The pent-up demand for leisure travel and the revival of the business and group segments continues.
While Q1 2023 occupancy was still five per cent below Q1 2019, significant ADR growth (up 19 per cent) resulted in RevPAR exceeding 2019 levels by 13 per cent.
Despite the challenging macroeconomic environment, US hotels continue to outperform expectations.
In Q1 2023, US hotels beat Q1 2019 RevPAR (revenue per available room) levels by 13 per cent, based on data from STR. Room rates (ADR, Average Daily Rate) continue to be the main driver of this recovery.
While occupancy in Q1 2023 was still 2.1 points lower than the same period in 2019, ADR increased by 17 per cent.
Leisure travel continues to be a major driver of this development, although growth is slowing. Individual business travel and group travel continue to recover and are again contributing more to the positive industry performance.
Due to ongoing economic volatility and interest rate developments, global hotel investment volumes contracted to a ten-year low in the first half of 2023, but trading activity (number of transactions) remains robust.
This contrasts with the positive growth of the hotel sector in 2022 and 2023 compared to other asset classes.
Due to sluggish new construction activity globally (2.7% in 2023 vs. 4.6% in 2019), JLL experts expect RevPAR to continue to increase, i.e. rising room rates with only slow growth in new rooms.
Demand for accommodation in European hotels has continued in 2023 after a robust recovery in 2022.
This development was supported by pent-up demand for leisure travel and the revival of the business and group segments.
While occupancy in Q1 2023 was still five per cent below Q1 2019, significant ADR growth (up 19 per cent) resulted in RevPAR exceeding 2019 levels by 13 per cent.
WORLD TOURISM DAY - 5 TRENDS IN THE HOTEL SECTOR UNTIL 2030
The hotel industry is still benefiting from the rebound effect after the Corona pandemic. But to be successful in the future, it needs better adaptability and openness to new technologies across the industry. On the occasion of (today's) "World Tourism Day", we look at five trends that will influence the hotel industry in the coming years:
SHORTER ATTENTION SPAN
Due to a change in media usage, a shorter attention span is to be expected. Travellers are looking for quick access to concise information to make decisions. Social media platforms, video content and conversational interfaces are influencing travel planning more than ever.
DEMAND FOR HYPER-PERSONALISATION
Guests today, and more so in the future, expect personalised experiences tailored to their preferences. According to McKinsey, 71% of consumers want personalised communications, and 76% are frustrated when such offerings are lacking - hotels must respond.
TECHNOLOGICAL ADVANCEMENTS
Technology permeates our lives, and hotels must adapt to ongoing developments. Artificial intelligence, automation, robotics and augmented reality will have a major impact on the industry.
CHANGING PAYMENT NEEDS
The payment process in hotels is expected to simplify and become more like e-commerce in the future.
IMPORTANCE OF SUSTAINABILITY
Certification systems and the demand for corresponding offers by guests will encourage hotels to pay attention to maintaining sustainable standards. Large booking platforms already carry out sustainability assessments.
SABLE AT NAVY PIER - A TROPHY ASSET FROM ACRON IN THE "BEST BIG CITY IN THE USA".
Among the 25 largest hotel markets in the US, Chicago saw the largest year-over-year growth in all key performance indicators in the first quarter of 2023, according to STR:
Occupancy (up 23.9 per cent to 72.2 per cent), ADR (up 29.6 per cent to $174.71) and RevPAR (up 60.6 per cent to $126.13) all showed steep upward trends.
With the hotel "Sable at Navy Pier", a Curio Collection by Hilton, ACRON has a unique "trophy asset" in Chicago in its portfolio.
The multi-award-winning hotel with the largest rooftop bar in the world (registered in the Guinness Book of Records) is located on Navy Pier, the historic landmark of Chicago with nine million visitors annually.
Investors are currently offered an entry into an existing investment structure with an already operating asset as well as a short-term maturity with attractive return opportunities.
Return Forecast
- Issue price per share: 7'100 US Dollar
- Forecasted NAV per share at exit: 9'000 US Dollar
- Earnings per share: 1'900 US Dollar
- Exit date: 31 March 2025
- Term in years: 1.5
- IRR p.a. (internal rate of return): 17.4 %
- Multiplier: 1.3 x
Sources:
Matthews / STR: https://www.matthews.com/h2-2023-u-s-hotel-industry-outlook
Brochure Sable at Navy Pier - Acron - Manuela Olmesdahl
This "Trophy Asset" is developed and held through our partner, a very well established investment company (focus: Hospitality Project worldwide) based in Switzerland.
For reasons of discretion, a LOI ( Letter of intent) must be signed.
Afterwards we are allowed to open the access of the data room with all relevant information for a successful investment for you.
I would be happy to advise you as a partner for this „Trophy Asset“ and look forward to hearing from you.
Manuela Olmesdahl
Mobile or whatsapp +41 76 376 61 11
e-mail: Office@manuelaolmesdahl.com
PS: Meet me at Expo Real in Munich at 5th or 6th Octobre 2023.
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