On 15 – 17 May the International Hospitality Investment Forum (IHIF) in Berlin brought together industry leaders, investors and experts from around the globe to discuss the latest trends and opportunities in the hospitality sector.

Well attended and full of interesting conversations, here are my key takeaways:

1. Experiential spending – the post-pandemic trend for consumers to increase the proportion of their spending on experiences at the expense of material objects has helped push up ADRs to record levels across the sector and generally buoy the top line. This trend has been particularly prevalent at the luxury end of the market which has seen record ADR growth. The question remains how permanent this trend will be, particularly in the face of higher interest rates and economic uncertainty.
2. Bid-ask spread – Whilst there remains plenty of investor appetite for the sector, there continues to be a discrepancy in price expectations between buyers and sellers which is currently holding transaction volumes back.
3. Re-financing prospects – With inflation still prevalent and interest rates unlikely to come down any time soon, the availability (and affordability) of re-financing as existing loans mature will be a key concern over the next 12 – 18 months. This may create opportunities for sales as some hotel owners explore disposing of assets to meet refinancing obligations.
4. Sustainability – ESG continues to rise up the agenda. With some major corporates now starting to have their choice of hotel spending impacted by a chain’s ESG credentials and the anticipated minimum energy efficiency standards (MEES) due to come into force in the UK in 2030, what does that mean for older stock and who will bear the cost of bringing those hotels up to scratch?