Published April 15, 2024
Imagine this: You’re ready to dive into hotel real estate investment. Option one is the classic resort: all-inclusive, with familiar amenities. Option two is a boutique hotel with local charm and unique experiences. Which one offers the best return potential?
Some modern travelers of today are going with option two. We’re witnessing a significant shift from generic hotel stays to immersive, experience-driven travel. And for keen investors, this trend presents a fantastic opportunity for savvy hospitality investors and those interested in hotel real estate.
The Experience Revolution
Let’s face it: the classic “sun and sand” vacation has been overdone by many experienced travelers. And many of today’s travelers want more than just a comfortable bed and a decent buffet. They crave a sense of place, a connection to the local culture, and the feeling that they’re genuinely getting to know a destination. Here’s what’s driving this revolution:
- The Instagram Effect: Social media has made us all armchair explorers. We see stunning photos and captivating stories, creating a hunger to go beyond the tourist trail and have our unique adventures.
- Been There, Done That: Experienced travelers want deeper connections, not the same old vacation.
- The Desire for Transformation: Travel isn’t just about relaxation anymore. People want to learn new skills, try new things, broaden their perspectives, and return home feeling enriched.
Why Experience-Driven Hotels = Smart Investments
- Higher Profit Potential: Unique experiences command higher prices = better returns. (67% of travelers will pay more, according to Skift research!).
- Loyal Guests: Memorable stays create repeat customers and brand advocates.
- Stand Out: In a crowded market, experience-focused hotels have a competitive edge.
How to Win the Experience Game
So, how can you turn your hotel property into an experiential powerhouse? Here are a few key strategies:
- Location, Location, Location (and a Little Local Flavor): Sure, beachfront views are lovely, but being steps from a bustling market or within a charming historic district ups the authenticity factor. Showcase the unique aspects of your location to guests.
- It’s All About Partnerships: Don’t try to do it all yourself. Team up with local businesses, artisans, tour guides, and cultural organizations to create a compelling destination for hotel real estate investors.
- Personalization is Key: Use guest data and technology to tailor experiences to individual interests.
- Storytelling Sells: Don’t just list experiences on your website; tell stories that capture the imagination of potential guests.
The Bottom Line
The future of hotel real estate investment isn’t just about square footage and thread counts. It’s about creating unforgettable journeys that linger in guests’ memories long after they check out. By embracing experiential travel, you’ll attract a new breed of traveler and position your investment for long-term success. Interested in exploring hotel investment opportunities? Contact VBW Ventures today to schedule a consultation and discover how to add the power of hospitality to your portfolio
