The threats occasioned by the rise in alternatives to traditional hotel accommodation are changing the investment landscape for what used to be a specialised and exclusive real estate segment. This report offers valuable insight into the many different sectors on offer in the hospitality industry and draws surprising conclusions.
New accommodation types – such as capsule hotels, hostels and serviced apartments – are emerging as direct threats to hotels. Other traditionally separate asset classes such as student accommodation, timeshare and the private rented sector are entering the short-term letting space as well.
The new threats are being facilitated by the sharing economy as websites such as Airbnb and Housetrip enable the emerging accommodation providers to market cost effectively to a wide audience of potential guests. This report is vital reading for hospitality professionals and investors, for it proves that while the new alternatives initially appear to be vastly different, they actually overlap one another and have many factors in common.
The report also shows how demand for alternative accommodation sectors can be impacted by markets such as the Millennials and the Baby Boomers, and analyses their different purchasing behaviours.