The global luxury hospitality market synthetized in ten minutes. This was the well achieved purpose of Andrew Dickey’s – Managing Director at Hotels & Hospitality, JLL Miami – for his talk at the 3^rd of October Miami episode of Talks for a Change, the Medelhan Media Production series dedicated to the latest in the A&D high-end. As a premise, Dickey underlined the dynamicity of the hospitality sector. Indeed, the fact that, due to inflation, its rate might change from day to night, is what constitutes its beauty but also what makes it the most risky asset class. 

Looking at the global annual outlook for 2023, several interesting points of discussion emerge. First, while macroeconomic volatility has led to a decrease in the volume of short-term hotel investment, key performance continues to accelerate. This, combined with other equally relevant factors – such as the substantial amount of impending debt maturity on the horizon, increasing capex needs, and nearly 19 billion dollars in closed-ended funds reaching the exit state of their investment existence in the course of the next four years – should catalyze hotel investment prospects.

Moreover, with the continuous displacement of the capital market, irreplaceable luxury goods are the most attractive precisely because they are “liquid”. Data in hand, comparing the historic ADRs in many markets, the demand for luxury hotels has never been so high. The moment is also positive for the opening of Chinese borders and the increase in regional and international travel. This could bring, as an additional consequence, to the reemergence of cross-border investments, which have been largely absent over the past three years. In this context, India is seen as the new global growth market to focus on. Thus, as the boundaries between work, life and travel become more and more blurred, traditional hotel brands and investors have the opportunity to expand their product offering to new models of hospitality vertical structures, including residential brands, short-term rentals and private membership clubs.