Office building windows showing lobby stairs and two associates sitting on a bench inside

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.

Real estate
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Risk Considerations

Investing involves risk, including possible loss of principal. Past Performance does not guarantee future return. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. Potential investors should be aware of the risks inherent to owning and investing in real estate, including value fluctuations, capital market pricing volatility, liquidity risks, leverage, credit risk, occupancy risk and legal risk. All these risks can lead to a decline in the value of the real estate, a decline in the income produced by the real estate and declines in the value or total loss in value of securities derived from investments in real estate.

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