Leisure Hotels Should be Considered as Own Asset Class

The leading industry conference for hotel investors, developers and operators in CEE and SEE inspired this year's delegates of hotel and tourism industry experts.

Leisure hotels for the purpose of the discussion were defined as hotels that have TRevPAR as the major contributor to the financial performance of the asset as opposed to the traditional RevPAR approach. Some of the key 'Leisure hotels as own asset class' discussion points included:

• Leisure hotels are very different propositions to city hotels. Much more complex and challenging to operate.
• They have many more moving parts and are much more difficult finance.
• Traditional hotel financial management styles are restrictive and require a different approach compared to that of a city hotel property where performance is largely driven by rooms performance.
• Applying a traditional financial management approach to a leisure hotel is like ‘trying to put square pegs in round holes’ and does not provide the most accurate way of evaluating performance.

A vote was cast at the end of the debate by the panel on the question of ‘should leisure hotels be considered their own asset class’? The panel voted 4-1 in favor of Leisure Hotels being their own asset class! This debate will surely continue given differentiating perspectives depending on if you are an owner, investor or operator.

Pictured from the Left: The panel moderator Roger Allen, Group CEO - RLA and the expert panel featuring Dr. Richard von Kalmar, RLA - Director Hospitality Investment, Silvija Lovreta, Director South Eastern Europe - Marriott, Ulf Pleschiutschnig, Managing Director - Morgan Stanley, Otmar Michaeler, CEO - Falkensteiner Michaeler Tourism Group, Kenneth Hatton, Senior VP Global Development, Belmond.For more information visit International Hotel Investment & Design Club Forum.