One assumption from January that no longer holds true: The strength of the hospitality industry and its ability to continue to grow despite the geopolitical stresses is surprising. Early in the year, we were somewhat tentative in our projections for workload and projects, but we’ve observed something totally unexpected. Hospitality projects, much like the financial markets, are not slowing down or pausing. The demand continues.

More or less optimistic than in Q1and why: We’re very optimistic as we look forward, but we often worry that things may be just a little too hot. There are so many challenges as we move forward, and possibly the most worrisome is the cost of staffing. Building a strong team to service the design industry is very time-consuming and requires careful planning to anticipate where things are going. We think we can project a solid growth ahead, but that can all be derailed in an instant. So, we are optimistic, but careful. We analyze the data monthly.

One quiet shift in guest behavior, design or capital that could have outsized impact: The rise of multi-generational guests traveling together is a huge recent trend. The brands are catching on, specifically in the luxury category. While the couples market continues to thrive, the big news is how the families are traveling together and how the hospitality product is adapting to this shift. Simple one-bay guest rooms, which were the staple of the hotel inventory in the past, are giving  way to multi-bay, multi-level villas designed with a high degree of innovation and fun.

Where teams are most vulnerable right now: We are still trying to understand the impact of AI on the industry. As a company, we talk about this often and we seek new ways to employ the array of AI tools that seem to spring to life every week. So far, instead of cutting costs, the new tools simply give us ways to deliver services and products faster, although not always better. We’re feeling vulnerable, mostly because we just don’t comprehend where this goes.

One must that wasn’t on the radar a year ago: A year ago we believed the hospitality industry was due to cool down. We were very cautious about making major investments to service development projects. We felt that there was a high probability that many developments would be paused or even get cancelled, as there was some chatter about a recession. To our surprise, the opposite has occurred. We are now involved in some of the largest capital investment projects ever. Our firm will soon be 30 years old, and we have never seen such excitement in the industry.