As you probably know by now, I am, to my core, a philosopher. I enjoy the intangible, the abstract, and spend much of my time in that realm.

However, there are times, when the other side of me takes precedent. She is from the 80s, a shark in Swiss finance who made it to the top of the food chain.

Today’s edition of The Reservation™ is brought to you by her.

Welcome to The Reservation, a tPH letter including long-form analysis and cultural criticism of the hospitality industry and relevant trends.

In this letter: Wall Street is lusting for asset-heavy businesses, AI is coming for global hotel companies, giving the hospitality industry a facelift.

I believe we are currently living, experiencing some version of the dot com bubble. Software companies have disproportionately dominated portfolios and been the golden children of finance bros.

But the winds of change are blowing, my friend, and the direction is favorable for the hospitality industry 🏳️🏳️🏳️

Financial Times recently wrote that Wall Street is experiencing AI anxiety and thus gravitating towards HALO stocks, standing for Heavy Assets, Low Obsolescence.

Business models that are built on human or digital capital (software, consulting, asset management, etc.) are threatened to be abolished, made obsolete, by AI.

Now, suddenly, after asset-light has been all the rage, markets are repricing companies whose value is derived from physical assets that are expensive (and more importantly impossible for AI to) replicate. The big boy category of power grids, pipelines, utilities, transport infrastructure, and critical machinery.1

Since the start of 2025, Goldman’s basket of capital-intensive HALO stocks has outperformed capital-light stocks by roughly 35%.

Considering this, oh boy do I have the pitch for you.

The “asset-heavy” predicament in hospitality

For the past three decades or so, the prevailing wisdom in hospitality, validated by public market performance, was that owning physical assets was a liability. The hottest companies in the industry went asset-light and became brand houses that get recurring franchising and management fees without the burden of actually owning hotels.

Shareholders loooove the asset-light configuration, because it generates higher margins and predictable cash flows. Marriott and Wyndham have been able to scale their businesses to become the world’s biggest hotel companies with this business model.

But maybe we’re starting to outgrow this view. HALO-bros2 are looking for physical spaces, accumulated expertise, location, design, atmosphere, and all the other stuff that AI cannot replicate.

Furthermore, these large hotel companies turned management and distribution platforms are now officially getting the heebie-jeebies from AI, as it’s threatening what’s left of their value proposition.3

Hotels are the definition of heavy assets with low obsolescence. A well-designed property in a prime location with an expert team with seasoned hospitality professionals. Michelin-starred kitchens, the warmth of a human being remembering your name and how you take your coffee. Call me silly but I don’t think that can be automated any time soon (or ever).4

As if to prove my point, Europe’s oldest hotel company Kempinski just made its first hotel acquisition in 55 years. CEO Barbara Muckermann explicitly described it as a "strategic shift towards an asset-heavier approach”. This is because direct ownership leaves no variable of the guest experience into someone else’s hands, which, at the end of the day, is more of a liability than owning some real estate.

Giving the hospitality industry a facelift

The hospitality industry has spent years feeling insecure about its “old economy” status, seen as slow to innovate and even dusty.

Tech companies were celebrated for being asset-light, scalable, and disruptive, the prom queens and kings, hotels were seen as slow, capital-intensive, and unsexy. The companies that managed to make hospitality more tech were rewarded.

But the logic is different now, and being hard to replicate is now where the value is at. The characteristics that made hospitality seem outdated such as physical presence and the impossibility of scaling a feeling are exactly what makes the industry in my opinion more resilient against AI disruption.

Hospitality did not need to become more like tech! The world has seen enough tech bros.

How to attract HALO-bros™ 101

If the HALO thesis outlined above holds, the implications for hospitality are significant.

Here’s how to make sure your hotel business fits the bill

1. Change how you position physical assets. They shouldn’t be (solely) framed as cost centers or liabilities. The building and its location and distinct design are the very reason you cannot be disrupted, thus desirable. You’re welcome.

2. A knowledgeable human team is your most unreplicable asset, which is why you should invest in staff, and their training, and wellbeing. This way they can deliver hospitality properly, and its the hardest asset you can have.

3. We should unsubscribe from asset-light orthodoxy or, at the very least, reexamine its premises. The franchise model has clear financial advantages but physical ownership should not be treated as inherently inferior - because it isn’t! In a HALO world, owning your own hotel might just be the smartest thing you can do.

4. Stop apologizing for the industry! Hospitality is built on human care, physical spaces, and experience that are impossible to replicate with machines. That’s the value proposition and I think it’s time to make it sexy.

I hope this edition of the Reservation did two things, them being 1) instilled some confidence in our industry (we are not slow to innovate, we are ✨HALO✨) and 2) did justice to my hotel finance studies.

I would love to hear your thoughts! Especially if I have any HALO-bros in the audience.

🔑 Emma

Leave a comment

at the time of writing this letter, there are already over a hundred people checked in to tPH, which means it will soon outgrow its boutique status. How bittersweet!

But please, stay and enjoy this fresh-out-the-oven edition of The Reservation.

