HVS Webinar: How Will Hotel Operating Models Evolve and Change?

On Wednesday 15 July, at the most recent webinar co-hosted by HVS with Bird & Bird and The Leaders’ Journey, senior figures from across the hotel sector examined how operating models are evolving toward 2030, highlighting the need for flexible ownership and contract structures, credible guest experiences and intelligent use of AI and data.

Opening the event, Chris Sheppardson, CEO of The Leader's Journey, set the discussion in the context of the “fourth industrial revolution”, noting that while hotels historically led physical innovation, they have been slower to adapt to digital transformation and AI. The challenge, he argued, is to modernise operating models without losing the human core of hospitality.

Ronen Nissenbaum, CEO Western Europe and US Development for Leonardo Hotels, then described the sector’s long shift from asset‑heavy ownership to asset‑light franchise and management platforms, while rejecting the idea of a single “winning” model. “Lease, manage or own – they’re no longer strategies in themselves. They’re tools. The edge is the freedom to switch between them,” Nissenbaum said.

Our second speaker, Joe Pettigrew, group chief commercial officer of L&R Hotels, outlined how AI is reshaping demand and operations across L&R’s portfolio of nearly 130 hotels. As more travellers use AI tools to plan trips, he argued the industry is moving from distribution to recommendation. Where success once depended on visibility in long OTA and search lists, AI now responds to detailed prompts with a small shortlist of hotels that best match specific needs, testing marketing claims against evidence from room types, facilities, F&B and guest feedback.

“We’ve moved from an era of ‘getting on the list’ to an era of ‘deserving the recommendation,” Pettigrew said. This, he suggested, effectively inverts the traditional funnel: “Operations are becoming the new distribution. Everything you actually do for guests becomes your top‑of‑funnel.”

In a panel moderated by Russell Kett, Chairman of HVS, panellists stressed that technology will not replace hospitality’s human core. “AI will handle the coordination; humans should handle the moments guests remember,” said Ashley Krais, Chief Financial Officer, Europe for Westmont Hospitality.

Bettina Graef‑Parker, Managing Director at Aareal Bank, underlined adaptability and alignment between owners and operators as critical, favouring structures where both share performance risk and can respond quickly to new revenue streams.

Matthew Vance, Senior Associate, Bird & Bird, added, “In line with the trend towards flexibility, there will be increasing pressure to franchise at the luxury scale as owners and investors become more sophisticated. We’re likely to see a loosening of the reins on some of those prized brands, and with that a rise in ‘manchise’ structures over time.”

From the brand side, Guido Fredrich, Vice President, Development Luxury & Lifestyle at Hyatt Hotels, emphasised the growing importance of F&B as an experience engine, especially in luxury and lifestyle: “In lifestyle and luxury, F&B is no longer an afterthought; it’s the front door to the brand.”

Guy Pasley‑Tyler, Co‑CEO, Archer Hotel Capital, identified the squeeze on the mid-market offering: “At both ends of the spectrum you can feel an arms race. Luxury has powerful macro tailwinds, while budget can feel like a race to the bottom as we strip out services. It leaves very little room for undifferentiated product in the middle.”

Across the discussion, panellists converged on adaptability and experience as the defining characteristics of the most successful 2030 operating models—technology‑enabled but anchored in distinctive, human‑centred guest experiences that stand up to scrutiny by both algorithms and travellers.