While location, location, location remains central to the success of a hotel, as business travel patterns and behaviors change, flexibility and choice are coming on strong. Hotel operators are making changes to existing buildings, developing brands that cater to the experiences today’s guests want and acquiring existing brands that were created to target a new kind of traveler.
Over the past few years and especially post-COVID, “We’re seeing a shift in business travelers toward more productive, sustainable and mindful travel behaviors,” says Suzanne Neufang, CEO of the Global Business Travel Association. According to GBTA data, she says, 40 percent of business travelers prefer trips of three-to-five days, while only 5 percent prefer single-day trips.
Additionally, many travelers are blending work and leisure, with nearly 60 percent saying they combine the two as much or more than they did several years ago.
To meet those changes, hotel operators are adapting. Sophie Hulgard, chief sales officer for Accor notes that to keep up with the changes, the company last year created its Global Leadership Council comprised of its top 30 corporate clients and representing 2.7 million travelers.
This is a good base, she says, to ask: “What do you see as the important changes coming up?”
“We’ve been talking about business travel changing for many years,” says Hulgard, “but now it really is.” One way it’s changing, she says, is that customers are traveling first for business, then extending their trips and perhaps staying in a different place or on a different account.
Hilton’s 2025 Trends Report found that 1 in 4 business travelers expect team building to be their reason for hitting the road next year, says Christiane Cabot Bini, vice president, global business travel sales. This has given rise to a new portmanteau: “Frolleagues” – friends who are also colleagues. Hilton’s report also uncovered that 25 percent of global respondents plan to travel more for – another two-word blend – bleisure.
While there has been movement back to the office, says Zach Demuth, global head, hotels research for hospitality consultancy JLL, there is a prevailing 3.5 day in-office work week. That means individuals will take advantage of the additional days by staying in a hotel and working from their rooms on a Friday or Monday.
Big Picture Strategies
As a result of all these disruptions, hotel operators are taking three “macro” approaches to the shifting landscape: Reconfiguring current spaces, developing new brands internally and acquiring existing brands that might fit prevailing trends.
On the reconfiguration front, says Demuth, rooms are getting bigger where logistically possible, with dedicated work spaces so guests don’t have to work in bed. In the lifestyle segment, he says, hotels are changing up their lobbies and public spaces to make them more appealing to locals in the community who come to work there. While a hotel is not a coffee shop, says Demuth, “it has WiFi, coffee, and there’s no reason not to try to monetize that.”
Entire legacy brands are transforming to meet current needs. Kristofer Carlson, area managing director for Aimbridge Hospitality, says this shift was very much reflected in the recent extensive renovation at Sheraton Grand Nashville Downtown, which is managed by Aimbridge. Sheraton, says Carlson, has taken the brand’s emphasis on business and leisure travel and made it work for guests, introducing new studios (small meeting spaces), booths (soundproofed alcoves for making calls, working) and private and communal gathering spaces that fit the needs of today’s traveler. Anchoring the lobby experience is &More by Sheraton, a concept that combines a bar, coffee bar and market with an all-day menu.
And in a move targeted to the local culture, the former coffee bars at the Sheraton Nashville, says Carlson, are now two karaoke studios that function as workspace during the day and “inspired music spaces perfect for breakouts or outings with friends by night.”
Similarly, a recent announcement from The Shay, a hotel in Culver City, CA, says the property has transformed its lobby into the “Living Room of Los Angeles,” with free high-speed WiFi, a reading nook by a fireplace and charging outlets at a communal table. Rather than “grind through workdays in crowded coffee shops,” according to an announcement from the hotel, “visitors can spread out in the welcoming ground floor space at The Shay, and perhaps visit the Game Room for a round of Super Smash Bros or Mario Kart between meetings.”
Wendy Ferrill, vice president-worldwide sales for BWH Hotels, explains, “Travelers do enjoy communal spaces, which is why some of our newer brands, like Aiden, include spacious lobbies where work and authentic interactions can take place in a cool, comfortable environment.”
BWH is also seeing that upgraded health and wellness facilities are very much appreciated, says Ferrill, along with quality, high-speed Internet and larger TVs. In general, she says, “Travelers want to enjoy the comforts of home, and we take that to mean both the physical space, as well as a warm reception when travelers walk through the doors.”
As bleisure continues to grow, says Ferrill, walkability, accessible public transportation, food delivery access, bike/scooter shares and options for transportation provided by properties are high priorities.
Many hotels now design rooms that offer both work and relaxation spaces, says Apostolos Ampountolas, assistant professor of hospitality finance at the Boston University School of Hospitality Administration. Some provide modular furniture or customizable layouts to make rooms feel more versatile and conducive to work.
