Alta Thoughts (March 2024)
By Rakesh Patel
We did not attend MIPIM in Cannes – it’s too broad and too far, for a hospitality fund based in Asia. However, given the concentration of real estate insight, it’s always good to follow the MIPIM articles and blogs.
The general takeaway is one of cautious optimism for 2024 with the mantra, “Do More in 2024”, based on a peak in funding costs and assets finding a clearing price. Beds and sheds are still strongly in favour, though there is some broadening into office, retail, and secondary locations. The missing piece at MIPIM was deals, with comments that there is a need to build deal momentum through the year.
If you want to read more, here is some of the MIPIM content:
MIPIM 2024: A Change in the Air as Real Estate Puts Its Best Foot Forward
MIPIM 2024: New Opportunities Emerge In Uncertain Times
One conference we did go to was AHICE in Singapore, where the focus is hospitality in SE Asia. The travel recovery trend remains in place into 2024, and investment demand for hotel product from new buyers is strong. More comments below.
Below are a few of our recent thoughts posted on LinkedIn. As always, good to hear your feedback and exchange ideas. You can follow us directly on LinkedIn and go to our website.
The Asian Hotel Industry Conference & Exhibition (AHICE)
Some takeaways from the panel and conference:
Married Yet Solo: More Women Are Traveling Without Their Plus-Ones
Solo travel, and in particular solo travel for women, is not only a growth sector, it also represents a societal shift.
Booking.com and Flight Centre’s StudentUniverse note that more than half their women customers intend to travel solo in 2024. The Travel Corporation brands report that 80% of their solo traveller bookings are women. And Road Scholar, say that 60% of their customers were married women travelling alone.
What is the motivation behind this shift? For Gen Zs, it is mainly for empowerment, personal growth, and a focus on mental well-being and self-discovery. For married women, it is spousal lack of/divergent interest, and once the kids have left home, it is experiencing a “Second Best Life”.
Research: Moving from Wellness Real Estate to Wellness Communities: Four Key Pillars
There remains little doubt that our built environment impacts our health and wellness. This comes from the physical build, the operational aspects, and community connectivity.
GWI identity several pillars that transform real estate into wellness real estate: moving beyond “sick buildings” into builds that optimise wellness; built environments that encourage activity; policies and programming that foster a wellness community.
As the connection between real estate and wellness becomes more obvious, and consumer behaviour changes accordingly, investors, developers and builders, are shifting their focus towards this space.
