The (Near) Future of Hotel Travel Is Upon Us

The new Hotel June, situated in the beachside Playa Vista area of Los Angeles, was scheduled to launch last spring. With 250 guest rooms, two restaurants, a pool, and ample outdoor communal space, it aimed to be a trendy, vibrant, and relatively budget-friendly choice for visitors to LA's west side. This hotel also marked the debut of a completely new brand from Proper Hospitality, which is already recognized for its upscale properties in cities like San Francisco and Austin. However, plans did not unfold as expected.

Like restaurants, the hotel sector has faced significant challenges due to COVID-19. Major hotel chains have reported staggering losses—Hyatt incurred a loss of $703 million in 2020, while Hilton's losses reached $720 million, leading to permanent cost-reduction strategies. A November survey by the American Hotel & Lodging Association revealed that over 60 percent of hotels were operating with less than half of their usual staff. As of early November, hotel occupancy rates in major urban areas had dropped to 34 percent, down from nearly 80 percent the previous year. Given the current situation—with plexiglass barriers, masks, sanitizer, plastic-wrapped remotes, and limited housekeeping options—staying at a hotel hardly conveys a sense of “vacation.” This drop in business has pushed hotels to innovate, offering new perks that often feel like consolation prizes for enduring the pandemic's realities.

Hotel June eventually opened its doors in June 2020 after LA eased some initial COVID restrictions. Brian De Lowe, president and co-founder of Proper Hospitality, noted, 'One advantage of launching a hotel brand during COVID, rather than having it already established, is that we could completely rethink and redesign every aspect of the hotel's operations with the pandemic in mind.' They also needed to devise a sustainable operation that could endure significantly reduced business.

Rather than targeting out-of-town visitors, who typically account for three-quarters of hotel guests, Hotel June formed partnerships to engage its local community: offering rooms for daytime rental and day-rate packages that included outdoor workouts and pool access. 'We focused on staycation and daycation packages, ensuring that even if people weren't staying overnight, they could still enjoy an experience away from home,' says De Lowe.

A year into life during the pandemic, almost any getaway feels like a breath of fresh air, even if it comes with a price tag. Many hotels have revived the day rate, transforming overnight accommodations into daily workspaces, often paired with unique and enticing perks. At the Innside (stylized INNSiDE) by Meliá in New York, guests can bring their furry friends along for the day—or even stay overnight—while enjoying in-room amenities like dog beds and cozy blankets. The hotel’s “day stay” offering, which debuted last year, has recently been updated to welcome pets. Dogs can join their owners for dinner on the heated patio, and they now have their own menu options. For $55, they can select between salmon or grilled chicken served with steamed vegetables, lemon, and dessert. An extra $3 gets them a chef-prepared peanut butter dog biscuit.

As Jeff Hong was preparing to move out of his Brooklyn apartment last summer, he and his girlfriend decided to turn the occasion into a mini-vacation. They booked a stay at 50 Bowery, a boutique hotel in New York’s Chinatown owned by Hyatt. For two weeks, they played tourists in Manhattan, enjoying a suite with a view of the Brooklyn Bridge for under $100 per night. Hong, who typically isn't loyal to any hotel chain, paid in cash rather than with points. He found the rate irresistible and the experience delightful. “They provided us with credits for the rooftop bar, where everything was served outdoors, offering snacks and treats,” he recalls. While the hotel had paused regular room service, they provided takeout from their restaurant, the Crown, and partnered with local Mytouries to offer complimentary breakfast up to a certain dollar amount. “Since their restaurant was running limited hours, they sourced breakfast from nearby diners,” Hong explains. “Honestly, it was fantastic.” He was also surprised by the number of out-of-town tourists taking advantage of reduced COVID rates to explore New York for the first time.

However, there’s a new clientele making an even bigger impact: the work-from-hotel crowd. Beach resorts now offer Wi-Fi-equipped cabanas for remote work. Families visiting Pittsburgh’s Hotel Monaco, a Kimpton property, can enroll their school-age kids in a remote learning package, complete with a desk, school supplies, a bagged lunch, and treats like mini-Oreos and fruit snacks. For an additional $75, parents can reserve an adjoining room for the day, providing enough space for both kids and parents to work separately. This offering is supported by a chief virtual learning officer who helps kids get set up with a desk and reliable Wi-Fi for their school day. Greg Goffin, the hotel’s sales and marketing director, notes that a handful of families have taken advantage of this package so far. “I give the parents a password based on their child's name for the Wi-Fi. The kids love it when they discover their name is the password,” he adds. But truly, “The snacks are the highlight.”

Outdoor space has become increasingly important. Hotels with open-air features are making sure potential guests are aware of them. Margot Kong, owner of Journeys Unparalleled, a luxury travel consultancy specializing in family travel, notes that marketing has changed. Hotels and resorts are highlighting rooms with outdoor areas and standalone options like cottages, villas, and casitas. “At the very least, people are requesting exterior entrances,” she states. “Outdoor spaces, private gardens, and separate entrances are now top priorities for guests.”

In milder climates, some hotels have adapted their outdoor areas, moving spa services and gatherings outside. Guests can often book socially distanced time by the pool. During a summer trip to California’s wine country, local traveler Allison Ball and her husband were assigned poolside loungers for the duration of their stay. “With designated seating at the pool, it was easy to space out and leave a towel without worry,” she says. “The manager was incredibly attentive, especially by the pool. He gave us a little tour, explained their policies, and went above and beyond to discuss the changes they implemented. That alone was much more thorough than a typical check-in experience.”

Not every solution during COVID is about extravagant packages. During a recent stay at Five Pines Lodge in Sisters, Oregon, Marzia Della Corte appreciated receiving a breakfast box tailored to her plant-based diet. However, what truly excited her was the provision of a trash can liner for each day of her visit. “We could simply place our trash outside the door, and it would magically disappear,” she recalls. “Without regular room cleaning, having the option to easily dispose of trash was incredibly helpful.” She noted that daily trash collection wasn’t a common service at other places she had visited over the past year.

Despite showing signs of early success, Hotel June is not immune to the challenges faced by the hotel industry. It remains understaffed, with its employee count in the tens rather than hundreds. De Lowe reports that properties within his company’s portfolio have experienced revenue declines ranging from 50 to 100 percent, depending on local regulations. Nevertheless, he notes that the remaining team is working harder than ever to adapt to evolving regulations and adjust their strategies for sustainability.

Hoteliers emphasize that these adjustments are only temporary. The hotel industry generally views COVID as a short-term issue. They’re not initiating major renovations or permanent changes with a long-term pandemic perspective. While the pandemic has accelerated the adoption of technologies such as contactless check-in and keyless room access, many say these innovations were already on the horizon. Proper Hospitality has multiple new projects in the pipeline, and according to De Lowe, “We’re not designing with COVID in mind at all. By the time any hotel designed today opens, the pandemic should be completely behind us—or we have bigger issues.”

Kristen Hawley covers restaurant operations, technology, and the future of the industry from San Francisco.

Carolyn Figel is a freelance artist based in Brooklyn.