
Markets in Focus :: Hospitality Q1 2024
February 21, 2024
Restaurants and Drinking Establishments
In the dynamic restaurant industry landscape, evolving consumer preferences and technological advancements continue to shift the space. Today, while consumers are actively seeking healthier, globally inspired meals crafted from high-quality ingredients, the industry is witnessing a surge in off-premises dining and a rapid embrace of digitalization to meet the diverse needs of customers, driving more delivery and drive-thru business than ever before. With this continued shift, premises liability is predicted to continue being a lower risk frequency while there is still a rise in nuclear verdict severity that can be a challenge for catastrophe claims such as liquor liability and general slip/fall exposures.
Hotels and Casinos
The continued return of hotel occupancy paints a compelling picture of resilience. With an impressive 29.2% year-over-year growth in December, San Diego spearheads this resurgence, closely followed by San Francisco at 21.5%.¹ This positive momentum is echoed across the entire U.S., with an increase just under 5% in ADR growth from December 2022.² In the past two years, the hotel industry’s primary challenge has shifted from attracting customers to finding and retaining staff. In response, hotels have worked to enhance pay and benefits for workers but still lack adequate staffing, leading to challenges in training for new hires and delivery of a consistent guest experience, all of which can translate to higher risks in liability, workers’ compensation, and even property losses due to inadequate training on what to do in the event of a fire or water damage event.
Learn more in the latest Hospitality Markets in Focus.
Resources and References
- 1 Perkowsky, A. (2024, January 11). Knowland: San Diego leads in group volume growth in Dec. Hotel Business. hotelbusiness.com/knowland-san-diego-leads-in-group-volume-growth-in-dec/
- EHL Faculty. (2024, January 10). 10 hospitality trends for 2024: Crafting tomorrow’s experiences today. hospitalityinsights.ehl.edu/hospitality-trends-2024-crafting-experiences
The views and opinions expressed within are those of the author(s) and do not necessarily reflect the official policy or position of Parker, Smith & Feek. While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it.
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