Research

Global Hotel Investment Outlook 2023

The global hotel industry is on track for a full recovery with re-emergence of international travel and opportunities for cross-border hotel investment.

January 24, 2023
Contributors:
  • Zach Demuth
  • Jessica Jahns
  • Marina Bracciani
  • Ophelia Makis

Despite macroeconomic headwinds, geopolitical tensions, and ongoing supply chain disruptions, the global lodging industry remained resilient in 2022 with fundamental performance accelerating towards a full recovery. China’s long-awaited reopening following three years of strict lockdowns will undoubtedly fuel even further growth, with global investors likely to re-enter the mix. Capital market dislocation, namely rising debt costs, are sure to be top of mind for most investors entering 2023; however, those that remain nimble will have opportunities to acquire quality assets and grow their portfolios. As the world continues its return to normality now three years past the initial onset of Covid-19, the way in which we travel has been forever impacted. Global consumers continue to place a heightened importance on authentic experiences and with the world’s wealth growing faster than ever before, expect lodging demand to accelerate. The systemic and societal changes caused by the pandemic present an opportunity for hotel investors to create innovative products to own the entire travel experience.

Traditional hotel brands have already started to capitalize on this via the launch of non-hotel brand extensions such as Ritz-Carlton’s yacht or Aman’s private membership club. In 2023, look for hotel investors to deploy capital across multiple lodging verticals to capture an increased share of travelers’ wallets and mitigate their own risk. As such, 2023 is shaping up to be one of the most exciting years for the global lodging industry.

Key Takeaways

  1. Global hotel performance continues to accelerate despite macroeconomic headwinds

  2. Expect cross-border hotel investment to increase in tandem with reemergence of international travel

  3. The focus on owning the entire travel experience gives rise to innovative investment opportunities

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