more automation of the process, the guest journey can be enhanced. This is where brand loyalty is built.

AI analyses vast data points to deliver actionable insights. Machine learning algorithms
reveal trends from guest feedback and preferences, informing services, amenities, and even interior design. Integrating IoT devices such as smart lighting and climate control, hotels can create adaptive environments that respond to each guest’s preferences in real-time. This shift towards responsive spaces offers not only convenience but also a powerful sense of control and comfort, allowing guests to shape their environment to suit their mood and preferences in an intuitive way. Data-driven design creates hyper-responsive spaces based on guest preferences for a unique experience and at the same time enhances the revenue opportunity for owners and operators alike.

New initiatives

1. AI-Powered recommendations

By leveraging data from previous stays and instay activity, AI algorithms can suggest tailored amenities and services, such as recommending spa treatments based on past preferences or offering curated dining suggestions aligned with dietary preferences.

2. Automated adjustments to wellness

Guest rooms can feature wellness-focused amenities that adjust based on biometric feedback or known preferences, such as circadian lighting systems that shift hues based on the time of day or soundscapes that create a calming atmosphere during rest hours.

3. Enhanced privacy and security

AI systems prioritise data privacy by letting guests control their personal information. This ensures security and allows personalisation while guests retain data control.

4. Integration of devices and preferences

Hotels can use IoT and data-driven personalisation to enable guests to sync their own devices and preferences with in-room technologies. This includes syncing streaming services, playlists, or specific climate settings.

To bring hyper-personalisation to life, a toolkit is essential for hospitality designers and

operators:

1. Behavioural data integration

Collect and analyse data points from various stages of the guest journey, from pre-stay preferences to in-stay behaviour, to build a comprehensive profile that enables proactive and real-time personalisation.

2. AI and machine learning platforms

Use machine learning algorithms to analyse and predict guest preferences, creating a system that can respond dynamically and learn from each interaction to enhance future stays.

3. IoT-enabled infrastructure

Implement IoT devices in rooms and publics paces to support real-time adjustments. Sensors, smart thermostats, and lighting control can create responsive environments that adapt seamlessly to the guest’s preferences.

4. Privacy-first design principles

Prioritise data security and transparency, ensuring that guests have control over their data and can manage the level of personalisation with which they are comfortable.

5. User-friendly interfaces

Design intuitive interfaces that allow guests to easily interact with and control in-room features. Mobile app integration, touch-free controls, and voice-activated assistants can enhance accessibility and user comfort.

As hotels invest in data-driven personalisation, metrics are essential to gauge the success of these efforts:

Guest Satisfaction: Positive feedback on personalisation features can indicate increased satisfaction and the likelihood of repeat visits.

Engagement: Tracking usage patterns of adaptive features - such as smart lighting and climate control - provides insight into which features guests value most, enabling further refinement of the guest experience.

Operational efficiency gains: Automated adjustments reduce the need for manual intervention, increasing efficiencies and at the same time lowering operating costs. These efficiencies can be measured through energy savings and resource management metrics.

Data privacy compliance: Monitoring privacy compliance ensures that personalisation initiatives align with data protection regulations and maintain guest trust, a vital component for long-term success in data-driven personalisation.

The future of hospitality is defined by blending technology and design in ways that are intuitive, respectful, and enriching. As we move forward, hyper-personalised, data-driven design will redefine luxury, comfort, and service, turning every stay into a seamless, unforgettable journey.

By adopting a data-driven approach to conceptualise new hospitality assets, or by adapting existing properties through assessment, we can assist in delivering
exemplar guest service, coupled with efficient operation, reduced operating costs, and increased returns.