European hotel sector: Value opportunities in lifestyle luxury

September 18, 2024

Graeme McCormack

Head of Fund Management – Hotel & Leisure Division

Hugo Steen

Head of Investments – Hotel & Leisure Division

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Historically, value investors tended to avoid the luxury hotel market, which primarily attracted investors seeking trophy assets. Since the pandemic, however, changing demand has opened up new value creation opportunities.

The number of high net-worth individuals around the world has grown significantly, and post-pandemic, they’re eager to travel. But the way they travel is different now. Consistent with the broader trend in travel and leisure, high net worth individuals have demonstrated a preference for authentic experiences. This has opened a new segment in the luxury hotel market: lifestyle luxury.

In contrast to traditional 5-star hotels (‘classic luxury’), lifestyle luxury is about the experience—a unique property in an interesting location, highly desirable bars and restaurants, a place visitors and locals alike want to see and be seen. A lifestyle luxury property is more likely to have a Michelin-starred restaurant than a spa and an intriguing backstory than a famous name.

In this paper we explore the factors driving demand in this new segment and the high performance we’re seeing as a result. We’ll share how investors can capitalise on the significant value opportunities in the luxury lifestyle hotel market (including by finding unique properties and crafting the kinds of experiences high net-worth individuals are keen to pay for) and examples of such value creation.

Download the full paper for our insight.

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Delegation of Investment Management to Affiliates

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This website may contain videos where the comments were valid on the date the video was recorded. Markets move continuously and you should only rely on current information for any investment decisions. The information and materials contained on this website, and the terms, conditions, and descriptions that appear, are subject to change. All content on this website is presented only as of the date published or indicated, and may be superseded by subsequent market events or for other reasons. In addition, you are responsible for setting the cache settings on your browser to ensure you are receiving the most recent data.

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This website contains general information only on investment matters and nothing in this website is intended to constitute or form part of any offer or inducement to issue or sell, or any solicitation of any offer to subscribe for or purchase, any securities or investment products in the UAE (including the Dubai International Financial Centre) and accordingly should not be construed as such. Information in this website is not directed at you if we are prohibited by any law of any jurisdiction from making the information on this site available to you and is not intended for any use that would be contrary to local law or regulation. Products or services mentioned on this site are subject to legal and regulatory requirements in applicable jurisdictions and may not be available in all jurisdictions. Accordingly persons are required to inform themselves of and observe any such restrictions.

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This website contains general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. The information it contains does not take account of any investor's investment objectives, particular needs or financial situation. Past performance is not a reliable indicator of future performance and should not be relied upon as a significant basis for an investment decision. You should consider whether an investment fits your investment objectives, particular needs and financial situation before making any investment decision.

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