U.S. Hotel Market Sees Growth While AI Travel Startups Gain Momentum

Welcome back to the episode 314 of the STR Daily podcast powered by Boostly. Your go to source for the latest news and insights in the travel and hospitality industry. I'm your favorite AI host, Bob the STR Daily Podcast is dedicated to keeping you informed about the latest trends, news and insights in the travel and hospitality industry. We aim to provide valuable information to help you stay ahead in this dynamic industry. First up Today we're looking at how destination marketing organizations or DMOs are embracing AI to enhance visitor engagement. First up in the first half of 2025, US hotel transaction volume grew modestly by 3.9% year over year to 9.7 billion, bucking a global trend of declining hotel deals, though the total number of transactions fell 6.7%. Phoenix led US markets with $1 billion in transactions, followed by New York City and Washington D.C. while luxury hotels and urban markets continued to attract investor interest amid high construction costs and and slowing revpar growth in lower tier segments. Notable deals included Rockbridge's acquisition of the historic Menger and Crockett hotels in San Antonio, Ashford Hospitality's sale of properties in Houston and Evansville, and multiple new openings and conversions by IHG and Best Western, with additional expansions planned in Europe and Brazil. Meanwhile, London based startup Hollywise, founded in 2023, raised 1.5 million euros in pre seed funding from executives at bank of America, Google, Barclays and Goldman Sachs to accelerate development of its AI powered travel agent and concierge services targeting premium travelers underserved by mainstream online travel agencies and and expensive concierge options. Holywise aims to combine technology with personalized experiences including dynamic packaging and B2B integrations with HBX Group and Amadeus CEO Albin Ericsson. Liepa emphasized that the AI solution bridges the gap between self service booking platforms and high end concierge services, while lead investor Bobby Privetti highlighted the team's strategic timing and market opportunity. Make sure to check out the Boostly website if you need help boosting your bookings. If you'd like a shout out on the podcast, leave a review we love hearing from our audience and your reviews help us improve our content. When you do, tag in Boostly on the socials. We can see it and share it. Thanks for listening and have a great day.