Daily Hospitality Digest | May 27, 2025

Highlights

• Vision Hospitality Group breaks ground on a dual-branded Hilton Hotel in Chattanooga, Tennessee, as part of a major mixed-use development
• A-1 Hospitality Group starts construction on a new 163-room AC Hotels by Marriott at the Three Rivers Convention Center in Kennewick, Washington
• U.S. tourism industry faces a projected $12.5 billion revenue loss in 2025 due to declining international and domestic travel demand
• Insurance premiums continue to rise for hotel management companies, making risk management and coverage renewal more challenging
• Casetta Group opens Hotel Willa in Taos, New Mexico, emphasizing sustainability, local culture and community engagement

1. Development and Openings

The hospitality industry is seeing a wave of new hotel projects across the U.S., with major brands expanding into high-growth markets.

New Dual-Brand Hotel Breaks Ground in Chattanooga as Part of Expansion

Vision Hospitality Group has commenced construction on a dual-branded Hotel, featuring Home2 Suites by Hilton and Tru by Hilton in Chattanooga, Tennessee. The project is part of a larger 10-acre mixed-use development, expected to open in Fall 2026.

The Hotel will comprise 150 guestrooms designed for both extended-stay and transient guests, supporting diverse traveler needs. The development will include renowned restaurants and retail concepts with direct access to I-24, close to downtown Chattanooga and Lookout Mountain.

Guest amenities will include a resort-style outdoor pool with water features, a slide and a poolside bar, complemented by indoor features like a lobby bar, modern fitness center and enhanced breakfast options.

• Tenants: 82 Home2 Suites, 68 Tru by Hilton Suites
• Expected opening: Fall 2026
• Location: Chattanooga, Tennessee
• Size: 10-acre development, with retail & restaurants

Groundbreaking of New AC Hotels by Marriott in Kennewick, Washington

A-1 Hospitality Group, a family-owned hotel management and development company, has announced the groundbreaking of a new 163-room AC Hotels by Marriott located at the Three Rivers Convention Center in Kennewick, Washington.

The hotel will operate under franchise ownership by A-1 Three Rivers Hotel, LLC, with management handled by A-1 Hospitality Group.

Here are some highlights of the five-story property.

• Hotel rooms: 163
• Amenities: Indoor pool, rooftop bar, meeting rooms
• Location: Three Rivers Convention Center

Owned by Marriott International, AC Hotels currently boasts over 175 Hotels worldwide. The project aims to enhance Kennewick’s hospitality offerings and bring a premium lifestyle option to the region.

Casetta Introduces Hotel Willa in Taos, New Mexico

Casetta Group has opened Hotel Willa, a 50-room boutique retreat nestled at the edge of Taos' historic district. The property reimagines a 1960s adobe-style motor lodge with contemporary design elements.

• Location: Downtown Taos, New Mexico
• Design: Earth-toned minimalism with adobe details
• Features: Artist residency, gallery and a signature restaurant
• Partnerships: The Paseo Project, SOTE and local artisans

Emphasizing sustainability, Hotel Willa collaborated with Taos Initiative for Life Together to build walls from recycled plastic waste.

The Hotel offers immersive experiences such as a photography gallery, outdoor gatherings and cultural programming, establishing itself as both a community hub and a destination that celebrates local heritage.

Collared Martin Hospitality Launches New Boutique Hotel Brand

Collared Martin Hospitality (CMH) has unveiled a new lifestyle and luxury hotel management company focusing on boutique properties in leisure destinations.

Led by CEO Steven Rubin, the company is starting with properties in Nantucket, Martha’s Vineyard and the Hamptons.

• CMH operates the Faraway brand and manages Blue Flag Capital’s portfolio, which includes over $1 billion in real estate assets.
• The company prioritizes service, sense of place and guest experience, aiming to redefine boutique hospitality through exploration and loyalty.
• Strategic partnerships with Blue Flag Capital fuel growth, while Charlotte Hutchings joins as Head of Brand and Creative to shape the Faraway brand's storytelling and guest connection.

2. Operations and Management

Hotel management firms are expanding regional operations and forging new partnerships to improve performance and asset value.

TPG Hotels & Resorts To Manage New Marriott Properties

Wyndham Hotels & Resorts announced its partnership with Verge Management LLC to oversee a portfolio of five Marriott-branded select service Hotels located in Oklahoma, Louisiana and Arkansas. This strategic expansion strengthens TPG’s presence in the south-central US.

• The partnership includes operational oversight and hands-on leadership, aiming for long-term asset performance and operational excellence.
• Tim Muir, TPG's Chief Development Officer, expressed enthusiasm about integrating high-performing hotels into their portfolio.
• Malik Kheraj, President of Verge Management LLC, noted the collaboration brings deep industry expertise and will enhance hospitality investment value across the region.

3. Trends and Challenges

Rising insurance costs and tightening coverage are putting pressure on hotel operators to rethink risk strategies in 2025.

Insurance Market Challenges for Hotel Management Companies in 2025

Insurance premiums in the hospitality sector have continued to rise in 2025, especially for older properties and those with higher risk profiles.

Operators are leaning heavily on risk management strategies as insurers tighten coverage and increase costs.

• Main cost drivers: natural disasters, ADA compliance and trafficking-related claims
• Insurers are cutting coverage limits, raising deductibles and requiring more collateral
• Brokers and franchisors are key to navigating renewals and controlling long-term risk

4. Travel and Tourism

U.S. tourism is facing a critical downturn in 2025, with significant losses driven by waning international and domestic travel.

U.S. Tourism Industry Faces "Perfect Storm" in 2025

As Memorial Day weekend marks the start of summer travel, early signs of decline are evident across the U.S. tourism sector, with a notable drop in international and domestic travel demand.

A Finnair flight into Los Angeles, nearly empty, exemplifies broader visitor hesitations amid economic and operational challenges.

The key figures below reveal the depth of the crisis.

• Projected revenue loss: $12.5 billion in 2025
• International travel decline: 7% from 2024, 22% from 2019
• Major regional impact: NYC expects $4 billion fewer tourism dollars, California 9% fewer visitors
• Domestic travel boost: +3% amid economic caution

5. Food, Beverage and Entertainment

Luxury resorts are elevating guest experiences with new culinary, bar and gaming concepts that blend tradition with innovation.

New Gaming, Dining and Bar Experiences at Borgata Hotel Casino & Spa

ICE Atlantic City has introduced a range of new amenities at Borgata, spanning a 25,000-square-foot gaming floor featuring 51 tables, private salons and a dedicated Asian gaming space.

The resort also unveiled Noodles, a Pan-Asian Restaurant and a revamped B Bar, emphasizing luxury and exclusivity.

• The Asian-inspired gaming area, designed by KNA Design, features vibrant reds and golds, five private salons with high-limit tables and rare spirits like Shibui 23 and Yamazaki 18.
• Enhancements include a multilingual host team, electronic credits and wireless charging tables.