In November, James Kaplan, CEO of Destination Capital, spoke at Kyoto University about post-conflict tourism and the importance of seizing the opportunity to program hotels with energy and water-saving systems in order to protect the environment, save money, and attract guests who will demand that hotels adhere to certain sustainability protocols. The talk touched on a variety of subjects, including trends, technology, design, and finance.
COVID-19 has already effected significant changes in human behavior, social customs, attitudes, the role of government in the economy, and connections between nations and international organizations. Additionally, it has hastened the good improvements and disruptions occurring in the hotel business.
Numerous countries are undergoing a rapid transition to digital and remote working methods. According to one (inevitably speculative) estimate, up to 1/3 of the world’s workforce will survive.
Part-time remote working practices on a permanent basis. By promoting teleworking, high-speed broadband access, and domestic energy efficiency, post-crisis recovery expenditure provides an opportunity to cement climate-friendly behaviors.
70% of Millennials are more inclined to join organizations with excellent environmental standards, which will translate into a preference for hotel bookings. Revenue opportunities and cost savings are increasing as a result of solving critical social challenges such as climate change.
Sustainability Recommendations for Hotel Investors and Asset Managers
Include environmental, social, and governance (ESG) criteria in investment analysis They enable you to track the performance of your present and future hotel assets, which translates into a higher risk-adjusted return on investment over time. Take advantage of the opportunities afforded by sustainable finance.
To reach the Paris Agreement’s 2030 targets, green investment must double. Green bond issuances are in high demand also priortizing eco-friendly investment strategies
Emphasize investing in countries and cities where governments offer green incentives to encourage sustainable investment by owners and developers.
Prioritize investment in environmentally friendly construction
Sustainable hotels are at least 20% more resource efficient than the average hotel in their market. Investors can build a well-diversified portfolio of environmentally friendly assets that spans multiple geographies.
Inspire action on a long-term basis
Throughout the life of a structure, its ownership changes. Investors can contribute to the establishment of a sustainable route for the property’s full existence. Sustainability funds will become more widespread as a share of hotel income.