Partnerships & Acquisitions
The acquisition of often trendy brands continues unabated. As Ampountolas notes, Marriott acquired the City Express brand portfolio to expand in the extended-stay segment; IHG took on Kimpton Hotels to align with bleisure developments; and Hilton’s purchase of Graduate Hotels targets younger travelers seeking lifestyle-oriented stays. These strategic moves, says Ampountolas, reflect a broader push within the industry to cater to the hybrid preferences of modern travelers.
Accor, says Hulgard, is acquiring brands that offer what travelers are looking for – like Our Habitas, a “sustainability forward” luxury concept. “Not only are travelers and travel managers looking for an ROI on investment,” she says, “they are looking for a return on carbon use and on experience, all of which are leading the trend toward more flexible lifestyle brands.”
Beyond acquiring and creating brands, partnerships are another way to add options. For example, BWH Hotels has announced its entry into the glamping trend by adding Zion Wildflower Resort at Zion National Park to its portfolio, the first of many glamping resorts to be included in the company’s lineup.
Similarly, Cabot Bini notes that Hilton recently partnered with AutoCamp, an outdoor hospitality provider, to offer travelers a blend of outdoor adventure and boutique hotel experiences near iconic national parks. Hilton also launched a strategic partnership with Small Luxury Hotels of the World (SLH) earlier this year, which brings road warriors more ways to book, earn and redeem points with Hilton in new luxury travel destinations.
Business travelers, says Hulgard, “have said they wanted to feel like leisure travelers. They don’t want a boring room and boring service. They want to be treated like they can get any service they want.”
Modern Meetings, Targeted Tech
Of course, a large percentage of business travel involves conferences, and hotels are responding to seismic changes on that front as well. Working with its GLC, Accor recently sent a survey to 9,000 travelers in nine countries asking them what they expect in meetings and events. The number one response – to the surprise of Accor – was more comfortable seating. They also wanted engaging activities during their sessions, healthier food and natural light, including more time to spend outside of the meeting room. In fact, 30 percent said they want more time outside when they don’t have to be using technology.
The Shay’s dedicated meeting spaces provide a serene environment, says Adam Edelman, general manager, with floor-to-ceiling windows that allow for soft, natural light, creating a calm and quiet ambiance. This setup is ideal, he says, for those who prefer a more peaceful setting for their meetings or brainstorming sessions, helping guests focus without distractions.
While technology like AI has been considered by some to de-personalize hotels, Hulgard says, “We need to keep things human and one-to-one, but with the help of technology.” That might mean, she says, communicating with the front desk via message rather than waiting on the phone for someone to answer. It can also mean an intelligent building with programmed elevators.
At Hilton, says Cabot Bini, “our goal is to simplify the complex and digitize the simple. Whether it’s improving booking options or enabling real-time messaging platforms, we are always exploring the ways that big data and AI can enable our team members to meet the needs of our guests.” By taking friction out of routine processes, says Cabot Bini, “technology allows staff to focus on delivering warm, personal hospitality.”
AI-powered tools, says Ampountolas, provide instant responses to frequently asked questions, contributing to better engagement and enhanced customer service. AI-powered systems can send tailored messages to guests before arrival, offering information on local events, weather updates, and dining recommendations. Moreover, he explains, AI facilitates collecting and analyzing guest feedback, helping hotels understand satisfaction levels and areas for improvement. This process enables hotel management to refine communication strategies and service offerings based on real-time guest sentiment.
Technology is changing the in-room experience as well, says Neufang, who notes that AI-powered devices are able to make changes to temperature and lighting or place orders for room service. “This is one of the most exciting areas of change in our industry – and a space to watch,” she says.
Community & Flexibility
All of these changes seem to revolve around several pillars, including community, sustainability and wellness. Hilton’s 2025 Trends Report found that 62 percent consider communications about a hotel’s sustainability programming to be important and 73 percent agree it’s important to minimize their environmental impact while traveling.
Similarly, wellness is surging in demand. Witness Hyatt’s announcement that it will provide loyalty program points for guests who complete Pelotons workout sessions.
Guests want to feel like they are in a place integrated in a community, says Hulgard, adding: “They want to be part of something. Making hotels hospitable for locals and using community to make hotels come to life has become a top priority.”
Flexibility, says Hulgard, brings choice, and Accor is open to even more brand acquisitions if they diversify the options. “We want to offer choices depending on the purpose of the trip,” says Hulgard, “because we have different needs on different trips. We don’t cater to you as a person. We cater to you depending on the purpose of the trip.”
In the end, some aspects of hospitality will resist change. Says Ferrill: “Traditional tastes will continue into the future, and that is why we see it as critical to provide a full suite of options for every traveler – despite age, preferences, travel type or desired experience.”
Image: Sheraton Grand Nashville Downtown
