Weaker near-term hotel outlook; Europe better placed ahead

A soft consumer spending outlook and subdued business demand, reinforced by the effects of the Iran war, will weigh on global hotel demand in the coming years. Longer term, hotel performance will be supported by the structural rise in spending on accommodation services. However, the case for hotel outperformance is stronger in Europe than in the US, as demand is less reliant on business travel and supply is more constrained.

This piece is part of a new series of notes navigating property's structural revolution, with a focus on alternative sectors. (See here.)