BERLIN — Leisure demand is fueling recovery around the world, but resorts need more than just high leisure demand to be successful.
Owning and operating resort hotels in Europe adds additional layers of complexity, since resort products aren’t limited to only beachfront locations, and much of the overall success of the segment relies on third-party stakeholders, such as tour operators and transportation providers.
Still, the outlook for resorts in Europe is rosy, speakers said on a panel at the International Hotel Investment Forum on investing in resorts. Despite the challenges, sophisticated resort owners and operators are carving out expertise in their markets, managing yield and hyperfocusing on how to provide value to their target guests.
“Leisure is extremely elastic; if you have a good product, the elasticity of the market is huge,” said Javier Arús, senior partner at real estate investment firm Azora. “That proves how strong the demand for leisure is and it’s a key…