Between 15 and 17 April, more than 2,500 senior representatives from across the hospitality industry will head to Berlin for the International Hospitality Investment Forum (IHIF) EMEA 2024.
This year’s speakers include: the CEOs of IHG, Hilton and Accor as well as senior representatives from Starwood Capital, TUI Group, KSL Capital Partners, and more.
Not only will you hear from leading hotel investment executives, but the multiple networking opportunities mean you’ll be able to capitalise on the return to dealmaking we are seeing this year.
The following interview is part of a series aimed at bringing you a flavour of the conversations you can expect on stage, highlighting some of the big-picture trends and themes ahead of the event.
Over the last couple of years there has been a notable shift in design and thinking around traditional asset classes like living, seniors and even office. Best-in-class investors and operators have borrowed ideas from the hospitality sector and incorporated them into buildings. The so-called hotelisation of real estate only looks set to continue as consumer demands shift.
Ahead of IHIF we caught up with Pavlos Gennimatas, managing director, Hines Europe. Gennimatas will be speaking on a panel entitled ‘Living Sectors Unveiled: Exploring Opportunities, Similarities, and Synergies for Cross-Sector Investing’ (Wednesday 17 April, 10:30am Adjacent Spaces Track).
Hospitality Investor: We’ve seen other asset classes borrowing more and more from hospitality over the last few years. Is that something you’ve observed?
Pavlos Gennimatas: This has been a noticeable trend in the living sector, extending from student housing to BTR, where we see a growing emphasis on human centricity and using spaces as services rather than mere physical features. We’ve also observed an increasing importance around overall product quality, as well as continued focus on strong locations, particularly in subsectors such as BTR and PBSA. As quality becomes an even greater priority, we are also seeing a heightened focus on the brands driving these operations. Our firsthand experience with our PBSA brand, aparto, highlights the significance of branding and marketing in shaping the appeal of a project.
Hospitality Investor: What are the biggest differences between hotels and the build-to-rent and alternative living subsectors?
Pavlos Gennimatas: There is a significant variation between these sectors in terms of length and purpose of stay. This results in higher volatility for hotels, compared to BTR, while other sub-sectors such as PBSA or co-living occupy a middle ground. In any sector where residents settle in for longer, there's a greater expectation for community engagement and development. Conversely, hotels, with brief stays and high supply, exhibit higher price elasticity, emphasizing the importance of services. PBSA presents a unique case where some students prioritize shorter (semester) stays and are willing to pay higher prices for convenience. These sectors also operate under different regulatory frameworks; while BTR navigates pricing regulations, hotels and PBSA benefit from greater rental flexibility across Europe.
Hospitality Investor: How are changes in consumer behaviour likely to impact and change the living sector?
Pavlos Gennimatas: Consumers are prioritizing convenience and mobility while navigating the higher cost of living and declining homeownership rates. As a result, there's a growing demand for rental properties that not only offer excellent connectivity to city centres but also integrate multiple services in one location. This trend aligns with the increasing popularity of amenitized products, as residents increasingly expect to have access to amenities such as fitness centres, pools, and coworking spaces all under one roof.
Hospitality Investor: How important is the idea of community in these asset classes?
Pavlos Gennimatas: The importance of community varies depending on subsectors. In PBSA, community engagement is vital for resident satisfaction, yet in other sectors such as BTR it has more recently began to take shape. We expect its importance to continue growing as residents seek more holistic living experiences and products become more amenitized. We’ve also seen alternative subsectors capitalizing on this increasing desire for community to appeal to prospective residents who prioritize communal living experiences.
Hospitality Investor: The theme of this year’s event is “Making the Markets” emphasising the need to take control of any given situation, rather than simply rising the wave. Have you got an example that you could share either in your own business or the wider market?
Pavlos Gennimatas: We view this as a continuous journey rather than a single milestone. Our aim is to constantly innovate using lessons learned from past projects to shape our future strategies. We’ve taken this approach in our initiatives in Italy, where we have combined our knowledge from various sectors to develop intergenerational schemes, which focus on creating adaptable, community-centered environments. Projects such as Lambretta and Lampedusa demonstrate our use of data from sectors including PBSA, hospitality, and BTR to craft solutions that address the evolving needs of different generations.
If you still haven’t registered for IHIF EMEA yet, you can do so here. You can also view the latest programme, here.