The global hotel industry has benefitted from an unparalleled rise in international travel over several decades. Hotel investors have positioned themselves to capture this growth, not just by being in the right locations but also by ensuring they choose the optimum operating model.
Going forward, hotel investors must consider a number of important questions in order to develop a preferred investment strategy. First, will the structural growth in international travel continue, despite a global economic slowdown? If so, which locations are most likely to benefit? With the rise of the sharing economy, where, and to what extent, might hotel returns be threatened? Finally, in this changing world, is the classic operating model of leased hotels still the most favourable?
In this article, we will consider each of these questions and propose our preferred investment strategy to benefit from the sector’s future growth potential.
Source : AXA Real Estate