The answer to this question is obvious, but also not…
In this post:
Hotels can’t stick to their opening timelines
Let me start by acknowledging that opening a hotel is no small task. Construction projects are complicated to begin with, and often delayed. But hotels are among the most complex kinds of construction projects to get operational, given the complexity of the interiors, all the inspections that have to take place, the need to hire staff, etc.
Generally speaking, I completely understand how the opening timelines of new hotels can shift, and how delays can happen. When it’s announced in 2022 that a hotel will open in 2025, don’t be surprised if the timeline is delayed to 2026. Actually, assume it’ll be delayed by at least a year or two, and be pleasantly surprised if it opens as initially planned.
But what puzzles me is when hotels start accepting reservations just weeks or months before the intended opening, only to then push back the timeline considerably again (or in some cases multiple times). I would understand if this happened once in a while, but I’d say that it happens more often than not. I constantly write about new hotel openings I’m excited about, and a vast majority of the time, the timeline gets delayed even after the hotel starts accepting reservations.
Just to give one example, in late 2023, the St. Regis Belgrade was supposed to open as of February 1, 2024. Yes, the February 1 date was predicted just weeks before the planned opening. Then the opening was delayed to October 1, 2024, and now it’s delayed to November 2, 2024. How can you be so wrong just weeks before the planned opening?
Of course I understand why hotels are excited to start accepting reservations — they want to start generating revenue as soon as possible, and as much of it as possible as well. There’s the saying that airplanes don’t make money sitting on the ground, and in the case of hotels, they don’t make money when they’re closed.
I guess I’m just kind of confused about the thought process that leads to this, especially when we’re talking about hotels belonging to global hotel groups, where they have experience and knowledge about how common these delays are.
I suspect this comes down to the hotel owners pressuring management to open ASAP, even if the timeline is unrealistic, and them not getting too much pushback. And then when the timeline doesn’t work out, the mess of canceling reservations falls on the sales folks, I guess. Is there a more nuanced explanation than that, or…?
These delays often work out to the benefit of consumers
At least here in the United States, we don’t have great consumer protections for hotel stays, and technically in most situations, you’re not entitled to anything if a hotel cancels your confirmed reservation. That being said, I always like to keep an eye on the FlyerTalk threads for new hotel openings, and for the most part, hotels with delayed openings do offer guests something for stays that can’t be honored.
In some cases they offer to accommodate you at another hotel while refunding your stay, in some cases they’ll offer you bonus points for the cancelation, and in other cases they’ll offer you a suite upgrade when you do stay in the future, after the new opening.
Just to give some current and recent examples, the Thompson Palm Springs is offering people bonus points for canceling their reservations, Kennedy 89 Frankfurt is offering bonus points or a suite upgrade on a future stay, the Park Hyatt Marrakech (which finally opened) was offering to rebook people at the Kempinski while also offering a full refund, etc.
Heck, you could probably make a business of just booking new hotels when the openings are first announced, and then seeing what you’re offered when they’re canceled. Though I say that with a major asterisk, as it’s not something I do (I don’t remember the last time I booked a newly opened hotel).
This also comes with some risks. Back in the day, SPG would warn members who the company believed were making speculative bookings at hotels in order to get compensation:
Request compensation for delayed hotel opening
While our hotels will absolutely consider compensating any guest for genuine inconveniences or issues they determine they are responsible for, a pattern is developing which increases our concern as to the authenticity of some of these reservations.
Please understand we have placed your account on an alert list and are monitoring all pre-opening reservations at SPG participating hotels. Please reply acknowledging receipt and your understanding of this message so that we may reactivate your account.
It seems that could’ve most easily been addressed by, you know, opening hotels with the promised timeline, but I guess that was a bit too simple of a solution?
Bottom line
I get that opening hotels is super complicated, yet for whatever reason, hotels can’t seem to be realistic about the timeline with which they’ll accept their first guests. Based on the hotels I keep an eye on, even after opening up reservations, opening timelines are delayed even further more often than not.
I can’t wrap my head around why hotels consistently have this issue, since in most cases, they provide some sort of compensation to those who were impacted by the delay, and it’s also a headache to reach out to all guests who have been booked. But that doesn’t seem to actually lead to any change in behavior.
What has your experience been with delayed hotel openings? Have you ever dealt with this?
What is strange in this specific hotel San Regis Belgrade is the date for new year's eve are not bookable ... like they are sure they will have some more delays
I think its just normal for humans. Money pressures on all sides. Miscalculations.
The only constructions that I have witnessd at blazing speeds either ontime or early was in Hong Kong.
In my time there, they built two additional cross harbour tunnels, a large airport way out there, which need a cross suspension bridge, not only a highway, but also the city train right to the airport.
Yes its corrupt as any where...
I think its just normal for humans. Money pressures on all sides. Miscalculations.
The only constructions that I have witnessd at blazing speeds either ontime or early was in Hong Kong.
In my time there, they built two additional cross harbour tunnels, a large airport way out there, which need a cross suspension bridge, not only a highway, but also the city train right to the airport.
