Gilda Perez-Alvarado, the Global CEO at JLL Hotels and Hospitality, leads a specialized team of cross-border investment sales professionals based across the Middle East, Asia-Pacific region, the Americas and Europe. Here, she shares her insights into the hospitality landscape.
What is the current state of the regional hotel and hospitality industry?
Despite economic volatility, the global hotel industry remains strong and resilient, with RevPAR surpassing 2019 levels by 11 percent in the first half of 2023. Most regions, including the Middle East, the Americas and Europe, have fully rebounded. While Asia-Pacific is not yet back to pre-pandemic levels, its performance has surged since China’s reopening, with RevPAR only 7.9 percent behind 2019. The hotel industry is expected to continue improving, driven by the return of group, corporate and international travel. Muted supply growth will also further support the industry, particularly with ADR growth surpassing inflation by 3.2 percent in the first five months of the year.
What are the emerging trends in hospitality?
The hospitality industry is undergoing tremendous innovation expanding new verticals and increasing technology adoption driven by AI. Hotels are expanding their offerings, particularly in the luxury space, as the lines between work, life and play have blurred and the world’s HNW population continues to grow. These include private membership clubs, yachts and branded residences. Hotels use tech for better guest experiences, with virtual tours, kiosks, analytics, and AI chatbots. The integration of digital platforms is also transforming workforce processes, empowering employees with new skills and automating time-consuming processes.
In terms of investment opportunities, which regions or countries do you believe hold the greatest potential for the sector?
Investors favor urban safe-haven markets as economic challenges persist. Urban hotels performed well in H1 2023 and are expected to grow in H2. Assets in cities like Tokyo, Paris, London, and New York remain highly sought after by global investors.
What key statistics can you share with us?
Private equity continues to be the largest acquirer of hotel assets globally as investors raise record funds targeting the sector. H1 2023 also saw a notable increase in new investors entering the sector. In fact, 24 percent of global hotel investments came from first-time buyers, mainly high-net-worth individuals and family offices.
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