Welcome to The Reservation, a tPH letter including long-form analysis and cultural criticism of the hospitality industry and relevant trends.

In this letter: why embodying a third space is the perfect strategic move for hotels (and a step-by-step).

At the beginning of 2025, the New York Times asked, ’where have all the third places gone?’.

Third places are indeed disappearing, as much of the time we used to spend connecting has been replaced with (doom)scrolling. The physical places where connecting with friends and strangers alike used to happen have been optimized away, as they were taking space from more profitable uses of square meterage.

What is a third place?

A third place, a term coined in the 1980s by sociologist Ray Oldenburg, is somewhere beyond home and work, where you are not tied to the responsibilities or identity of either. They are signified by their welcoming of both strangers and regulars; environments, where community thrives through conversation and presence.

Perhaps my favorite feature of third places is that they are signified by playfulness. According to Oldenburg, it is precisely the element of playfulness that distinguishes a third place from the laborious chores of home and work.

Us human beings are built for community. As these contexts have become rarer, there is a yearning that I think hotels should lean into, as they have the ability to provide a (third) place for community to emerge.

Here’s why I think hotels are the ultimate third place.

1. Treat everyone like a VIP

Do you know what I think the marker of a really great hotel is? That they treat every person who steps into the building as if they are occupying the most expensive suite on the property (this also applies to restaurants, retail stores, cafés… anywhere where you are given service). This is because when hospitality is good, it doesn’t matter who you are.

I have fond memories of spending an early spring day at the lobby café of Gstaad Palace. We were not staying at the hotel since we were only visiting for the day, but not once did my group and I feel out of place.

We ordered coffee on coffee and fries and more coffee, and I felt like I belonged in the scene, just like everyone else.

An especially charming image I recall is my friends and I engaged in a game of UNO with around ten teenage private school boys seated at the table next to us in their Loro Piana polos (oh to be 15 again).

Now imagine this had gone differently. Instead of being warmly welcomed, picture being ushered out, made to feel less-than a guest. While it’s an unpleasant predicament, it’s also strategically unwise for the hotel.

When a hotel manages to become a place to reside and belong not only for the guest but also the surrounding community, to those passing by, to whomever, it can build loyalty and rapport (and ancillary revenue streams!!!) on a level not reserved to more exclusionary properties.

Sooo in other words (and the strategic takeaway for you industry people): A tell-tale sign that a hotel has become a third space is when locals have found their way in and embrace the property as an extension of their lifestyle.

A special kudos to those hotels that have a wellness club so good (e.g., including a gym) that people in the area get a membership (like this St. George situation in Helsinki).

2. Offer immersion

When you are not at work or home, it’s almost as if you can be someone else.

Hospitality often offers escapism, and many of the best hotels make you feel like you are in another existence altogether, and allow you to exist out of your ordinary context.

For instance, a remote Aman sells silence and ritual, which our society today is largely devoid of. Chateau Marmont, on the other hand, sells the feeling that you may bump into someone interesting (I think this feeling of curated connections is what SoHo House tried to achieve but seems to have issues sustaining on the long term).1

A great limited-service example (because we love good hospitality no matter the segment) is Bob W., that lets guests cosplay locals by – instead of offering breakfast in-house – partnering with local cafés. This way guests naturally branch out in the environment in an entirely different and more immersive way.

Hotels that manage to build a distinct atmosphere that promises something out of the ordinary have guests leaving more fulfilled; and perhaps even changed on some level.

3. Invest in the unreasonable

Playfulness and unreasonableness should be the rule, because what would be more extraordinary than play?

When I think of playfulness, going the extra mile, and pure, unadulterated fun, I think of hotels where the bellboys still wear traditional uniforms, or you are greeted by an usher in a top hat who always calls you madame/sir.

Or even better, staff remember your name and notice details about you. I don’t know how creepy you’ll find this, but once a very esteemed gentleman working as hotel security (at the most exciting Europe hotel opening last year), had seen me doing a silly dance to my sister in the hallway on the CCTV.

He later saw me in the lobby and complimented my dance moves (I personally found this charming! Because why yes thank you sir my dance moves are really good).

More fun and play from the guest perspective ensue when you are able to execute your personal hotel rituals. A staple of mine is to order a chicken caesar salad and a dessert from room service, followed by requesting a wakeup call from concierge with the response being ”gladly, madame” (as you can see, being called madame is very important to me).

The last example, too unreasonable not to share: I remember this one instagram post from circa 2014, when the photos were still square and algorithm was a math term.

Someone (I cannot remember who, but probably someone notable considering the following) had arrived at the Carlyle, only to find their initials embroidered on the pillowcase. This is something the hotel offers its VIPs to this day.

Are you kidding me!!!!!!!! The impact of that is not small, considering I still lend brain power to this gesture of absolutely beyond-the-mark hospitality that did not even happen to me (one day).

In his book Unreasonable Hospitality, Will Guidara explains how his team made creating these memorable moments the very core of their restaurant business, with the humble result of being named the best restaurant in the world. If that’s not enough reason for you to invest some thought into whimsy, then I don’t know what is.

