CHICAGO—Yesterday in GlobeSt.com, Bob Habeeb, the chief executive officer of First Hospitality Group, Inc., a Rosemont, IL-based hotel management, acquisition and development company, was sharing his views on the latest trends in the Midwest hospitality market. He discussed subjects such as where RevPAR might be headed. Today he turns to how the millennial generation will change hotels, and what Trump's presidency might mean for the industry.

Q: Moving away from the numbers for a minute, let's talk about some of the trends you see having an impact on the hotel industry at the moment.

A: One of the most interesting things to me personally—and I think something that is going to be fascinating to track going forward—is the rise of what feels like a new category of hybrid hotel properties. These are hotels that are somewhere in the sweet spot between select-service and full-service, a concept that some are referring to as “quasi-service” hotels. These are hotels that may be select service by brand nature, but they also include features more commonly found in a full-service property. That might be a destination restaurant, a rooftop bar, or a compelling bar or lounge space. The goal is to leverage that headline attraction to deliver an experiential buzz that helps establish a memorable and defining sense of place.

Q: Has your firm done any work of this kind?

A: Our Hilton Garden Inn Louisville Downtown Hotel, a new Renaissance by Marriott, formerly the Toledo Grand Plaza Hotel, opening soon in Toledo, OH, and our upcoming hotel at Chicago's famous Navy Pier are all great examples of how we are executing the quasi-service trend. These dynamic F&B elements and experiential features are particularly important when it comes to appealing to millennials, who continue to demand that something extra in their hospitality experience.

Q: So millennial calculus still factors into the thinking of hotel owners and operators?

A: No question. And it's not just as guests! Millennials are an increasingly important part of the hospitality workforce these days, and that infusion of young talent is the beginning of a real generational shift in the industry. Millennials will represent approximately half of the overall workforce by 2020, and service industries are a popular choice for younger millennials in particular. The millennial influence is already being felt, from new technologies to new perspectives. As more millennials rise to management positions, I think we will finally see the glass ceiling fully shatter, as well as adding some much-needed diversity to an industry that has been lacking at times in that department.

Q: Finally, without getting too political, I'm curious as to your thoughts on the impact of the 2016 election and a Donald Trump presidency—do you foresee any downstream impact on the hospitality sector?

A: Well there's no doubt that President Trump is something of an unknown. I'm cautiously optimistic that the market response thus far to the Trump administration seems to be fairly positive, but I'm also aware that changes in economic or immigration policy could have a profound impact on the hotel industry. No matter where you sit on the political spectrum, it's clear that these are uncharted waters, and it will be fascinating to see how what happens in Washington filters down and impacts the hospitality marketplace in the Midwest.

Hilton Garden Inn

Q: Moving away from the numbers for a minute, let's talk about some of the trends you see having an impact on the hotel industry at the moment.

Q: Has your firm done any work of this kind?

Q: So millennial calculus still factors into the thinking of hotel owners and operators?

Instant Insights /

New Hybrid Hotels Hitting the Market

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