AUSTIN, Texas – Think of hotel demand generators and esports or gaming may not be the first things that come to mind. On June 20, Associated Luxury Hotels International (ALHI) announced a series of five strategic partnerships to support international esports events by identifying and securing accommodations from within its diverse portfolio of 250 luxury hotels, resorts, cruise lines, and destination management organizations.
ALHI’s Vice President of Esports Sales and Consulting Services Neil Johnson describes the organization’s attitude as “bullish and excited about gaming and esports.” Citing a $200 billion market value and 3.5 billion consumer count, ALHI hopes to leverage the industry’s sheer magnitude by breaking it down into bite-sized chunks for hotels to digest and adopt in ways that work for them.
With specialties and services ranging from transportable gaming setups and experiential activations in underutilized hotel spaces to consulting and program development, these organizations will demonstrate to hotel owners and investors whether fusing these industries is a financially worthwhile opportunity.
ALHI has partnered with Cyberlabs, UNEVN, PLAYHRDR Advisors, The Esports Radar and the ESports Integrity Commission to bring next-generation gaming, esports, education, and entertainment solutions to its membership, redefining how hotels and destinations engage with today’s tech-savvy, experience-driven travelers.
In identifying the sector’s largest markets—and therefore the applicability of this partnership for ALHI’s member properties—Johnson pointed to Asia and North America, particularly the United States. Yet emerging markets like Japan and Portugal also exist, with ALHI sharing its eagerness to activate these partnerships across resort properties and cruise lines as well.
Nonetheless, the introduction of any corporate alliance requires a thorough assessment of the challenges—or rather, opportunities, as Johnson likes to label them.
With a significant portion of its member base consisting of hotels under a flag, the question of compatibility between these activations and the rigidity of brand standards remains unclear.
Johnson believes that this effort does not serve to detract from corporate guidelines but to enhance them instead. He said that every brand is trying to connect with the next generation of consumers and adds that gaming is one of the strongest vehicles for achieving that. Johnson also does not shy away from ALHI’s extensive independent and boutique member hotels, highlighting their greater levels of adaptability.
Associated costs
Costs also come into play when considering a partnership. Increased energy expenses, equipment maintenance, brand image concerns, and labor issues like union shadowing are factors that may keep owners and investors apprehensive about expanding operations to include third-party esports and gaming.
Inclusion might simply be part of a room block. Or maybe it’s about investing in infrastructure to position [a hotel] as gaming- and esports-friendly. It could even mean activating in the influencer and content creator space.
Neil Johnson
ALHI remains aware of these worries but embraces the flexibility of integration. Johnson cites that “inclusion might simply be part of a room block. Or maybe it’s about investing in infrastructure to position [a hotel] as gaming- and esports-friendly. It could even mean activating in the influencer and content creator space.”
A recent case study of ALHI’s “lodging meets gaming” success was seen at the StarLadder CS2 Major in Budapest, hosted at the Kempinski. That single booking generated over $300,000 in revenue, with Johnson noting a quick turnaround from initial conversations to signed contracts.
Thus far, four properties are actively moving toward infrastructure investments. Johnson mentioned that another 15 to 20 hotels he’s personally spoken to during his 18–24 months at ALHI are asking for updates and looking for the right entry point. He remains confident in the momentum these initial activations will bring.
Regarding a partnership’s impact on hotel RevPAR, ADR, or non-room revenue, Johnson said that financial projections have not been conducted—but by purposeful design. He cited the risk of overwhelming members with aggressive data, especially those who remain apprehensive about collaborating.
Yet from a pragmatic point of view, it seems unclear how owners will be enticed to pursue these partnerships without concrete, numerical research. Upon launching official activations, Johnson indicated that ALHI will conduct year-over-year comps, seasonal lift analyses, and revenue stream reports. “But for now, we’re focused on creating demand, building trust, and earning buy-in,” he said.
When asked about ALHI’s explicit role amid this announcement, Johnson labels the company as a “connector.” “We introduce esports and gaming companies to our member hotels—either in person or virtually. We provide context, explain the market, and give both sides space to talk.” When the ball starts rolling, ALHI typically steps back from discussions unless explicitly asked not to by properties that would like to keep them involved.
The only case where ALHI plays a consistent and active role is through its Play Harder Advisors consultancy cooperation. Here, ALHI sets the pricing and scope because of the strategic consulting services offered directly to destinations and DMOs.
Pricing and contracts vary by the type of service commissioned by the hotel. When outlining overall revenue collection, Johnson stated the following:
“Our member hotels fully own the revenue they generate from activations, whether that’s gaming lounges, events, or infrastructure investments. ALHI doesn’t take a cut of that. We do have separate partnership agreements with a few of the companies involved, and those help us continue offering strategic guidance, education, and matchmaking to our members. But any revenue generated by the hotel stays with the hotel.”
