“Engagement Drives Returns.” The rallying cry of NYU’s 47th‑annual International Hospitality Investment Forum (IHIF) — re‑branded this year as IHIF Americas — echoed through the New York Marriott Marquis from 1–3 June.
Deals & Development – Conversions (Still) Trump New‑Builds
Developers from Related Cos. and Stonebridge Capital highlighted a structural pivot to adaptive reuse and select‑service conversions while construction costs hover 18–22 % above 2019 levels.
- Supply pipeline shift. 42 % of projects announced on stage were conversions of offices or obsolete full‑service assets — double the share reported at the 2024 forum.
- Brand buy‑in. Marriott’s CEO Tony Capuano noted conversions deliver (~20 % faster openings) and require less key money.
“2025 is the year we stop worshipping the crane and start celebrating the scaffold.” — Jeff T. Blau, Related Companies
Brand × Residential – Hospitality Meets Housing
IHIF introduced its first Brand × Residential (BxR) Mini‑Summit, convening 100 specialists in branded residences, co‑living and extended‑stay hybrids.
- Financial uptick. Branded residences command 17–24 % sale‑price premiums and achieve faster absorption.
- Operating model evolution. New management agreements share upside through revenue participation rather than fixed fees, aligning operator–developer interests.
Tech & Operations – AI as a Staffing Multiplier
Across six tech‑track sessions, speakers moved the AI discussion from hype to property‑level pilots:
- Predictive maintenance: Hilton reported a 12 % downtime reduction using AI‑driven asset‑management tools.
- Demand shaping: Wyndham showcased an LLM‑powered revenue engine that lifted RevPAR by 3 % in A/B pilots.
- Labour efficiency: An East‑Coast portfolio using GPT‑based concierge chatbots re‑deployed one FTE per 150 rooms to higher‑touch tasks.
Three Take‑aways for Mid‑2025 Strategy Decks
- Prioritise conversion‑ready assets in urban cores where office distress creates entry points at a 25–30 % basis discount.
- Leverage branded‑residence premiums – BxR deals fetch 17–24 % higher PSF sale prices and accelerate absorption.
- Embed AI use‑cases in pro forma — early adopters are already realising 3–5 pp NOI boosts.
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