Hotels have a chance to hold the advantage over Airbnb after COVID: Pro-invest
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Hotels have a chance to hold the advantage over Airbnb after COVID: Pro-invest
The COVID-19 pandemic has presented the hotel industry with an opportunity to fight-back against unregulated short-term operators, according to Pro-invest CEO Ronald Barrott.
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Pro-investA render of the Holiday Inn Express Sydney Airport.
Astute investors in the hotel sector can ride the upside of the current Covid-19 crisis and be well-positioned for a return to travelling "normality" as long as they commit to a sustainable future, according to Pro-invest.
CEO of the boutique investment firm, Ronald Barrott, said while new science-led protocols, cleaning and service measures were being introduced to the company’s network of Holiday Inn Express hotels across Australia which will require changes from traditional styles of hotel operations, the new era of travel should not come at the cost of gains made in incorporating sustainable principles and measures into the hotels.
“Gone are the days of crowded lifts, with lift capacity figures to shift to a maximum of maybe just four,” he said.
At a glance:
- Pro-invest is set to open two new hotels in Q3 2020 – Sydney Airport and Queenstown.
- The firm believes hotel investors will require strong sustainability programs for future investments.
- According to Pro-invest, Covid provides hotels opportunity to fight-back against unregulated short-term operators.
“Such a change in operation may very well result in increased energy consumption as lifts may now travel up and down at greater frequencies.
"Smart design comes handy here with regenerative lift drives which aid in recycling energy. Such technology has been deployed at our Holiday Inn Express Melbourne Southbank to cover the hotel’s 16 levels.”
An artist's impression Holiday Inn Express & Suites Queenstown. Source: Pro-invest.
Holiday Inn Express Newcastle re-opened over the June long weekend with a full house, and Pro-invest’s newest hotel, Holiday Inn Express & Suites Queenstown, is scheduled to open in mid-July and Holiday Inn Express Sydney Airport will also open in the third quarter of 2020.
Pro-invest Managing Partner, Dr Sabine Schaffer, said instead of viewing this period with a sense of doom and gloom, the hotel sector should take the opportunity to recalibrate and highlight that hotels are providing the safest and highest level of quality facilities in the accommodation sector.
"Houses and apartments rented out in the unregulated accommodation sector simply can’t offer such guarantees, so our industry has a great opportunity to recapture some of the lost market-share," she said.
"We expect many short-term rental properties to return to long-term rental arrangements as a result of travellers’ concerns about hygiene and safety.
“From an investment point of view, we believe that institutional investors will make sustainability an even higher priority in the future.
"Coronavirus may have captured the attention over the past three months, but climate change and the need for all industries to adapt will soon return as one of the highest priorities."
The lifts at the Holiday Inn Express Newcastle. Source: Pro-invest.
Mr Barrott said the firm used the temporary closure of its four existing hotels to upgrade all its safety and health procedures, partnering with industry-leading cleaning and hygiene companies to ensure the venues offered a "Covid-safe environment for guests".
“We have also reviewed our hospitality procedures, including changing our food and beverage offering, utilising single use cutlery and crockery that is biodegradable and compostable wherever feasible given current circumstances," he said.
"Even food items are being carefully selected to take into account guest feedback, with Holiday Inn Express Newcastle adding to guest confidence by preferencing whole pieces of fruit that have a natural “protective” barrier such as bananas and mandarins.
"The hotel achieved a 5-star NABERS Energy rating during the first week of June 2020 and we are aiming for our Holiday Inn Express Melbourne Southbank to achieve a 5-star NABERS Energy rating by next year."
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