8 Key advantages of investments in sustainable hospitality real estate and development.
Tourism is one of the largest job providers in the world. It is an ever-growing industry with focused on providing the best Solutions for travelers. Nowadays a brand reputation, wellness, health and eco conscious travelers are all part of the improvement of relationships with stakeholders including employees, investors and local communities.
In the hospitality industry environmental social and governance ESG are increasingly being integrated into business operations to address sustainability, social responsibility and ethical governance. We are already familiar with energy efficiency, water conservation, waste management, sustainable sourcing, and we can see great developments within employee well-being and engagement.
New developments within ESG go well beyond what's currently being applied. We can now see an incredible increase in for example green building certifications or following environmental and ethical practices & guidelines, community engagement or employee well-being and engagement. The governance delivers guidelines for ethical business practices ESG reporting and transparency plus risk management and long-term sustainable planning.
Investors are increasingly drawn to sustainable hospitality real estate due to the combination of financial regulatory and reputational factors. This is exactly what makes such investments attractive not only from a long-term risk and return perspective but also in response to evolving market demands.
Let me go into detail and give you 8 key reasons why you or your company to get involved in investing in the sustainable hospitality industry and real estate development.
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1 Financial performance and long-term value.
1a Increased asset value. Sustainable buildings will have green certification and often command higher property values long term.
1b Lower operating costs. Sustainable real estate tends to have lower utility costs like energy and water conservation plus waste management. These costs savings improve net operating income whilst increasing the return on investment for owners and investors.
1c Reduced vacancy rates and higher occupancy. Eco conscious travelers and businesses are increasingly seeking out sustainable hospitality options, corporates taking care of their personnel as well as travelers wanting the privacy, health and Wellness.
2 Growing market demand for sustainable travel. This is driven by consumer preferences aligning with the growing global trend towards eco-friendly tourism as well as CSR the corporate social responsibility. Many corporate clients including multinationals have their own sustainability targets aligning with ESG goals.
3 ESG driven investment tracks growing number of institutional investors private equity firms and real estate investment trusts are focused on these ESG portfolios. They prioritize companies and properties with strong sustainability and governance credentials. There is access to green financing investors in sustainable real estate often benefiting from access to green bonds loans or other financing mechanism like grants or government grants.
4 Risk mitigation like climate change resilience rising sea levels for example or energy supply disruptions. Long term tenant and guest stability are key sustainable features offering stable income streams
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5 Regulatory and compliance pressure both from the government like taxes or building practices reducing carbon footprints. New hospitality properties and developments are to incorporate these sustainable goals avoiding fines or regulatory costs. Not only investors but also hospitality brands or companies or developments are increasingly required to report the environmentally environmental impact on their portfolios.
6 The reputation and the brand equity we all know we follow certain brands we watch what they're doing and investors can benefit from being associated with the sustainable projects and products, hotel developments, buildings and strengthen their brand image among stakeholders customers and business partners and eventually guests
7 Innovation in building design and technical advancements like green building technology smart energy management systems reducing upfront costs and improved long-term returns. Besides that, integration with smart digital solutions the hospitality industry is increasing adopting smart technologies guest service and maintenance.
8 As tourism is a very important source of income for many countries and governments, they are applying tax advantages to subsidies tourism grants for development low interest loans quickly returns in some cases and in some countries receiving amounts to 50% of the total development cost.
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At Mocinno International Group - The Hospitality Consulting Company we are we are seeing an increased demand from investors as well as property owners or landowners to align with sustainability and ESG. Not only the travelers who prioritize their privacy, health & wellness or longevity, support to the community, local foods and produce and integration with local cultures. They want an enhanced Eco social guest experience and feel safe.
Mocinno has received and is working on a great number of projects worldwide, mainly in development and on request from the property owners to search and align with sustainable investors to create a better world. The return on investment on these properties are extremely high, not only financially, but they also contribute to the climate, to well-being and community engagement and the environment. Eventually hotel operators will have the brand opportunity to create ultimate loyalty with guests and travelers.
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For investment opportunities in the global hospitality real estate segment please contact [email protected] .
#hospitalityrealestate #wellness #investments #Mocinnointl
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We look forward to presenting you the current investment projects and operating brands.
Founder | CEO of VIRTU Resort & Residences | Global Group of Sustainable Hospitality Leaders & Impact Investors supporting planet-positive projects together with Indigenous wellness practices.
4 周Such a pleasure working with you and your incredible team Mocinno International Group - The Hospitality Consulting Company! VIRTU Resorts & Residences Ltd.
Help To Turn Your Travel and Hospitality Business Ideas Into Software | Partnership Specialist at Adamo Software
1 个月Thanks for sharing