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16
Aug

Alta Thoughts (June 2024)

By Rakesh Patel

It’s always great to exchange ideas and learn from others, at a good hotel conference. Here are some soundbites from the recent SEAHIS event in Bangkok. I was also happy to share a panel on independent hotel brands with Chris Hur – Lodgis, Toby Smith – Swire Hotels, Michael Piro – Indochina Capital and Andrew MacGeoch – BCLP.

 

  • Hotel investment landscape reacting to higher funding costs and bid/offer spreads. Though hotel transactions as a percentage of office at multi-decade high of 50%.
  • Overall Asian hotel occupancy and ADR numbers remain strong. Growth beginning to level off into 2025. Costs remain elevated, but manageable.
  • There is a case for independent brands, allowing enhanced personal experience, more flexibility, direct booking model, but there are challenges to scaling.
  • AI adoption is accelerating in hotels, with accessible solutions on offer. Seen as human enhancing, not human replacing, in a heavily people relationship sector.
  • Asia has lagged Europe in adopting ESG standards, but there is progress in countries like Singapore, HK, Thailand, in terms of regulation and reporting.

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    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.

     

    2024 Wellness real estate market growth (2019-2023) and future developments

    Blue Zone master planning, biofiltrarton systems, smart technologies, are all part of the ballooning wellness real estate sector. GWI forecasts this space to grow by almost 16% CAGR, approaching the trillion-dollar mark by 2028.

    Growth has been spurred by the pandemic forcing us to think more closely about physical and mental health, in relation to our built environment. Beyond the built space, there is increasingly the addition of wellness infused programming and experiences, including nutrition courses, breath work sessions, and guided meditation. This has created rising demand for buildings, homes, and communities, that create a healthier lifestyle.

    As for the commercial case, to quote Rachel Hodgdon, CEO of the International Well Building Institute, “What’s good for people is good for business”.

     

    India’s Travel Spending: ‘Fast-Growing Pools of First-Time Tourists’

    Incredible India! The Indian economic boom is producing a new generation of first-time travellers. McKinsey forecasts that the country’s travel spending will rise from $150bn in 2019 to $410bn by 2030.

    Whilst Indian travellers are becoming an important international source market, the bulk of their travel is still domestic. This is leading to a substantial investment in infrastructure (+70 regional airport additions/upgrades), aircraft (+970 jets Indigo/Air India), and hotels (+2x Hilton/IHG).

    But it’s not all smooth flying! With this growth, comes the inevitable challenges to the tourist experience. Local road infrastructure overload, overtourism in hot spots, unsafe pollution levels, to name a few.

     

    The great hospitality gripe list

    How many hotel room gripes do you have? Jo Ellison from the FT has plenty! Any of these sound familiar?

    No simple master switch to turn off the arcade of lights in your bedroom; air-conditioned rooms chilled well below any human need; in a digital age the lack of a dedicated plug/USB point next to the bed; unnavigable TV screen based hotel services; etc, etc.

    Our industry is centred on the guest experience. Listening to feedback is part of the continuous learning and delivery journey. There is much to do.

     

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