By 2023, the global travel and tourism industry showed resilience after recovering from the impacts of the pandemic. The hotel sector, in particular, performed robustly, with transaction volumes reaching significant heights. Global hotel investment saw strong momentum, driven largely by the return of international travel and pent-up demand for both leisure and business tourism. The global RevPAR (Revenue Per Available Room) surpassed 2019 levels by 12%, marking a full recovery, with the Middle East, Europe, and the Americas leading this growth. In contrast, Asia Pacific is expected to reach full recovery in 2024.
Hotel transactions in 2023 remained strong, with private equity firms dominating the market. New investors also joined, making up 19% of hotel investment volume. The market saw particular interest in luxury, select-service, and extended-stay properties, reflecting the increased global wealth and growing convergence of living and traveling experiences.
Looking ahead, the global hotel market is projected to continue its upward trend, with an expected growth rate of 15% to 25% in 2024. Sustainable investments are also becoming a priority, with more consumers and investors focusing on properties aligned with sustainability and wellness.
Despite the past three years being critically impacted by an unprecedented global pandemic, a current economic meltdown caused by the war in Ukraine, a sky-rocketing inflation and the need to comply with new environmental and sustainable regulatory requirements, hotels acquisition and development remain a very competitive market no matter where you are in the world!!
It is about attracting large sums of capital from existing hotel groups, wealthy family offices, institutional investors, and private equity firms edging their risks being exposed to an attractive and resilient class of assets.
Equilibrium Advisory Group is working collaboratively with all stakeholders in the industry and connects hotel owners, international hospitality companies, independents hotel operators, institutional investors, family offices in order to introduce to its clients CURATED OPPORTUNITIES