Alta blog

You will have seen the rise of hotel interest in adding wellness and fitness elements into their product offering, given consumer demand and pressure to effectively utilise spare GFA. Does it make sense financially? Good to focus on the data.

Last year, hotels that added minor wellness to their offering (less than 10% of revenue), saw the largest uplift, with a 26% increase on TRevPAR. That was driven by higher prices and a 10pp rise in occupancy. Overall, hotel spa wellness revenues are already more than 30% higher than 2019.

Delivering an authentic experience is still a challenge though. Many resorts still fail to integrate their offering into a holistic product. “Character is missing from a lot of these wellness concepts,” says Amanda Potter, Lead Designer for the Fitler Club, US.

Please reach out to us to learn more about Vikasa, our holistic wellness brand with a successful 12 year track record.

The Alta Capital Real Estate team are honoured to support the World Sustainable Hospitality Alliance, as their Asian advisor. Bringing sustainability into hospitality is the future of our business, and I am looking forward to sharing this important journey with the WSHA team.

Here are a few of our recent thoughts posted on LinkedIn. Always good to hear your feedback and exchange ideas. You can follow us directly on LinkedIn and go to our website.

Global Hotel Investor Intentions Survey 2024

The latest CBRE survey points to improved investor sentiment in the hotel sector, with more than half of hotel investors intending to invest more in 2024 vs 2023.

Robust travel demand and hotel pricing power, points to the operational attractiveness of the sector. Investors also expect higher returns, and see realistic pricing and lower funding costs.

In Asia-Pacific, investors remain focused on gateway cities and resort markets, and value brand selection and operational flexibility. In terms of portfolio allocation, they expect hotels to face the least repricing pressure in the commercial real estate sector.

Don’t expect material supply growth till 2029/2030: JLL

With hotel supply forecast to increase only modestly until 2030, expect more existing property and brand acquisitions, to fuel expansion.

JLL forecasts medium-term hotel supply CAGR of 2.4%, about 180bps below the long-term average. This will help support daily room rates, and asset values in high barrier-to-entry markets.

With supply growth remaining limited, expect investors and operators, to acquire existing brands to increase their market share. Most recently, Hilton/Graduate/NoMad, AMAN/PIF, Luxor/Montage, MSD/Auberge.