Hospitality Think Tank

For this first edition of Coffee Break with the Hospitality Think Tank, our Members share their viewpoints and expertise around the return on investment of sustainability measures in hotels and resorts.

Implementing sustainability initiatives in the hospitality industry is important and highly relevant in the current environment. But it can be challenging and measuring their return on investment is a critical success factor, as the triple bottom line approach and its implementation differ depending on the companies.

A collaborative effort between investors, operators, and developers is necessary to ensure the long-term sustainability of assets, aligning the timeframe of each stakeholder with the lifecycle of the property as well as their financial and philosophical standpoints. This will ensure the durability, long-term thinking of the ESG initiatives implementated.

Pressure and regulations also offer a framework to enforce sustainable properties. However, they differ greatly within each region of the world, with Europe being more proactive due to more emphasise on sustainability within its legislation.

Challenges of valuing sustainability measures in real estate investments affect return on investment, as valuers need to better understand and incorporate sustainability measures in their valuations. Technology can help support data collection around sustainable land use and carbon sequestration, while the potential for higher ADRs and revenue from sustainable practices can also be taken into consideration.

Full conversation available here:

With the participation of Mattias Innocenti (Accor), MariaPia Intini (CitizenM), Hylton Lipkin (Banyan Tree), Chalana Perera (RETRACE Hospitality), and Celine Vadam (WE(i) Think)