New industry report shows how guest-centric, community-focused models can unlock new revenue and long-term asset value.
A new joint report by Skift and Mews, "Why Hotels and Their Investors Are Leaving Millions on the Table," challenges one of hospitality's oldest assumptions: that success should be measured by rooms sold.
For decades, occupancy rates, average daily rate (ADR), and revenue per available room (RevPAR) have been the industry's benchmarks for performance. But according to the report, this "room-first" mindset no longer reflects how value is created in modern hospitality. Guests today expect experiences, flexibility, and meaningful connections – and hotels that only optimise for heads in beds are missing major opportunities for growth.
"Hospitality isn't just about rooms anymore, it's about relationships," said Matt Welle, CEO of Mews.
"When you shift your mindset from maximising room revenue to maximising guest value, you unlock new sources of income, loyalty, and long-term growth."
The report highlights a growing shift from room-based performance metrics to more guest-centric measures such as Revenue per Available Guest (RevPAG), which captures the total value of each guest interaction, whether they stay overnight, dine, work, or socialise.
Lifestyle brands like Ennismore, for example, now generate over 60 percent of their revenue from non-room sources such as F&B, coworking, and events, proving that experience-driven hospitality can be both more profitable and more resilient.
Forward-thinking operators are reimagining their properties as community spaces that serve locals as well as travellers. Examples include Staypineapple Boston, where a popular neighbourhood bar, the Trophy Room, has transformed the hotel lobby into a lively public hub, and Paradise Resort Gold Coast, which increased revenue and satisfaction by packaging experiences such as water-park access and spa bookings around unified guest profiles.
Nearly one-third of hotels on the Mews platform now offer additional bookable services such as parking, coworking, or memberships. Between 2024 and 2025, the number of hospitality businesses using Mews Spaces, which powers these non-room bookings, nearly doubled from 1,179 to 2,223. In the same period, reservations rose by more than 230 percent, highlighting the industry's accelerating shift toward diversified, experience-led revenue.
Traditional KPIs capture only a fraction of a property's potential. By focusing on the total guest journey and connecting operational, marketing, and financial systems, hotels can better understand overall guest value, deliver more personalised experiences, and tap into new revenue streams.
Technology underpins this transformation. Integrated solutions make it possible to anticipate guest needs, personalise experiences, and manage multiple revenue sources seamlessly.
The report features Swiss Hotel Apartments, which connects guest data across departments to deliver tailored service across 48 properties, and Strawberry, which uses flexible systems and AI tools to streamline check-in, housekeeping, and communications while keeping service personal.
"Technology doesn't replace hospitality, it reveals it," said Richard Valtr, Founder of Mews. "When digital systems handle the complexity, staff have more time to focus on what guests truly remember: feeling seen and cared for."
More news here.
