Hospitality Investor

The dual-branded hotel model has been attractive to many hotel players since the early 2010s, but the idea of doing more with less has garnered particular favour in the current environment – for good reason. High interest rates, labour shortages, the increasing appeal of mixed-use developments, less available land, heightened material and construction costs and the ability to pull in different but complementary types of travellers have put this efficient model front and centre for certain hotel investors in certain markets.

Hotel owners and investors are taking a slow and phased approach to capital expenditure (capex) and property improvement plans (PIPs). This is due to the higher cost of borrowing and some cautiousness about where we are in the cycle and what’s to come.

Aircraft delivery issues and the saturated skies over Europe could be driving EasyJet’s increased focus on its tour operation as much as its desire to grow profits, industry experts have claimed. The airline released its 2024 results at the end of last year, with a headline profit before tax of £610 million, an increase of 34 per cent year on year. But this growth was far outstripped by its in-house tour-operator EasyJet Holidays, which registered a 56 per cent increase in profit before tax to £190 million in the same period.

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Kai Yuan Holdings Ltd has secured a €175 million refinancing loan for the Paris Marriott Champs-Élysées hotel.

If hospitality trades in the US have looked sluggish in 2024, down 20 percent on 2023 volumes and 30 percent on the highs of 2019, it has also been a record year for big ticket deals amid an increasingly sprightly debt scene, with alternative lenders and US hotel CMBS originations proliferating.

Pandox has completed the acquisition of Radisson Blu Hotel Tromsø in Norway from DNB Eiendom for kr‎750 million, around £52.9 million.

The start of 2025 marks a pivotal moment for the global hospitality sector as sustainability and financial transparency converge under new regulatory mandates. At the end of last year, President Biden wrapped up his tenure in the White House with a bold national commitment to decarbonize the U.S. economy by 61 per cent by 2035. The UK Government has also recently announced its own game-changing move, signalling plans to mandate sustainability and climate disclosures in accordance with International Financial Reporting Standards (IFRS). By Ufi Ibrahim, CEO of the Energy & Environment Alliance

In the face of low or flat rate growth, hotels will turn to ecommerce, actionable data insights, and generative AI to maintain profitability. What’s on the cards for hotel performance 2025? More low rate growth, a slightly more positive outlook for revpar in the US than in Europe, but what seems sure is that hotels will not be able to count on the increases seen during the immediate post-pandemic bounce.

The appeal of hospitality has driven a surge in transactions across Asia-Pacific in 2024, with JLL forecasting that the region will reach a record $12.2 billion in hotel deals by year end. This would mark a 4.3 percent growth on 2023, which totalled $11.7 billion. Driving deals have been Japan’s stellar fundamentals, dynamic dealmaking by private equity capital, and a growth in liquidity in territories such as India, South Korea and Thailand. Cross-border investment has been a hallmark of the hospitality investment surge, accounting for around a quarter of deals to date, according to JLL. This is partly credited to ongoing currency fluctuations in the region which have made deals cheaper for foreign capital, as well as the strong recovery of international tourism.