Credit: ShutterstockExclusive Hospitality Report: Five-star luxury and budget hotels prove resilient
Latest GRI Club report reveals private investor discussions regarding the European hospitality real estate sector in 2024
August 28, 2024Real Estate
Written by Helen Richards
This optimistic outlook for the hospitality real estate sector has been reflected in roundtable discussions at GRI Club meetings across Europe in recent months, where participants continually report positive forecasts for revenues per available room (REVPAR) and expectations for further increases in the next two years driven by strong occupancy levels.
A number of discussions have also concluded the strength of five-star luxury and budget hotels, with both proving resilient considering their lower sensitivity to price and market fluctuations, while middle-range hotels are facing more challenges.
The latest GRI Club European Hospitality Real Estate 2024 report has collated the key insights and perspectives from the market’s leading players at recent GRI Club meetings, presenting an in-depth analysis of the sector and areas of opportunity in the short to medium-term.
Among the trends shaping the evolution of the hospitality industry are the implementation of AI & technology, the relevance of food & beverage - particularly in luxury hotels - and the growing role of sustainability - although market player opinion continues to draw disagreement on the level of pressure coming from occupiers and customers regarding sustainable practices and services.
Meanwhile, alternative accommodation is experiencing rapid growth in response to addressing the evolving needs of the twenty-first century travel market and significant shifts in guest preferences. This sector’s market share tripled from approximately 10% in 2010 to over 30% in 2019.
During the pandemic, 19% of travellers stayed in a vacation rental for the first time, and 86% now plan to continue booking vacation rentals post-pandemic. Furthermore, 52% of travellers now prefer vacation rentals over traditional hotels, reflecting a lasting change in preferences.
Read the full GRI Club European Hospitality Real Estate 2024 report for a deeper understanding of these trends, and the perspectives from the market’s leading players contributing to shaping the industry.
This optimistic outlook for the hospitality real estate sector has been reflected in roundtable discussions at GRI Club meetings across Europe in recent months, where participants continually report positive forecasts for revenues per available room (REVPAR) and expectations for further increases in the next two years driven by strong occupancy levels.
A number of discussions have also concluded the strength of five-star luxury and budget hotels, with both proving resilient considering their lower sensitivity to price and market fluctuations, while middle-range hotels are facing more challenges.
The latest GRI Club European Hospitality Real Estate 2024 report has collated the key insights and perspectives from the market’s leading players at recent GRI Club meetings, presenting an in-depth analysis of the sector and areas of opportunity in the short to medium-term.
Portugal GRI 2024: The exclusive report also takes a closer look at the Spanish and Portuguese hospitality sectors, as discussed at recent regional GRI Club conferences. (GRI Club)
Among the trends shaping the evolution of the hospitality industry are the implementation of AI & technology, the relevance of food & beverage - particularly in luxury hotels - and the growing role of sustainability - although market player opinion continues to draw disagreement on the level of pressure coming from occupiers and customers regarding sustainable practices and services.
Meanwhile, alternative accommodation is experiencing rapid growth in response to addressing the evolving needs of the twenty-first century travel market and significant shifts in guest preferences. This sector’s market share tripled from approximately 10% in 2010 to over 30% in 2019.
During the pandemic, 19% of travellers stayed in a vacation rental for the first time, and 86% now plan to continue booking vacation rentals post-pandemic. Furthermore, 52% of travellers now prefer vacation rentals over traditional hotels, reflecting a lasting change in preferences.
Read the full GRI Club European Hospitality Real Estate 2024 report for a deeper understanding of these trends, and the perspectives from the market’s leading players contributing to shaping the industry.