So take it from me (and Will), surprise your guests. Do something silly and unprecedented that will not only stick with them but with whomever they happen to share it with as an anecdote.

So you want to become a third place?

I strongly believe that hotels that are successful embody the concept of a third place will create unprecedented loyalty and become phenomena in their own right.

The demand is strong, and it only takes hotels leaning into their fundamentals for something wonderful (and lucrative) to emerge.

The blueprint, in short, is:

1. Treat everyone like a VIP

2. Offer immersion

3. Invest in the unreasonable

It is, in a way, the very point of hospitality to allow a guest to exist differently for a while. At its best, they are transported to a world of elevation, connection, and whimsical fun.

I cannot think of an industry more suited to create such a universe than hospitality (which is why I love it here so much).

Thank you for reading tPH. I’m grateful to have drawn in a bunch of people who enjoy overthinking hospitality as much as I do.

Yours truly,

🔑 Emma

I’m a hospitality strategist and writer with a philosophy degree I refuse to let go to waste. You can find me on LinkedIn.

Welcome to The Reservation, a tPH letter including long-form analysis and cultural criticism of the hospitality industry and relevant trends.

In this letter: luxury has become fast fashion and hospitality may be the only thing that can save its facade.

It was a post-pilates Saturday morning, when my friend Rebecca and I discussed how luxury goods are dying a public and painstaking death.

The industry increasingly resembles fast fashion. Rapid expansion has led to oversaturation, brands have continued to rely on price increases to maintain top-line performance, while repeatedly disappointing their clients in terms of quality and ethics.

Up to 40% of luxury goods were sold on discount in 2025, resulting in a 15-year low in industry margins (ouch).

There is a collective disillusionment as the gap between the fantasy being sold and what you actually get keeps widening. And this goes beyond the wealthy, as consumers across all tax brackets are getting sick of stuff, of overconsumption, and constant overstimulation.

Discretionary spending has shifted towards travel and wellness. Swiss private bank Julius Bär notes that:

“Affluent consumers in many regions are increasingly choosing luxury experiences instead of purchasing premium products, underlining that the growth of the experience economy can be at the expense of the luxury goods sector”.

This is skewed causality. I think it is precisely because luxury goods have in many ways become such a sloppy letdown that people are turning to experiences, where the value is immediate and demonstrable.

What cannot be replaced

In an age of ultra-connectivity and AI slop, where people are starved of genuine attention and third places to make connections, I believe human care will only become more valuable.

We have already seen this with brands including Loewe and Hermès demonstrating human craftsmanship in their marketing.

But I think the industry that has the chance to be the epitome of human care and attention, is hospitality. The very essence of the value proposition is that you are cared for and witnessed. Raffles recently leaned into this with their The Butler Did It campaign, highlighting the “accomplished savoir faire” of their service staff.

This is especially the case in luxury hospitality, where personalized service, i.e., having your preferences be witnessed by another human being and consequently having them catered for, will in my opinion become even more valuable and coveted.

Hospitality is a witnessed presence, and human touch and attention are becoming the ultimate luxury differentiator. It cannot be truly replaced nor degraded.

For many, time is the most valuable thing. Conveying to a guest that time has been invested in them through attention and care is what makes great hospitality what it is.

Will anything beat someone anticipating your needs, working to meet you as a human being?

The takeaways (a.k.a the section to look forward to in the Reservation)

The point of today’s letter, in a nutshell, is that hotels and hospitality should center themselves around witnessing and attention.

This should absolutely not be the mission of luxury hotels alone. The philosophy of hospitality can likewise exist in a limited-service hotel (or any service business for that matter but we’ll get to that in the future).

Conversely, this essence can be completely absent in a full-service luxury hotel buzzing with an impeccable staff-to-guest ratio. Hotels raising rates without differentiation while mistreating employees is just as embarrassing as luxury brands producing bags in sweatshops and selling them at 90% margins.

So voilà, the blueprint to success (or how not to become bracketed with Zara):

1. Centralize human attention and make witnessing the guest or client the utmost priority

2. Make sure your employees feel good enough to be able to offer said attention

3. Steps 1 and 2 apply to you regardless of star rating or segment or industry. No excuses.

The hospitality industry is currently being offered the mantle long held by the luxury goods industry. To be deserving of it requires a commitment to quality and the demonstration of genuine human care placed on the guest or client.

You have just witnessed a birth

How have you enjoyed your stay so far? You just made it to the end of the very first edition of the Philosophy of Hospitality (tPH between us friends ;))

The industry is undergoing a great shift, and I want to be part of documenting and starting the conversation around it. This is especially given that there are still very few representatives of younger generations entering the industry who are voicing their opinions.

Hospitality is less like an industry and more a tradition with a dizzyingly long history. That is cultural capital that is impossible to replicate and something that will immensely appreciate in value as the world continues to become more automated, distracted, and impersonal.

Thanks for being here,

🔑 Emma