Home Insights Real estate European Hotel Sector: Leveraging AI and other technologies to create value
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European Hotel Sector: Leveraging AI and other technologies to create value

September 18, 2024
Graeme McCormack
Head of Fund Management – Hotel & Leisure Division
Hugo Steen
Head of Investments – Hotel & Leisure Division
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The first step in a value-added investment strategy is finding undervalued or illiquid hotels with good micro locations in attractive markets. The second is creating value through some sort of transformation—brand repositioning, a targeted capex initiative such as expansion or refurbishment or an operational change such as implementation of technology.

The impact of that transformation (here we focus on the implementation of artificial intelligence and other technologies) depends on the extent to which the property has been undercapitalised. Essentially, the more antiquated a property’s technology systems are, the more value opportunity there is.

KEY TAKEAWAYS

Technology can be leveraged to improve:

  • Hotel management, by boosting productivity and sustainability;
  • The guest experience, through personalisation and automation of routine interactions; and
  • Marketing, by deepening prospect insights and boosting efficiency.

For technology to yield positive results, it must fit the brand and guests’ expectations.

Download the full paper for our insight.

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