After weathering the pandemic, the hospitality sector has been experiencing record levels of growth and is rapidly evolving in line with changing consumer preferences and innovation. Hotel investment, once considered an alternative asset outside mainstream real estate, is now attracting significant interest from a broader investment audience. Investors increasingly recognise that the sector’s multiple value drivers and ability to hedge against inflation through dynamic pricing mechanisms more than outweigh its inherent cyclical risks.

The sector is experiencing long-term, structural supply shortages, particularly in key European cities, Japan and South Korea, where the development of new hotels is highly restricted by development costs and planning restrictions — a favourable dynamic that supports long-term growth in room rates. This shortage of new hotel developments leaves the upgrade and conversion of existing hotels as the primary route to value creation, with signifi