Yes its corrupt as any where else in the world, govt, constructions, lack of human rights for workers, but they complete it.
The same for the buildings. Make it and make money. Late, lose money.
Meanwhile they were building a huge sanitation project on the HK Island from back to front under the mountain. Move over Switzerland.
Ben are you going to check out the REGENT hotel in Santa Monica? Its opening October 1st. Was planning to go myself, but still put off by the high resort fee being $90 even with points. Would like a through review from you or someone.
$90? For a city a hotel? I want some of what they’re smoking.
Okay, curiosity but me and I looked - it at least includes a $50 dining/spa credit per day, electric bike rentals and a waived pet fee but that’s still outrageous. At least electric bikes are somewhat useful in Santa Monica. Considering the near-limitless dining choices in the area, the hotel’s food would need to be spectacular to make it worthwhile and I’m sure $50 doesn’t cover much.
Ok go ahead and review the hotel for us then please.
“Heck, you could probably make a business of just booking new hotels when the openings are first announced, and then seeing what you’re offered when they’re canceled.”
That sounds like an excellent business plan and raison d’etre for a new travel blog! ;)
Owners lose more money on a complete but empty hotel over compensating guests but have rooms filled.
I’m booked at the Thompson Palm Springs in less than two weeks and it looks like the opening date has yet again been pushed out. This will be the second time my reservation won’t be honored. The last time, FWIW, I was not offered points, just a “matching rate” at the Hyatt Palm Springs (which if you’ve been would know it’s one of the most outdated and poorly managed Hyatt properties) where the rack rate was less than half of the rate at the Thompson. Gee, thanks!
Ben, do you have any additional info on the delayed opening of the St Regis Belgrade? I have a reservation for mid October and the reservation is still active…
I thought this article was written due to delayed Waldorf Astoria Cacique opening which I booked for February 2025. Add this one to the list too. I wonder what compensation I'll get.
Did your Feb resv get cancelled? I have one mid March, hoping it opens.
Officially it opens on March 15 now. My reservation didn't get canceled yet. Do I get a compensation from the hotel or from Hilton Honors? I booked with points.
I also am booked February 2025 for one week. I have not heard anything regarding cancellation. In fact last week I contact Hilton Diamond desk as I was considering adding additional night and noticed on line it appeared availability was significantly curtailed until June. Was told only information they had was property was accepting reservations Feb 1 2025 and continue to watch or call back if needed help securing additional night . Plan to just watch.
Seems pretty simple and obvious. Hotels provide perishable goods and there costs of producing those goods are by and large fixed. So opening and having an underutilized hotel for weeks/months is a big lossmaker. It's usually not feasible to find sufficiently many guests last minute, so you want to allow bookings ideally for a few months before opening .
So what can delay opening? Well, you need all sorts of permits, licenses, and so on...
Seems pretty simple and obvious. Hotels provide perishable goods and there costs of producing those goods are by and large fixed. So opening and having an underutilized hotel for weeks/months is a big lossmaker. It's usually not feasible to find sufficiently many guests last minute, so you want to allow bookings ideally for a few months before opening .
So what can delay opening? Well, you need all sorts of permits, licenses, and so on to run a hotel. Food service and liquor license, health department permit, fire permit, licenses to run spa and swimming pool, personnel with certain qualifications/degrees (especially in Europe), cable TV registration/plan, broadcast licensing (e.g., to play music in restaurants and bars), etc.
Obviously, what's needed is gonna vary from jurisdiction to jurisdiction (e.g., in Germany, some very large hotels may require a staff council).
Any of the things mentioned can be a holdup.. and it's not a complete list (elevator inspections....)
And, of course, hold-ups aren't limited to licenses and permits. Could also be that a part penciled into the building's plan isn't available and unique enough that you can't replace it with something else.
Hold-ups coupled with strong financial incentives to be aggressive about opening due to hotels' cost structures then explain the phenomenon.
Well, just look at the BER airport fiasco - such happens with residential and commercial properties as well. Construction chugs along and its looking like the project will be complete. Then it is inspected for occupancy and some issue with the life safety design is identified. Sometimes entire elements have to be ripped out, redesigned and rebuilt.
Then the lawyers get involved.
@ jfhscott -- Obviously that's the prime example of a construction mess, heh. But the difference is that new flights were never planned from the new airport (or terminal, really) until it was actually ready. It's not surprising to me when hotel openings are delayed by a long time, but what surprises me is when they start accepting reservations.
Obviously there are some properties that are way too overly optimistic, but to give hotels in general some benefit of the doubt; it's an extremely fine line between thinking you're ready to open (or at least more or less ready), and then finding out something isn't right and needing to delay. To jfhscott's point, it's especially true with a commercial project due to liability issues, and there are countless number of things to consider/that can go wrong.
Actually, @Ben, I had a flight booked in to BER in December the year the airport was initially planned to open - 2012 if I recall correctly. I received a rebooking notice telling me that my flight would be landing at the old airport. Obviously, it wasn't a particularly big issue other than having to change my plan for getting into the city.