Principal Liora Haymann, Business Development Director Syrine, and Senior Project Manager Jennifer Llop-Noy attended the 2024 edition of the International Hospitality Investment Forum (IHIF) EMEA in Germany this April. The OBMI team joined over 2,500 hospitality investment visionaries, leaders, and experts to discuss the industry’s future trajectory, focusing on this year’s event topic, ‘Making the Markets.’

The attendees are recapping their key takeaways from the conference, covering trends and opportunities in hospitality investment, development, and operations.

Market Outlook – 

• 2023 was an excellent year for hospitality performance. This increase is estimated to continue through 2024 but with slower revenue growth. 
• Travel has opportunities for growth as the next generation becomes more economically stable. Younger generations are more focused on spending on experiences than previous generations.  
• On the same topic, travel is taking an increasingly larger portion of people’s disposable income. Rather than changing their cars, people choose to travel.  
• The demand for hospitality experiences is more discerning. As prices rise, so do expectations, increasing the need for operators to offer unique and new experiences. 
• New development has slowed as the sector faces financing challenges due to high interest rates. 
• Industry leaders believe the transaction market will begin to boom in 2024, as properties purchased before COVID-19 are likely due for refinancing. 
• Hospitality has proven to be more resilient than office or retail post-COVID, which has boosted the number of new investors interested in the sector. 
• Real estate associated with hospitality, such as branded residential components, stirs growing interest from consumers and developers. Consumers are inclined to invest in this area to ensure quality in far-away places, while developers see this as an opportunity to increase ROI. 
• Wellness continues to be an area of increased growth in the hospitality industry. There is an appeal to introducing medical wellness components; however, integrating top-tier medical wellness technologies increases expense, making it unattainable for most guests. 
• Luxury brands must innovate to surprise and delight guests, providing a unique experience aligned with the cost associated with luxury brands. 

Regional Trends  

• Beach resorts are expected to thrive in Southern Europe and the Balkans, where land is available, less regulated, and there has been less demand. 
• Saudi Arabia is experiencing exponential growth, as seen in the development of the Kingdom’s tourism. However, if development continues to focus only on high-end luxury, future massive growth may be limited. 
• Developers must be wary of “over-tourism,” as this concept has received push-back from locals who fear their communities are being stretched too thin by the increasing number of tourists visiting each year. 

IHIF was an exciting fusion of conversations surrounding region’s market growth, technological innovation, and focus on the luxury sector. As designers, we support both operators and developers in this time of transformation, crafting spaces that inspire, delight, and leave a lasting impression on guests for years to come. We look forward to showcasing OBMI’s extraordinary collaborations in the EMEA for dynamic destinations and new developments us as we embark on this exhilarating journey towards a future where every hotel stay is an unforgettable experience!

To learn more about OBMI’s EMEA presence and to discuss collaborations,  contact [email protected] or connect directly with Liora, Jennifer, or Syrine to continue the conversation from IHIF.