The theme for the Future Hospitality Summit - FHS World 2024, taking place from 30 September -2 October at Madinat Jumeirah in Dubai is ‘Invest in Our Future’. The conference programme will comprise numerous content tracks under the main theme including Investment & Developmen;, Destination & Urban Development; People, Planet, Profit; Tech & Innovation; and Real Estate Hotelisation. In the lead up to the event we asked several industry partners about how they’re investing in the future in 2024 and beyond.

The future of hospitality real estate is shaped by changing market trends and the need for resilient investment models. Investors can navigate the dynamic landscape and achieve long-term success by focusing on sustainability, technological advancements, and diversified portfolios.

1. Diversified Investment Portfolios

A well-diversified portfolio across different hotel categories and geographic locations is vital to optimizing opportunities. Investors should balance their holdings among luxury, midscale, and budget hotels and consider serviced apartments and resorts to ensure stability and capitalize on varied demand trends.

2. Long-Term Perspective

Hospitality real estate investments should be approached with a long-term perspective. While market conditions may fluctuate, the inherent value of well-located and well-managed properties remains robust. These assets can endure economic cycles, offering resilience and the potential for substantial returns.

3. Flexible Financing

The current economic climate necessitates exploring alternative financing options. Investors should look beyond traditional debt and consider co-investments, subsidies, and government incentives. Creative financing solutions can provide the necessary capital while maintaining flexibility in an evolving market.

4. Sustainability as a Core Strategy

Investing responsibly by prioritizing sustainability is not just an ethical choice but a strategic one. Sustainable practices lead to reduced operational costs and attract environmentally conscious travelers. Moreover, hotels that demonstrate strong environmental and social governance (ESG) practices are likely to gain favor with investors and guests alike.

5. Operational Excellence and Value Engineering

Ensuring operational excellence through value engineering is crucial. Engaging skilled project teams and selecting the right operator can optimize the value of hospitality real estate. This approach helps deliver projects within budget, meet high standards, and avoid costly mistakes, ultimately enhancing profitability.

6. Monitoring Economic Indicators

It is essential to closely monitor economic indicators such as inflation and interest rates. Inflation can impact operational costs and guest spending power, while interest rates affect the cost of capital. Investors with robust balance sheets and creative strategies will stand out in this competitive landscape.

7. Adopting Technological Advancements

It is imperative to stay ahead by investing in technology. Technology adoption will be a critical driver of success in the hospitality industry, from enhancing guest experiences with AI and IoT solutions to streamlining operations through advanced management systems.

Anne Bleeker
In2 Consulting
+971 56 603 0886
The Bench